Ho Chi Minh City: With each year of work supported with 0.8 months of salary, the highest amount a laid-off Pouyuen worker receives is 475 million VND, the lowest is 15 million VND.
On the morning of May 20, Pouyuen Vietnam Co., Ltd. in Binh Tan District conducted the first phase of agreements with 4,430 workers, who will officially quit their jobs on June 24.
The highest level of support is for employees with more than 20 years of seniority and in management positions. New employees with less than 5 years of service will receive a subsidy of 15-30 million VND. The average support level for each person is nearly 130 million VND. Thus, businesses will spend about 570 billion VND to support employees affected by the first round of layoffs.
In the group of laid-off workers, workers with over 20 years of seniority accounted for 14.9%. Workers with 10 to 20 years of seniority accounted for 68.3%, 5-10 years accounted for 12.7%, and only 4.1% were new workers with less than 5 years.
Workers at PouYuen Company, Binh Tan District after work, 2021. Photo: Quynh Tran
From now until June 24, workers do not have to go to work at the factory but still receive full salary and full social insurance. The company will convert it into money to pay workers for unused annual leave. It is expected that on June 30, they will receive support payments via bank accounts.
After this phase, Pouyuen Vietnam will continue to negotiate to terminate the contracts of more than 1,200 workers with similar support policies. The total number of workers reduced in the two phases is about 5,700 people. Previously, in February, Pouyuen had cut 2,358 people also due to difficult orders. In June 2020, more than 2,800 people at the company were laid off.
Pouyuen Vietnam Co., Ltd. is a member of Taiwan's Pou Chen International Group, a shoe manufacturing company. Operating in Ho Chi Minh City since 1996, Pouyuen is the largest employer in the city, with a peak of nearly 90,000 employees. Currently, this number is more than 46,000.
According to Mr. Nguyen Van Lam, Deputy Director of the Department of Labor, War Invalids and Social Affairs of Ho Chi Minh City, the support level of 0.8 months' salary for each year of work is higher than the legal regulations on severance pay. Accordingly, when terminating a labor contract, the enterprise must pay the employee for the working time from 2009 onwards, with each year being half a month's average salary of the 6 consecutive months before the leave.
In addition to the company's support, laid-off workers also receive unemployment insurance benefits for their working time from 2009 to present. For each year of work, workers receive one month of benefits and no more than 12 months. The benefit is calculated at 60% of the average monthly salary for unemployment insurance contributions of the 6 consecutive months before the leave. Workers will receive unemployment insurance monthly until they find a new job.
Le Tuyet
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