Instruction No. 05/HD-LDLD dated March 31, 2020 on regarding payment of trade union fees and trade union dues

INSTRUCTION

REGARDING PAYMENT OF TRADE UNION FEES AND TRADE UNION DUES

Pursuant to the Government’s Decree No. 191/2013/ND-CP dated November 21, 2013 on elaboration of finance for Trade Union; the Government’s Decree No. 143/2018/ND-CP dated October 15, 2018 on elaboration of the Law on Social Insurance and the Law on Labor Safety and Hygiene concerning compulsory social insurance for expatriates working in Vietnam;

Pursuant to clause 6, Article 23, Decision No. 1908/QD-TLD dated December 19, 2016 of the Presidium of Vietnam General Confederation of Labor: “Trade unionists on social insurance allowance for at least 1 month are not required to pay trade union dues; trade unionist who are unemployed, have no income, or on personal unpaid leave for at least 1 month are not required to pay trade union dues";

Pursuant to Official Dispatch No. 494/TLD dated April 9, 2019 of Vietnam General Confederation of Labor on payment of trade union fees for expatriate workers;

Pursuant to Directive No. 11/CT-TTg dated March 4, 2020 of the Prime Minister on urgent objectives and solutions for assisting businesses facing difficulties and assurance of social welfare amid Covid-19 pandemic;

Pursuant to Official Dispatch No. 797/LDTBXH-BHXH dated March 9, 2020 of the Ministry of Labor, War Invalids, and Social Affairs on guidelines for delayed contribution to pension and death funds by enterprises hit hard by Covid-19;

Implementing Official Dispatch No. 245/TLD dated March 18, 2020 of Vietnam General Confederation of Labor on delayed payment of trade union fees by enterprises hit hard by Covid-19;

Pursuant to Official Dispatch No. 553/BHXH-QLT dated March 23, 2020 of Social Security of Ho Chi Minh City on temporary guidelines for delayed contribution to pension and death funds;

The Standing board of Confederation of Labor of Ho Chi Minh City hereby provides certain instructions for payment of trade union fees and trade union dues as follows:

1. Payment of trade union fees for expatriates working in Vietnam.

Pursuant to Article 5 of the Government’s Decree No. 191/2013/ND-CP and clause 1, Article 2 of Decree No. 143/2018/ND-CP:

+ The employer that employs expatriate workers subject to compulsory social insurance as per the law must pay trade union fees.

+ The trade union fee equals 2% of salaries of all employees as the basis for payment of social insurance premiums.

+ Commencement date of payment of the trade union fee: from December 1, 2018, on the monthly basis, and tied to the payment of social insurance premiums for workers.

2. Delayed payment or remission (if any) of trade union fee payment made by enterprises hit hard by Covid-19

According to the request of the enterprise and documents enclosed in clauses 2.1 and 2.2, the Standing board of the superior trade union shall decide as follows:

2.1 Delayed payment of trade union fees.

- Regulated entities of Official Dispatch No. 797/LDTBXH-BHXH dated March 9, 2020 of the Ministry of Labor, War Invalids and Society and Official Dispatch No. 553/BHXH-QLT dated March 23, 2020 of Social Security of Ho Chi Minh City, including:

+ Enterprises with at least 50% of number of employees who have participated in social insurance must be temporarily laid off out of the staff headcount before the business suspension.

+ Enterprises that suffer losses of more than 50% of the total value of property caused by the pandemic (regardless of the value of property being land).

The above-mentioned enterprises must obtain certification documents from the social security agency as prescribed in Official Dispatch No. 553/BHXH-QLT dated March 23, 2020 of Social Security of Ho Chi Minh City.

- The trade union fee eligible for delayed payment: The trade union fee payable in the first half year of 2020.

- Delay period: until June 30, 2020. After this time, if Covid-19 shows no declining sign and businesses continue to be struggling, the delay period may extend to December 31, 2020.

2.2 Remission of trade union fees.

If an enterprise hit hard by Covid-19 is eligible for remission of social insurance premium with certification of the social security agency, it shall pay the trade union fee based on the salary fund as the basis for payment of social insurance premium eligible for remission.

3. Delayed payment or remission (if any) of trade union due payment made by trade unionists in enterprises hit hard by Covid-19

According to a request made by the executive board of the grassroots-level trade union and enclosed documents specified in clauses 3.1 and 3.2, the Standing board of the superior trade union shall decide the payment time or remission of trade union dues for trade unionists as follows:

3.1 Delayed payment of trade union dues.

- Regulated entities: trade unionists in grassroots-level trade unions in the business sector hit hard by Covid-19 who have salaries suspended or delayed.

- Grounds for determination: notices or decisions on suspended or delayed payment of salaries made by the employer, a list of trade unionists who apply for delayed payment of trade union dues with the confirmation of the grassroots-level trade union.

- The trade union due eligible for delayed payment: the trade union due payable in the first half year of 2020.

- Delay period: until June 30, 2020. After this time, if Covid-19 shows no declining sign and trade unionists continue to be struggling, the delay period may extend to December 31, 2020.

3.2 Remission of trade union dues.

Regulated entities: Trade unionists who are struggling due to Covid-19 in the following cases are eligible for remission of trade union dues equivalent to the period of pay cuts and the pay cut amounts:

- Reduction in trade union dues: trade unionists experiencing pay cuts.

- Exemption from trade union dues: trade unionists who:

+ on the unemployment insurance for at least 1 month.

+ have no job and no salary.

+ have been laid off for at least 1 month without pay.

- Grounds for determination: notices or decisions made by the employer, a list of trade unionists who apply for remission of trade union dues with the confirmation of the grassroots-level trade union; certification of the regulatory body on the level of remission of the salary as the basis for payment of the social insurance premiums of trade unionists (certification documents of the social security agency for the enterprise; decision on provision of unemployment benefit made by the competent authority, etc.)

4. Information and reports:

On a monthly basis, the trade union at levels shall release statistics on:

+ The number of enterprises eligible for delayed payment or remission of trade union fees as prescribed in clauses 2.1 and 2.2 as above: using Form No. 1.

+ The number of trade unionists eligible for delayed payment or remission of trade union dues as prescribed in clauses 3.1 and 3.2 as above: using Form No. 2.

The foregoing documents shall be sent to Confederation of Labor of Ho Chi Minh City (via Board of Finance) before the 10th of every month, from April 1, 2020 till further notice.

Difficulties that arise during the implementation of this document should be reported to Confederation of Labor of Ho Chi Minh City (via Board of Finance at 028.38.290.836) for consideration./.