01 Apr COVID 19 | Salary Expenses – Challenges And Solutions
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Due to the impact of COVID 19 pandemic, businesses are faced with maintaining cash flow, jobs, and salary expenses. The first priority is retaining jobs and incomes for each employee, but there are plenty of solutions in order to downsize the labor and salary expenses costs that the CEO is forced to consider, such as job stoppage, suspension labor contract, contract termination labor contract …
- Suspension pay shall be considered based on the causes of work suspension (at the employer’s or employee’s fault or for an objective reason). If it’s employee’s fault, he/she is not entitled to payment of wage. If the fault is from the employer, the employee is entitled to payment of the full wage;
- Due to the COVID 19 pandemic, the wage for work suspension must be agreed by two parties but must not be lower than the regional minimum wage stipulated by the Government.
- Due to the affection of COVID 19 pandemic, production needs are not provided enough for employee to work. Employers may temporarily assign an employee to perform a job which is not stated in the labor contract. However, the assignment does not exceed 60 accumulated workdays within one year, unless otherwise agreed by the employee. The employer shall inform the employee at least 3 working days in advance. If the wage for the new job is lower than the previous wage, he/she is entitled to the previous wage for 30 working days. The wage for the new job must be at least 85% of the previous wage but not lower than the regional minimum wage stipulated by the Government.
- Enterprises may suspend a labor contract temporarily with employee as agreed upon by the two parties. The temporary suspension of the labor contract shall be made in an agreement which must contain period of suspension: the start time and the end time of the suspension period; Within 15 days after the date of expiration of the employment contract suspension, the employee must be present at the workplace and the employer must reinstate the employee.
- As a result of this pandemic, the enterprises, though having applied every remedial measure, has to scale down production and cut jobs. The employers have a right to unilaterally terminate labor contracts. Nevertheless, this termination must be informed to employees by employers in advance.
For having the above incentives and supports, each business needs to meet specific conditions and records. VIVA provides free support to businesses affected by the relevant procedures to apply these new rules and policies.
In addition, VIVA experts are always ready to consult about your cases and situations with our real-time experiences and professional in business law – tax and accounting – labor and salary expenses – corporate finance – office administration, etc. Free online and helpful solutions for entrepreneurs.
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