Support for employees whose working hours are reduced or whose labor contracts are terminated

On January 16, Permanent Vice President of the Vietnam General Confederation of Labor Tran Thanh Hai signed a Resolution of the Presidium of the Vietnam General Confederation of Labor on supporting union members and employees whose working hours have been reduced or whose labor contracts have been terminated due to businesses cutting or reducing orders.

On the same day, Vice President of the Vietnam General Confederation of Labor Phan Van Anh signed a decision to promulgate regulations on implementing policies to support union members and employees whose working hours have been reduced or whose labor contracts have been terminated due to businesses cutting or reducing orders.

According to the resolution, from September 2022 to now, many businesses have encountered difficulties due to order cuts and reductions, leading to a significant number of union members and employees having their working hours reduced and their labor contracts terminated, seriously affecting the jobs, income, and lives of many union members, employees and their families.

Pursuant to Official Dispatch No. 1170/CD-TTg dated December 16, 2022 of the Prime Minister on measures to stabilize and develop a flexible, effective, sustainable labor market and care for workers' lives, the Presidium of the Vietnam General Confederation of Labor agreed to implement a policy to support union members and workers whose working hours have been reduced or whose labor contracts have been terminated due to businesses cutting or reducing orders.

The support policy is for 3 subjects: union members and employees at enterprises and cooperatives who have paid union fees before September 30, 2022. Specifically:

The first subject is union members working under a labor contract whose daily working hours, the number of working days per week or per month (except for overtime reduction) or who are suspended from work according to Clause 3, Article 99 of the Labor Code for 14 days or more during the period from October 1, 2022 to March 31, 2023, and whose income in any month is equal to or lower than the regional minimum wage, will be supported one time at the rate of VND 1,000,000/person.

The second subject is union members who have temporarily suspended the performance of their labor contracts or taken unpaid leave during the term of their labor contracts for 30 consecutive days or more (except for employees who temporarily suspend the performance of their labor contracts or take unpaid leave for personal reasons), from October 1, 2022 to March 31, 2023 and the time of suspension of the performance of their labor contracts or taking unpaid leave from October 1, 2022 to March 31, 2023 will receive one-time support of VND 2,000,000/person.

The third subject is union members who terminate their labor contracts between October 1, 2022 and March 31, 2023 (except in cases where employees unilaterally terminate their labor contracts illegally, are disciplined by dismissal, agree on probationary terms stated in the labor contract but the probationary period does not meet requirements, or one party cancels the probationary agreement, receives monthly pensions and allowances for loss of working capacity) but are not eligible for unemployment benefits, they will receive one-time support at the rate of VND 3,000,000/person.

The deadline for receiving applications is no later than March 31, 2023. The deadline for completing support procedures for union members and employees is no later than May 30, 2023. For each case, employees will receive one-time support in cash or by bank transfer. Funds to support union members and employees are disbursed from the financial resources of the grassroots-level union./.

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