Due to the pandemic, most if not all workers experienced work from home (WFH). In order to ensure the rights of employees, Hong Bang Law Firm would like to provide customers with legal issues related to salary, social insurance of employees working from home during the pandemic.

Can businesses get a salary reduction when employees work from home during the Covid-19 epidemic?

Pursuant to Art.95 of the Labor Code 2019 on the payment of wages to employees, the employer shall pay the employee a salary based on the agreed salary, labor productivity and quality of work performed.

Thus, the payment to employees is based on the agreed salary, productivity and quality of work performance, not on the working location. Therefore, if the employee’s productivity and work quality are equal or better than the productivity and quality when working at the enterprise, the enterprise must not reduce the employee’s salary but must pay the employee’s salary in full following labor contract.

Do workers who work at home overtime receive overtime pay?

With the current situation, many workers are still working hard even though working hours are over while working from home. However, employees need to understand the regulations on overtime to protect their rights.

What is overtime?

Overtime is the period of working outside the normal working hours as prescribed by law, collective labor agreement or labor regulations.

In addition, the normal working time shall not exceed 08 hours in a day and not more than 48 hours in a week.

Thus, if an employee works outside of the period specified in the enterprise’s internal labor regulations, it will be counted as overtime pay.

How is overtime pay calculated?

Following Art.98 of the Labor code 2019

Overtime pay, night work pay

An employee who works overtime will be paid an amount based on the piece rate or actual salary as follows:

• On normal days: at least 150%;
• On weekly days off: at least 200%;
• During public holidays, paid leave, at least 300%, not including the daily salary during the public holidays or paid leave for employees receiving daily salaries.
• An employee who works at night will be paid an additional amount of at least 30% of the normal salary.
• An employee who works overtime at night will be paid, in addition to the salary specified in Clause 1 and Clause 2 of this Article, an amount of at least 20% of the day work salary of a normal day, weekend or public holiday.
• The Government shall elaborate this Article.”

Is working from home covered by social insurance?

Pursuant to the provisions of Clause 26, Article 1 of Circular 06/2021/TT-BLDTBXH, the monthly salary on which social insurance premiums are based is the salary, salary allowance and other additional amounts. Therefore, if employees still work online and still receive salary, they are still subject to social insurance participation in accordance with the law.

Working from home but working while resting, do you have to pay social insurance?

Many businesses are implementing policies to reduce the working time of employees. For example: If an employee goes to work with a working schedule of 1 week, 3 days, 4 days off, do they have to pay social insurance?

According to the provisions in Clause 4 of Decision 595/QD-BHXH dated 14– 2017 then: “Employees who do not work and do not receive wages for 14 or more working days in a month shall not pay social insurance premiums for that month. This time is not counted to enjoy social insurance.”

Thus, there will be the following cases:

• Case 1: An employee who works while taking leave but this number takes 13 days or less in a month: Then he/she still has to pay social insurance premiums for that month.
• Case 2: While working while taking a break, but the number of days off is 14 or more days in a month but still receiving salary paid by the employer, the employee and the employer must pay social insurance premiums according to regulations.
• Case 3: While working while taking leave, but the number of days off is 14 or more days in a month but without salary paid by the employer, the employee and the employer are not required to pay social insurance premiums according to regulations.

If you need more detailed advice and answers as well as how to access this service, please contact directly our Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the toll free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

Wishing you and your family good health, peace, and success!

Best regards!