In certain cases, the company is forced to suspend business for some time. The business suspension for 1 calendar year is not subject to corporate income tax if no revenue is generated. However, at present, there are still many questions related to whether to pay wages when suspending business? Find out with Lawyer X about “Does business suspension have to pay employees?” through the following articles:
Legal grounds
– Enterprise Law 2020.
Consulting content
Does business suspension have to pay salary?
According to Clause 3, Article 206 of the Enterprise Law 2020, for employees during the temporary suspension of business, the enterprise must reach an agreement with the employee on benefits and employment such as salary waiting for work, and temporary suspension. perform the contract because the company suspends business, etc. When the business suspension period expires, the company must continue to perform the labor contract with the employee.
Thus, during the period of business suspension, the employee must enjoy certain being based onis of an agreement with the employer. Negotiate on salary waiting for work, waiting for the business’s re-operation time. Or agree to wait for the next working term, allowance, certain compensation.
If the case does not resolve the complaint, you can go to a third agency; that is the People’s Court to conduct lawsuits according to the current civil procedure law.
Does the company suspending business have to pay social insurance?
According to the provisions of Clause 3, Article 206 of the Enterprise Law 2020; during the temporary suspension of business, the enterprise must complete the performance of the contract signed with the employee; unless otherwise agreed by the enterprise and the employee.
According to the above provisions, when temporarily suspending business activities; must continue to pay social insurance premiums for employees; if the enterprise has no other agreement with the employee. If the employee case with the employer; there is an agreement not to pay social insurance during the period of business suspension; will be resolved differently.
Thus, when your company suspends business; without any other agreement on the payment of social insurance; so your company still has to pay insurance for maternity sickness fund and labor accident fund; occupational disease. The fact that your company does not have an agreement with employees; but requires employees to fully pay 100% of the insurance money; including the amount the employer should have paid; is against the law.
Rights of employees when the enterprise suspends business; according to this regulation, it is the employee who is completed by the enterprise; the performance of the labor contract signed with the employee. Unless otherwise agreed by the enterprise and the employee.
Business suspension service of Lawyer X
Business suspension is a necessary solution for businesses when they cannot continue doing business for a specified period. Suspending business quickly will help businesses avoid unnecessary costs. Meanwhile, the business suspension process is quite complicated; With many procedures, if businesses do it themselves, they will face many risks. Using the business suspension service of Lawyer X will make you feel secure in each stage of implementation:
– Advice on the most necessary documents and procedures for business suspension
– Compiling registration dossiers; providing providers with the most appropriate and latest forms.
– Acting as a representative on behalf of customers to submit documents, receive and respond to appraisals, and pay fees.
– On behalf of the client handle the processing of records.
– Supplement or correct the dossier at the request of the specialist in charge of the application (if any).
Please see more:
– In Vietnam, can public employees establish a business?
– Procedures for business suspension for FDI enterprises in Vietnam
Contact LSX Lawfirm
Finally, we hope this article is useful for you to answer the question: “Does business suspension have to pay wages to employees?”. If you need any further information, please contact LSX Law firm: at +84846175333 or Email: [email protected]
Frequently asked questions:
If the taxpayer suspends business for less than a full calendar year, the enterprise must still submit the financial statement, the CIT finalization declaration, and the PIT finalization declaration if the enterprise has paid for the import of its employees.
The notice of business suspension is mandatory. Suspending business without notice will be administratively sanctioned with a rather large amount. And if you do not notify, the business will still have to bear the obligations of insurance, employee salary, etc. Therefore, when temporarily suspending business, it is advisable to notify to avoid loss of many costs.
Conclusion: So the above is Does business suspension have to pay wages to employees?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
