CERTAIN NOTICEABLE POLICIES TO SUPPORT EMPLOYEES AND EMPLOYERS WHO ARE FACING DIFFICULTIES DUE TO BEING AFFECTED BY COVID-19 UNDER RESOLUTION NO. 68/NQ-CP

On July 01, 2021, the Government has been issued Resolution No. 68/NQ-CP (Hereinafter referred to as “Resolution No. 68“) stipulating certain supportive policies for employees and employers who are facing difficulties due to the impact of the COVID-19 pandemic, in order to support as well as recovery in production and business, stabilizing production and trade, and ensuring employees’ life and safety. Hereunder are some outstanding policies that Companies need to pay attention to:

1. Policy on reduction of premium rates payable to the Occupational Accident and Disease Insurance Fund:

• Employers shall pay 0% of the salary fund used as a basis for payment of social insurance premiums within 12 months (from July 01, 2021 to June 30, 2022), this rate shall be applied to Employees who are subject to the Occupational Accident and Disease Insurance regime. (Except cadres, civil servants, public employees, and armed forces personnel of Party agencies, state agencies, sociopolitical organizations, military, and public security forces, and state budget funded public non-business units);
• Employers shall provide the monetary support obtained from the reduction of such premium rates for Employees in order to prevent the COVID-19 pandemic.

2. Policy on temporary suspension of contributions to the Retirement and Survivorship Fund:

• Employers who have fully paid Social Insurance premiums or are suspending their contributions to the Retirement and Survivorship Fund until the end of April 2021 but are affected by the COVID-19 pandemic resulting in a reduction of 15% of employees participating in Social Insurance or more compared to April 2021 (including Employees who are temporarily suspending work, suspending the performance of Labor Contracts, or agreeing to take unpaid leave), Employees and Employers may temporarily suspend the payment to the Retirement and Survivorship Fund within 06 months from the time of submission of the application dossier;
• If the Employer has been resolved to suspend payment according to Resolution No. 42/NQ-CP dated April 09, 2020 and Resolution No. 154/NQ-CP dated October 19, 2020 of the Government, shall still be entitled to a temporary suspension of contributions to the Retirement and Survivorship Fund with a total suspension period not exceeding 12 months when it meets all the statutory conditions.

3. Policy on support for tranning and job maintenance for Employees(The maximum monthly assistance is VND1,500,000 per Employee, with a maximum support term of six months). Accordingly, Employers shall be allowed to receive the financial support for training, retraining and improvement of vocational skills from the Unemployment Insurance Fund when meeting the following conditions:

• Fully pay Unemployment Insurance premiums for Employees for full 12 months or more up to the time of requesting for support;
• Change the technological structure as prescribed in Clause 1 Article 42 of the Labor Code;
• Have the revenue of the adjacent quarter prior to the time of requesting for support decreased by 10% or more compared to the same period in 2019 or 2020;
• To plan or coordinate with vocational education institutions in planning on training, retraining and improving vocational skills to maintain jobs for Employees as prescribed;
• Application dossier for support are submitted from July 01, 2021 to June 30, 2022.

4. Policy on support for Employees who have to suspend from Labor Contracts, take unpaid leaves(Each Employee shall be entitled to lump-sump support of VND1,855,000 if he/she has to suspend his/her Labor Contract or takes unpaid leave for a period of 15 consecutive days to less than 01 months and VND3,710,000 for a suspension period of more than one month). Accordingly, enterprises, cooperatives, public non-business units that cover their own recurrent expenditures or investment and recurrent expenditures, etc,…are required to temporarily suspend operations by the competent authorities for prevention and control of the COVID-19 pandemic, which resulted to:

• The Employee is suspended from performing the Labor Contract, takes unpaid leave for 15 consecutive days or more, from May 01, 2021 to December 31, 2021, with a start date from May 01, 2021 to the end December 31, 2021; and
• Such Employee in participating in compulsory social insurance up to the time before his/her suspension of the Labor Contract, taking unpaid leave.

 5. Policy on support for Employees who have to suspend from work under Labor Contract regime (The lump-sump support is VND1,000,000 per person)shall be applied when the following conditions are fully met:

• The Employee is suspended from work as prescribed in Clause 3, Article 99 of the Labor Code and has been quarantined or in a locked-down area as requied by the competent State Agency from 14 days or more during the period from May 01, 2021, to the end of December 31, 2021; and
• Such Employee is participating in compulsory Social Insurance up to the time before his/her work suspension.

6. Policies on support for Employees who have to terminate their Labor Contracts(The lump-sump support level is VND3,710,000 per person) shall be applied when the following conditions are fully met:

• The Employees have worked for enterprises, cooperatives, public non-business units that cover their own recurrent expenditures or investment and recurrent expenditures, etc.. that are required to temporarily suspend operations by the competent authoritiesfor prevention and control of the COVID-19 pandemic and their labor contracts has been terminated from May 01, 2021 to December 31, 2021; and
• Such Employee is participating in compulsory Social Insurance but not eligible for unemployment benefits.

In addition to the above noticeable policies, other relevant policies specified in Resolution 68 issued by the Government such as: Supplemental policy and policy for children; The lump-sum support policy for art directors, actors, painters, tour guides; Assistance to household businesses; Loan policy to pay furlough wages, wages for production recovery; Support policies for Employees without Labor Contracts (self-employed) and some other specific subjects.

 Best regards,