To: Departments of Labor, War Invalids, and Social Affairs of provinces or central-affiliated cities

Lately, due to the impact of the Covid-19 pandemic, the production and business of many enterprises have faced difficulties, some enterprises have had to suspend or scale down operations, some employees have been put on furlough stemming from the impacts of the pandemic, i.e. (i) the employees are subject to quarantine by orders of competent authorities; (ii) the employees live in lockdown areas by orders of competent authorities so they are unable to work; (iii) the employees have been put on furlough since their companies or departments/divisions are subject to suspension by orders of competent authorities; (iv) the employees have been put on furlough since their companies or departments/divisions are unable to operate. In order to make payment of furlough wages in accordance with the labor law, the Department of Labor Relations and Wages requests the Departments of Labor, War Invalids and Social Affairs to guide the enterprises in the provinces as follows:

1. The furlough wages shall be paid to employees as prescribed in Article 99 of the Labor Code in consideration of the causes of the furlough (due to the fault of the employer, or the employee, or due to objective reasons).

2. If an employee is put on furlough due to the direct impact of the Covid-19 pandemic, i.e. the employee is subject to quarantine by the order of competent authority; (ii) the employee lives in a lockdown area by the order of competent authority so he/she is unable to work; (iii) the employee is put on furlough since his/her company or department/division is subject to suspension by the order of competent authority; (iv) 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, his/her furlough wage shall be paid in accordance with clause 3 Article 99 of the Labor Code, in specific:

a) If the furlough period is less than or equal to 14 working days, the furlough wage shall be agreed upon by both parties but not less than the minimum wage.

b) If the furlough period is more than 14 working days, the furlough wage shall be agreed upon by both parties provided that the furlough wage to be paid for the first 14 working days is not less than the minimum wage.

Request the Department of Labor, War Invalids, and Social Affairs to give instructions to enterprises based on the foregoing guidance. Difficulties which may arise during the implementation should be reported to the Department of Labor Relations and Wages for consideration./.

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