The Covid-19 outbreak caused many businesses to suffer from labor cuts and moderate operations. After advising my clients about paying social insurance for workers who quit their jobs due to the disease, I share it here and hope that it will help you.
1. Legal grounds
The 2014 Law on Social Insurance.
Decree 115/2015/ND-CP detailing Social Insurance.
The 2012 Labor Code.
Official Letter 422/BHXH-CSXH regarding the settlement of the social insurance regime for employees forced to implement medical isolation measures to prevent a new strain of severe acute respiratory syndrome Corona.
2. In case the employee and the company agree to leave without pay
Clause 4, Article 42 of Decision 595 states:
Employees who do not work and do not receive a salary of 14 or more working days in a month do not pay social insurance for that month. This time is not counted for social insurance benefits.
Therefore, if the employee agrees to quit his job for more than 14 days in a month, the company will take notice of the reduction of social insurance premiums (in case of unpaid leave).
The two sides agreed on salary and welfare policies during the time of resignation.
3. In case the employee does not decide to quit his job
Legal measures may be taken while suspending business and leaving workers due to the Corona disease.
a. Annual leave
According to Clause 2, Article 111 of the 2012 Labor Code.
Article 111. Annual leave.
Employers have the right to set annual leave schedules after consultation with workers and must notify them in advance.
This annual leave is still counted as the working time for the employee (according to Clause 9, Article 6, Decree 45/2013 “Time to stop working or leave a job without the fault of the employee”). Therefore, it is not allowed to report on the reduction of social insurance. And this is not the case in Clause 4, Article 42 of Decision No. 595/QD-BHXH (the employee does not work and does not receive a salary of 14 working days or more).
The annual leave period is prescribed by law, and according to the company’s labor regulations (usually, employees have 12 days of annual leave).
For that reason, the employer still has to pay the full salary and pay social insurance to the employee.
b. Temporarily stop working
Under Clause 2, Article 98 of the 2012 Labor Code.
Article 98. Severance pay.
In case of suspension of employment, the employee is paid as follows:
The two parties agree on the severance pay (but it cannot be lower than the regional minimum wage set by the government). In the following cases: incidents of electricity and water are not the fault of the employer and the employee; or natural disasters, fires, dangerous epidemics, enemy sabotage, relocation of operations at the request of competent state agencies, or for economic reasons.
The Prime Minister also signed Decision 173/QD-TTG to announce the epidemic was dangerous on a global level. Therefore, this case is subject to the regulations on stopping work due to dangerous epidemics.
Salary paid to employees: As agreed by the parties but not lower than the regional minimum wage (for Ho Chi Minh City is 4,729,400 VND).
Social insurance: Under Clause 8, Article 42 of Decision 595.
For employees who stop working under the provisions of law and still receive wages, they must pay insurance premiums according to the salary they received during the time of the job stoppage. These types of insurance include social insurance, health insurance, voluntary insurance, occupational disease – work accident insurance.
Therefore, the company conducted a notice of reduction of a social insurance premium based on the salary paid during the time of the job stoppage.
c. Alternately working or working from home (if the nature of the job can meet)
Still paying a full salary and paying social insurance for the employee as usual.
4. For employees who have to quit their jobs due to Corona disease (isolation, suspicion, infection)
Based on Official Letter No. 422/BHXH-CSXH on settling the social insurance regulation for employees who are subject to medical isolation for Corona epidemic prevention, they are entitled to sickness benefits.
In this case, the company does not pay wages while the employee is entitled to sickness benefits. The company will make a file for employees to receive sickness benefits following the law.