Can Employer Terminate the Labor Contract with Employee Due To Covid 19 Outbreak?

Due to intricate occurrence of Covid 19, many enterprises are forced themselves to reduce the number of employees for maintaining the operation financially. Specifically, the employer has to make difficult decision to terminate the labor contract with the employee. The termination of the labour contract has to be considered carefully because of potential legal risks brought up which dispute lawyers in labour should be consulted before execution.  Within this post, we are not trying to resolve all cases but only aiming to brief some matters of concern for preparation.

The employer could refer to the regulation in the Labor Code which allows “an employer may unilaterally terminate a labor contract if as a result of natural disaster, fire or another force majeure event as prescribed by law, the employer, though having applied every remedial measure, has to scale down production and cut jobs. Force majeure in this case is understood as (i) Enemy-inflicates destruction, epidemics (ii) Relocation or narrowing of the production and business sites, at the request of competent State agencies.

In particular, after applying corrective measures, over the time, considering enterprise’s financial potential is insufficient as well as the business production is reduced significantly due to epidemic, the employer may consider unilaterally terminate labor contract with employee. However, employer still have to abide by or ensure the rights to employee regarding the interests which employee is entitle to receive when being unilaterally terminated labor contract includes salary, severance allowance, social insurance, payment for untaken leave days, the tax payment which employer must paid for employee. Besides, employer also is subject to pay a compensation if consented by both sides are employer and employee.

Firstly, employer is obliged to pay salary to employee timely and fully as in the agreed labor contract by both parties;

Secondly, employer is responsible for paying the severance allowance to employee whom has worked regularly for full 12 months or longer at the rate of half of a month’s wage for each working year.

Thirdly, social insurance, employer is responsible for the fulfill payment of social insurance and perform the closing insurance book for employee after terminate the labor contract according to the law of social insurance.

Fourthly, if the income of employee subject to personal income tax, employer must extract from the income of employee to submit the tax to tax agency according to law on personal income tax.

If the client needs any other information or requires for further advice, our lawyers at ANT Lawyers inVietnam will be available for service.

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Procedures for Issuance of an Export Permit for Medical Masks During the Prevention and Control of Covid-19 Epidemic Period

On March 11, 2020, Decision 868/QD-BYT of the Ministry of Health stipulates the issuance of export permits for medical masksin the period of preventing and controlling Covid-19. This Decision applies to agencies and organizations assigned by the Government to export medical masks for the purpose of international aid and assistance under Clause 1 of Resolution No. 20/NQ-CP of February 28, 2020 of the Government.

Accordingly, the Ministry of Health applies the export licensing regime for medical masks in the stage of COVID-19 disease prevention and only allows export for the purpose of international aid and assistance of the Government of Vietnam. Maximum of 25% of output for export, 75% of output for domestic disease prevention and control.

Medical masks must meet the minimum standards of TCVN 8389-1:2010; TCVN 8389-2:2010; TCVN 8389-3:2010 and has a circulation number issued by the competent health authority as prescribed.

A dossier of grant of a medical mask export permit includes: A written request for export license (01 original, made according to form No. 01 promulgated together with this Decision); Valid copies of documents of the Government, the Prime Minister or notices of the Government Office on the assignment of export of medical masks for the purpose of international aid and assistance. For effective preparation of dossiers, it is suggested to consult with import, export and customs lawyers whom specialize in international trade and government regulations.

Within 01 day (within 24 hours) after receiving the complete and valid dossier of the unit, the Department of Medical Equipment and Health Works under the Ministry of Health considers granting an export permit. In case of refusal to grant a permit, the Ministry of Health shall issue a written reply clearly stating the reason. The export permit is sent to the unit requesting the export to submit to the Customs Office when carrying out export procedures.

The Decision takes effect from the date of signing, the unit assigned by the Government to export medical masks is only granted the medical mask export permit when it has all valid dossiers as prescribed. This is to ensure domestic masks for the prevention and control of domestic epidemics.

The changes of laws will be monitored by ANT Lawyers - A law firm in Vietnam.  For advice or service request, please contact us via email ant@antlawyers.vn or call +84 28 730 86 529.

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What Activities Being Allowed Under Social Isolation in Vietnam in Directive No. 16?

On Mar 31^st, 2020, the Vietnam Prime Minister has issued a directive on social isolation to implement some urgent measures to prevent and control Covid-19 epidemic.  There have not such incidents in the past therefore it is unclear on enforcement in legal implementation.  In our opinions, this directive is more about suggested voluntary actions of each individual.

In summary, according to the directive, social isolation is applied throughout Vietnam from Apr 1^st to Apr 15^th, 2020.  It is not prohibited to go out of the house but it is suggested only people with real needs should go out i.e. to buy food, gas, medicine and other emergencies.  Government officer will be working from home. Private enterprises are also suggested to let people to work from home.  There are business places allowed to be opened for providing essential products, and services. If the manufacturing sites and offices need to be opened to continue its production or business activities, they have to follow safety instructions i.e. not gathering more than two people, keep the distance of minimum 2m, always wear masks, clean hands frequently, disinfect the work place.

From legal aspects, there will be many unforeseen negative issues and subsequent legal consequences in disputes in labour relations, disputes in contract performance, disputes in business transactions, disputes between individuals and government authorities… arisen due to conflicts resulted from the social isolation.  It is suggested that parties refer to the contracts, regulations and prepare for proper actions.  In this case, disputed parties consider to negotiate to achieve common grounds with each others.  If negotiation fails, disputes lawyers could be referred to for prior consultations and further steps.

To learn more about the directive of the Vietnam Prime Minister, please refer to our translated version below by associates of ANT Lawyers.

DIRECTIVE on the implementation of urgent measures to prevent and control Covid-19 epidemic

The Covid-19 epidemic broke out globally, affecting over 72,000 people, nearly 3.5 million people died in over 200 countries and territories and there was no sign of stopping. In Vietnam, the number of cases is increasing rapidly day by day and there is a high risk of infection in the community. It is predicted that the disease will spread rapidly on a large scale, seriously threatening human life, human health and socio-economic of the country.

In carrying out the call of the General Secretary, President Nguyen Phu Trong, with the spirit of putting great importance to the health and life of the people above all, to continue to proactively prevent and control epidemics, Prime Minister The Government requested ministries, ministerial-level agencies, government-attached agencies and People’s Committees of provinces and centrally-run cities to concentrate on implementing the proposed epidemic prevention measures, especially Directive No. 15/CT-TTg March 27, 2020, in compliance with the instructions of the National Steering Committee for Covid-19 prevention and control, effective implementation of the following urgent measures:

1.To perform social isolation within 15 days from 0:00 on April 1^st, 2020 on a national scale according to the principle that the family is isolated from the family, the village is isolated from the village, the commune is isolated from the commune, the district is isolated from the district, the province is isolated from the province, workshops, manufacturing plants must ensure a safe distance, wear masks, disinfect according to regulations. Request people to stay at home, only to go out in case of necessity such as buying food, medicine, emergency, working at factories, production establishments, service-providing establishments and essential goods without being shut down and other emergency cases; strictly observe the minimum distance of 2m when communicating; do not concentrate more than 2 people outside the workplace, school, hospital and in public places.

The Prime Minister asked the entire population to voluntarily abide by the requirements, measures to prevent and control epidemics, actively participate in voluntary medical declaration, to fully implement measures to protect themselves and their families and participate responsibly with the prevention and control activities of functional agencies and the community; the heads of enterprises, production establishments, and goods and service business establishments are responsible for applying epidemic prevention and control measures at their establishments, ensuring the health and safety for employee.

2.The Ministry of Health, the Ministry of Public Security, the People’s Committee of Hanoi City and the People’s Committee of Ho Chi Minh City must be speedy, determined, mustering all resources and all measures to thoroughly handle “outbreak”at Bach Mai Hospital (Hanoi), Buddha Bar (Ho Chi Minh City); enlist every hour and every minute to trace and apply appropriate measures to all cases of risk, contact with patients and passers “outbreak”; continue to urge people to go back and forth through these “outbreaks” of medical reports and contact requests for testing. Request the Ministry of Public Security to coordinate with the health sector to make a list of people involved in the activities of Truong Sinh Company at risk of infection to monitor health, supervise, quarantine and promptly handle thoroughly source of the disease.

Relevant People’s Committees of provinces and cities closely coordinate with Ministries and 2 Cities to perform this task well. Carry out family isolation, medical declaration for classification, testing and concentrated isolation if necessary for those who have been to and from Bach Mai Hospital since March 12^th, 2020; assign grassroots administrations to organize close supervision at each family.

The Ministry of Public Security and the provincial People’s Committee continue to urgently carry out medical review and examination, update the health status of people who have entered from March 8^th, 2020 but have not applied isolation; make a list of people who have direct contact and close contact to classify screening, apply appropriate isolation measures (concentrated isolation, at home, accommodation establishments).

3.State agencies and units shall arrange for officials, public servants and public employee to use information technology working at home; only those cases that are really necessary such as combat duty, duty of the agency, supply of essential goods and services, processing confidential documents and other necessary tasks are required to work at the office; strengthen online meeting organization. The head of the organization is responsible for the infection of officials and employees because of not strictly observing the regulations on prevention and control of epidemics at the workplace.

4.The Ministry of Transport and People’s Committees of provinces and cities shall direct basically stop public passenger transport activities. Minimize the movement from one locality to another; stop moving from epidemic areas to other localities, except for special cases due to official duties and cases of provision of food, foodstuffs, necessities, shuttle buses for workers and experts of businesses, transporting production materials.

5.To assign the Ministry of Health:

a) Direct hospitals to implement strict procedures and management to avoid cross-contamination in hospitals; strictly control, require mandatory medical declaration for patients, family members, caregivers; only one carer per patient; stop visiting patients at health facilities. There are strict rules on admitting patients, not allowing an infected individual to affect the operation of the entire hospital.

b) Propose specific mechanisms and policies to support domestic enterprises in manufacturing medical equipment and instruments, especially ventilators, patient monitors, infusion machines, dialysis machines, reporting Deputy Prime Minister Trinh Dinh Dung directed.

c) Report to the Prime Minister the options, scenarios and emergency response in case of epidemic emergencies in the afternoon of March 31^st, 2020.

d) Organize and arrange the continuation of medical examination and treatment at Bach Mai Hospital (Hanoi), ensuring safety for health workers, health workers and people at the request of the Steering Committee and the Ministry of Health.

d) Review and handle the recommendations of the Hanoi People’s Committee, support and create conditions for Hanoi to control epidemics in the locality.

6.The Ministry of Health shall synthesize and periodically publish 2 times/day positive test results in localities, ensuring accuracy.

7.Temporarily close the main and secondary border gates for passersby from 00:00 April 1, 2020 on the border lines with Laos and Cambodia. Strictly control the entry through international border gates on road border routes; All immigrants from Laos and Cambodia must be concentrated in isolation for 14 days.

8.The Ministry of Defense shall direct, organize and expand concentrated isolation facilities, separate new and isolated cases which are not isolated; strengthening the management of trails and openings on border routes.

9.The Ministry of Public Security shall intensify directing the assurance of order and security, preventing crimes, especially in rural areas.

10.The Ministry of Finance shall direct the General Department of Customs to handle problems related to the export of cloth masks; Require insurance businesses not to introduce and deploy insurance packages related to Covid-19 epidemics.

11.The ministries, branches, localities and the press agencies continue to promote information and propaganda in support of the people’s health protection policy, rectify a number of headlines that cause confusion and misunderstandings. The person in charge of prevention and control of non-verbal epidemic causes panic among the people.

12.The Ministry of Industry and Trade and the People’s Committees of localities pay attention to ensuring essential commodities, food and foodstuffs for the people.

Signed by Vietnam Prime Minister.

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