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Temporary suspension of labor contracts due to Covid-19 outbreak

VGP – The time of labor suspension is not included in the time of labor contract implementation and will be added to term of labor contract.

May 14, 2020 1:46 PM GMT+7

Question: Due to Covid-19 pandemic, a company from Hai Phong city had to cancel operation and wage payment for workers. What are regulations on temporary suspension of labor contracts?


Article 32 of the 2012 Labor Code regulates five cases of suspension of a labor contracts including (1) the employee is called up for military service; (2) the employee is held in custody or detention in accordance with the criminal procedure law; (3) the employee is subject to a decision on application of the measure of consignment to a reformatory, compulsory drug detoxification center or compulsory education institution; (4) the female employee is pregnant in accordance with Article 156 of this Code; and (5) other cases as agreed upon by the two parties.

Due to the Covid-19 pandemic, the company suffers low revenue and is unable to operate and pay labor wage. However, the company and its employees are suggested to reach an agreement on labor contract suspension in a short term. 

Within 15 days since the expiry date of temporary labor contract suspension, these employees have to present themselves at working places and the employers have to let their employees back to work unless the two sides reached other agreements. 

The time of labor suspension is not included in the time of labor contract implementation and will be added to term of labor contract. 

Earlier, on April 9, the Government issued Resolution 42/NQ-CP on assistance for people affected by Covid-19 pandemic. Of seven groups of beneficiaries, labor workers losing jobs are given VND 1.8 million per month per person. 

The time of financial support is calculated from April 1, 2020 and is not expanded over three months./.