Can social insurance be paid in case of suspension of a labor contract?

Question:

Dear lawyers of PL&Partners, due to the COVID-19 pandemic, my company was forced to suspend operations and they notified us that our labor contracts would be suspended for 2 months, from August 1^st, 2021 and we would have no salary in these 02 months. So, my question is: Is my company entitled not to pay salary? Shall the company pay me social insurance in these 2 months? Hope to receive your answer soon. Thank you.

Answer: PL & Partners would like to thank you for trusting and sending your question to us. For your question, we would like to reply as follows:

First of all, can the employees have SALARY during the suspension period of the labor contracts?

Pursuant to clause 2 Article 30 of Labor Code 2019:

“2. During the suspension period of the labor contract, the employee shall not receive the salary and benefits specified in the labor contract, unless otherwise agreed by both parties or prescribed by law.”

During the suspension period of the labor contract, the employee shall not receive the salary and benefits specified in the labor contract.

Compared to your case, during the suspension period of your labor contract, your Company is entitled to stop paying your salary in accordance with the above provision.

Secondly, can the employers pay the SOCIAL INSURANCE for employees during the suspension period of the labor contracts?

Pursuant to clause 4 Article 42 of Decision 595/QD-BHXH:

“4. An employee who does not work or receive salary for at least 14 working days in a month is not required to pay social insurance contributions this month. This period shall not be included in the payment period of social insurance contributions.”

Compared to your case, because your labor contract was suspended (not working and not receiving salary) in 02 months (more than 14 working days), you and your company are not required to pay social insurance during these months. Besides, this period shall not be included in the payment period of social insurance contributions.

Note:

Because your labor contract had to be suspended due to the impact of the COVID-19 epidemic, you shall be supported by the competent authority for the suspension period.

According to Decision No. 23/2021/QD-TTg of the Prime Minister and in relation to your case: Suspension of the labor contract for 2 months from August 1^st, 2021.

You will be entitled to a lump sum support of VND 3,710,000. And;
Additional support:

VND1,000,000: for pregnant employees;
VND1,000,000: per child (support only for a parent or a substitute carer): if the employee is raising a biological or adopted child or taking care of a child under 06 years old.

For more information: https://hoidapluat.net/chinh-sach-ho-tro-nguoi-lao-dong-gap-kho-khan-vi-dich-covid-19/