Fighting Covid-19 Supportive Measures For Employees And Enterprises In Vietnam

RHTLaw Vietnam

12th June 2020

The current novel coronavirus (Covid-19) outbreak, which began in December 2019, presents a significant challenge for the entire world. Vietnam has declared COVID-19 nationwide epidemic. Measures to curb the spread of the coronavirus such as travel restrictions, events cancellation, and prohibition on gatherings have cut manufacturing and domestic demand sharply in Vietnam. The Vietnam Government has, however, been acting decisively and unveiled measures for employees and enterprises, addressing concerns essentially about economic implications as well as ensuring business continuity. In the Legal Updates, we continue to address frequently asked questions from employers across industries in light of the continuing Covid-19 crisis. As the situation continues to evolve, we will further update our guidance as appropriate.

Labour restructuring

Covid-19 pandemic is having an enormous impact on the employment relationships. Employers have to address the ability to maintain employment relationships or make layoff decisions. As temporary measures, the following can be taken into account:
(1) reducing working hours and/or salary; or applying unpaid leaves, as for the existing work positions;
(2) assigning employees to different jobs;
(3) temporarily ceasing work; or
(4) temporarily suspending the performance of employment contracts.

It is required to comply with provisions under the Labour Code on new wage, new employment term, advance notification and other requirements. Please refer to the table 1 below for more details on financial liabilities.

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RHTLaw Vietnam

Vietnam
http://www.rhtlaw.com.vn

RHTLaw Vietnam offers clients access to a network of over 2000 legal professionals across various offices in Asia through RHTLaw Asia and the ASEAN Plus Group (APG).

The Firm traces its beginnings in 2005 when a team of experienced Vietnamese lawyers came together to set up what was formerly known as PBC PARTNERS. A subsequent joint venture in 2016 with the 6th largest law firm in Singapore led to a brand relaunch and the firm is now known as RHTLaw Vietnam. It is part of the RHTLaw Asia network.

Since then, the Firm has experienced strong growth and is now recognised as a leading law firm in Vietnam. RHTLaw Vietnam is also a member of APG which is a group of full-services law firms that blends the best of knowledge, culture and international expertise. APG firms have a strong presence in Asia with offices located in Singapore, China, Indonesia, Vietnam, South Korea, Philippines, Thailand, Taiwan and Malaysia.

Our model is driven by the focus on helping clients succeed, which translates to clear and precise solutions with high-level legal and commercial insights. We proactively grow our practice in tandem with regional and international fast growing industries and areas like Banking & Finance, Inward & Outward Investment, Intellectual Property, Trading & Commerce, Real Estate & Construction, Telecommunications, Tax, Employment and Dispute Resolution.

With offices in Ho Chi Minh City and Hanoi, RHTLaw Vietnam is recognised as a go-to law firm in Vietnam.

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Fighting Covid-19 Supportive Measures For Employees And Enterprises In Vietnam

RHTLaw Vietnam

12th June 2020

RHTLaw Vietnam

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