A corner of Pouyuen Vietnam Co.Ltd specialising in the production of sports shoes in Bình Tân District, HCM City. — VNA/VNS Photo Thanh Vũ

HCM CITY — PouYuen Vietnam Co.Ltd. will provide VNĐ165 billion (US$678 million) in financial aid for employees who will be laid off in September.

Each laid-off employee will be entitled to an amount equal to 0.8 months of salary for each year of service, and the average allowance for each employee will be VNĐ133 million, according to the HCM City Department of Labour, Invalids and Social Affairs.

The total amount the company will spend to support the laid-off employees is VNĐ165 billion.

Employees who have worked with the company for many years will receive the highest allowance of up to VNĐ379 million for each person. Those with the shortest working service will be paid nearly VNĐ19 million per person as the redundancy allowance by the company.

These employees will continue receiving salary, other benefits and social insurance payments until the company terminates their labour contracts.

Regarding this issue, Huỳnh Lê Như Trang, deputy director of the HCM City Department of Labour, Invalids and Social Affairs, said the department has directed the city's Employment Service Centre to promptly provide job opportunities for these laid-off employees.

The city's labour sector also continues to closely monitor and supervise the company's allowance payment for labourers.

PouYuen Vietnam, a unit of Taiwan-based Pou Chen Group, is among the largest employers in HCM City, with an estimated 40,000 workers. 

This is the third time this year that it has cut jobs due to a sharp drop in new orders.

Cù Phát Nghiệp, chairman of the Trade Union of Pouyuen Vietnam Company, said cases such as pregnant workers, those on maternity leave, nursing children under 12 months old; households in poverty, disabled workers; or cases within the same family will not be subject to labour reduction. 

In the previous two rounds of labour reduction, the company had cut jobs of over 8,000 workers. — VNS