According to Conclusion No. 02/KL-ĐCT dated August 25, 2023, by the Presidium of the Vietnam General Confederation of Labor, many businesses are currently facing difficulties due to reduced or canceled orders, resulting in a significant number of union members and laborers experiencing reduced working hours, terminated labor contracts, and a serious impact on their employment, income, and livelihoods, affecting both the laborers and their families.
In response to this situation and in order to continue providing support and alleviate these difficulties for union members and affected laborers, on August 25, 2023, the Vietnam General Confederation of Labor issued Decision No. 7785/QD-TLĐ ("Decision 7785"), amending and supplementing certain provisions of Decision No. 6696/QD-TLĐ ("Decision 6696") regarding the implementation of direct support policies for laborers. ATA Legal Services has summarized some notable points as follows:
1. Extension of Support Period
The support period will be extended by an additional year for union members and laborers who have been affected in terms of employment from April 1, 2023, to December 31, 2023. Accordingly, the latest date for receiving applications is January 31, 2024, and the latest date for completing support procedures is March 31, 2024.
2. Eligibility Criteria for Support
a. Beneficiaries of Support
Decision 7785 retains the provisions regarding the eligible groups to receive these support policies, which include union members and laborers working under labor contracts in enterprises that paid union fees as of April 1, 2023, and who have experienced reduced working hours, job suspension, contract termination, or unpaid leave during the period from April 1, 2023, to December 31, 2023.
b. Support Conditions
Specifically, in addition to meeting the general conditions related to reduced working hours, job suspension, or contract termination during the period from April 1, 2023, to December 31, 2023, Decision 7785 also specifies the income criteria for eligibility. Laborers must have income that, after deducting mandatory monthly payments according to regulations, is equal to or lower than the minimum regional wage for any given month.
Furthermore, to be eligible for these support policies, union members and laborers from the mentioned groups must meet the following minimum conditions: (i) Be employed under a labor contract at the time of requesting support, and (ii) Have their names on the payroll list of the enterprise prior to the start of reduced working hours, job suspension, contract termination, or unpaid leave.
Additionally, the new regulations state that if a union member or laborer is eligible for support from multiple categories, they will receive support under each applicable category, but only once per person per policy. If it is not possible to verify the support policies already received by the union member or laborer, a commitment regarding whether they have received or not received the support policy must be provided.
3. Maintenance of Support Levels as per Previous Regulations
Furthermore, according to the new regulations, starting from August 25, 2023, when transferring support funds to laborers' bank accounts, any transfer fees (if applicable) will be covered by the financial resources of the local union or higher-level union.
This policy follows the previous support package for union members and laborers under Resolution No. 06 issued by the Vietnam General Confederation of Labor in early 2023. The decision to extend this support package has been widely viewed by experts as a necessary and effective solution to help laborers and businesses overcome challenges, restore production, and contribute to the promotion and development of the economy.
Decision 7785 takes effect from August 25, 2023.
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