DO EMPLOYEES RECEIVE SALARY IF BEING PUT ON FURLOUGH DUE TO SOCIAL DISTANCE?

In the past few months, the Covid-19 epidemic has extremely complicatedly taken place across the country. To prevent the spread of the Covid-19 disease in the community, many localities have had to implement social distancing measures according to the Government’s directive. During the implementation of social distancing, enterprises must suspend operations as required, resulting in employees having to take a long-time off work. The question “Do employees receive salary if being put on furlough due to social distance?” is one of the issues that many employees care and wonder about. In this article, Lac Duy & Associates will answer this question and provide you with some useful information about the above case.

Section 2 Official Dispatch 264/QHLDTL-TL of the Department of Labour Relations and Wages, requesting the Department of Labour, War Invalids and Social Affairs to guide enterprises in the area to implement payment of furlough wages to employees during furlough period due to Covid-19 pandemic for the following 4 groups of subjects:

• The employee is subject to quarantine by the order of competent authority;

• The employee lives in a lockdown area by the order of competent authority, so he/she is unable to work;

• The employee is put on furlough since his/her company or department/division is subject to suspension by the order of competent authority;

• The employee is put on furlough since his/her company or department/division is unable to operate as the owner or other colleagues has/have been quarantined or not returned to work yet.

Thus, if during the period of social distancing, the enterprise must suspend operation by the order of competent authority and the employee has to stop working, the enterprise is responsible for paying the furlough wages to employees. The furlough wage shall be paid in accordance with clause 3 Article 99 of the Labour Code, in specific:

“Both parties shall negotiate the salary as follows:

• If the suspension does not exceed 14 working days, the salary shall not fall below the statutory minimum wages.

• If the suspension is longer than 14 working days, the salary shall be negotiated by both parties and the salary for the first 14 days must not fall below the statutory minimum wages.”

Currently, the statutory minimum wage in 2021 applied under Decree 90/2019/ND-CP is as follows:

The above is some information on the payment of furlough wages for employees during furlough period due to Covid-19 pandemic. In case you need more detailed information or other information in a related field, readers can contact Lac Duy & Associates for timely advice and support.