ACDC’s Law Department advises:
Question: A few weeks ago, the Board of Directors informed all employees in my company that it did not earn much revenue as well as profit. The company therefore asked some workers to stop working because their departments had no work to do. In this case, how is the employee's severance pay granted? Thank you!
Answer by ACDC’s Law Department:
According to Article 99 of the 2019 Labor Code on severance pay, in case of a suspension of work, the employee shall receive a severance pay as follows:
Case 1: If the suspension is at the employer’s fault, the employee shall be paid the full salary under the employment contract;
Case 2: If the suspension is at the employee’s fault, the employee shall not receive the salary. If this leads to suspension of work of other employees in the same unit, they shall be paid an amount not smaller than the statutory minimum wages;
Case 3: In case the suspension is caused by an electricity or water supply issue that is not at the employer’s fault, or by a natural disaster, fire, major epidemic, hostility, relocation requested by a competent authority, or for economic reasons, both parties shall negotiate the salary as follows:
- If the suspension does not exceed 14 working days, the salary shall not fall below the statutory minimum wages;
- If the suspension is longer than 14 working days, the salary shall be negotiated by both parties and the salary for the first 14 days must not fall below the statutory minimum wages.
Accordingly, the information you have provided is not sufficient to be processed. Thus, you should refer to the information above.
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