Recently, the Vietnam Bao Yuan Shoe Factory announced that it would terminate the labor contracts with 2,786 workers. Specifically, workers will receive full pay for 45 days starting on June 20 – from now until the official termination of the labor contract (August 5-8).
Screenshot of the original report
Vietnam Bao Yuan Co., Ltd. was established in 1996 and is engaged in processing various types of sports shoes. It currently has more than 62,000 workers, 80% of whom are female workers. According to the company, due to the impact of the new coronavirus epidemic, the company’s orders have dropped sharply.
Under the overall difficult situation, from April this year to the present, the company has scheduled production and arranged for workers to take turns to wait for work, but the order situation by the end of the year is still not optimistic.
Chinese report screenshot
As a result, the company had to terminate the labor contract with 2,786 workers. The matter was reported to the grassroots union and agreed. Among the above-mentioned laid-off workers, there are no poor households, disabled workers, or workers whose labor contracts cannot be terminated according to the law.
Pan Wenmian, manager of the municipal social insurance agency, confirmed that Baoyuan Company complies with relevant social insurance regulations. During the past period, the company did not default on social security, medical and unemployment insurance premiums. Every month, the company pays about 150 billion yuan in social security, medical insurance and unemployment insurance. Once the labor contract is terminated, the employee will be accounted for by the municipal social insurance agency and all systems will be fully resolved as soon as possible.
On the afternoon of June 20, Do Dinh Thien, Vice Chairman of the Pingtan District People’s Committee, said that ensuring the right to full payment for laid-off workers (higher than national regulations). In particular, the maximum severance pay is VND 300 million per person and the minimum is VND 3 million per person (new hire); the average allowance is VND 60-70 million per person.
Baoyuan Company currently has more than 62,000 employees and specializes in the processing of export sports shoes. According to the provisions of Article 38, Paragraph 1, Item c of the Labor Law (due to natural disasters, fires or other force majeure reasons stipulated by law), the labor force of Baoyuan Company has been reduced. Employers have pursued all remedies but must still reduce production and reduce workplaces.
As early as June 2020, PouYuen Company stated that due to the impact of the Covid-19 epidemic, the company was not allowed to operate due to reduced orders and reduced labor force. No production reduction. The total number of employees is expected to decrease by nearly 6,000. In particular, the number of layoffs on the morning of June 20 was 2,786; it is expected that the number of employees will continue to be reduced by approximately 3,000 by August 2020.
Do Dinh Thien, Vice Chairman of Binh Tan City People’s Committee, filed a petition with the Ho Chi Minh City Tax Department to consider workers’ proposal not to impose a 10% tax on benefits paid by companies. % personal income tax. It is recommended that the social insurance in Ho Chi Minh City prioritize documents and policies for those who have been laid off.
Phan Van Mun, director of the Social Insurance Bureau of Ho Chi Minh City, confirmed that Bao Yuan Company complies with the social insurance law and does not owe social insurance, health insurance, or unemployment insurance. Therefore, when an employee terminates the labor contract, the settlement and settlement of the social insurance system will be carried out very quickly and fully, and the employee’s rights are ensured. </p
