Enterprises join hands with workers to overcome the Covid-19 epidemic

The Covid-19 epidemic is currently severely affecting the world economy. In Vietnam, many businesses have a serious shortage of raw materials affecting production. The epidemic is not predictable and we do not know when it will end, so many businesses have come up with cost reduction options, in which personnel costs are causing the most headache for businesses. If they fire workers, they are afraid of legal risks and shortage of employees after the epidemic passes, as well as affecting the employer reputation in the labor market. At this point, business owners need to find an integral solution to both survive in difficult times and retain resources.

Agreement to share difficulties

It can be seen that the impact of the Covid-19 epidemic has caused personnel crises in some current companies, especially in small and medium-sized enterprises with little capital, not to mention a number of companies made loans and panicked trying to manage. Therefore, most companies choose to cut staff or reduce working hours and wages. For these cases, because the general market is difficult, workers can somewhat understand. However, the story to note is that the management should consider how to communicate with employees so they can really understand. The options below are arranged in increasing order of impact on employees for business owners to choose.

1. Make agreement on termination of labor contract:

On a voluntary basis, the company may negotiate with employees a financial support in its capacity for the employee to agree to end the employment relationship and seek new opportunities. This option is suitable in case the business owner considers to suspend business, dissolve or go bankrupt because he cannot revive the enterprise or needs to reduce part of its human resources. Article 36.3 of the 2012 Labor Code allows parties to freely agree to terminate a labor contract with or without a financial contribution.

2. Temporarily suspend the performance of labor contracts for a term:

The company negotiates with the employee to pay a sum or not to pay if the worker agrees. This plan will help businesses maintain labor relations with employees but can release the obligation to pay wages, benefits, insurance and personal income tax.

It also helps businesses do not have to re-recruit workers, while helping workers have a future job opportunity at the time of commencement of labor contracts. The legal basis for this option is Article 32 of the 2012 Labor Code.

3. Make agreement on payment of severance pay:

According to Article 98.3 of the 2012 Labor Code, a company is entitled to negotiate with workers to pay a severance pay. Accordingly, the severance pay may be agreed but not lower than the regional minimum wage in 2020 according to Decree 90/2019 / ND-CP (Region I: VND 4,420,000/month; Region II: VND 3,920,000/month; Region III: VND 3,430,000/month; Region IV: VND 3,070,000/month).

4. Make agreement on reduction of working hours and reduction of wages:

This option balances the interests of workers and the company according to the evolution of the epidemic and the production capacity of the company. To implement this plan, the company can base on Article 35 of the 2012 Labor Code to request amendments and supplements to a labor contract or sign an appendix of the contract to change working hours and wages over a period of time appropriate to the situation of the epidemic outbreak and the business plan of the company.

What can businesses achieve without cutting staff?

It is undeniable that the time of the epidemic is the time when thousands of businesses are worried about falling revenues, and many financial burdens are besetting entrepreneurs. If the business owner can find a solution to overcome difficulties at this time to keep the labor force, the workers can ensure income and indirectly stabilize the production force.

If businesses find a good solution so that they do not have to cut human resources, they will help build employers' image in the labor market. At the same time, keeping human resources at this time will help build a better labor relationship and do not take the cost of recruiting and training new people when the epidemic is over.

One of the ways to create value in the time when many departments and workers have free time is to perform training on professional skills, soft skills, improve work processes, focus on product research and new technology, testing options for working online, working from home, etc. In the digital economy, the company's most valuable strength and assets are talents and human resources who are good at teamwork.

According to The Saigon Times