Are businesses required to give Lunar New Year bonuses to probationary employees? Can businesses terminate probationary contracts right before the Lunar New Year?
What is the maximum probationary period?
According to Article 25 of the Labor Code 2019, the maximum probationary periods are as follows:
Probationary Period
The probationary period shall be agreed upon by both parties based on the nature and complexity of the job but can only be applied once for a specific job and must ensure the following conditions:
1. Not exceeding 180 days for jobs of enterprise managers in accordance with the Law on Enterprises, the Law on Management and Use of State Capital Invested in Production and Business at Enterprises;
2. Not exceeding 60 days for jobs with professional titles requiring professional or technical qualifications at the collegiate level or higher;
3. Not exceeding 30 days for jobs with professional titles requiring intermediate professional or technical qualifications, skilled workers, or operational staff;
4. Not exceeding 6 working days for other jobs.
Thus, the probationary period agreed upon by both parties shall depend on the nature and complexity of the job but can only be tested once for a specific job and must meet the following conditions:
- Not exceeding 180 days for jobs of enterprise managers.- Not exceeding 60 days for jobs with professional titles requiring professional or technical qualifications at the collegiate level or higher.
Are employers obligated to reward probationary employees during Tet? Can employers terminate probationary contracts right before Tet?
Are companies obligated to reward probationary employees during Tet?
According to Article 104 of the Labor Code 2019 regarding Tet rewards for probationary employees as follows:
Bonuses
1. Bonus is the amount of money or assets or other forms awarded by the employer to the employee based on the business results, work performance, and job completion level of the employee.
2. The bonus regulations shall be decided by the employer and publicly announced at the workplace after consulting the representatives of the employees at the grassroots level, where these representatives are available.
Thus, Article 104 of the Labor Code 2019 stipulates that bonuses are amounts of money, assets, or other forms awarded by employers to employees based on business results and the performance levels of the employees.
The Tet Lunar New Year bonus policy will be decided by the employer and publicly announced at the workplace after consulting the representatives of the employees at the grassroots level.
Furthermore, if employers decide to reward Tet Lunar New Year 2023 to probationary employees, the reward is not required to be monetary.
Instead, employers can use assets or offer the Tet Lunar New Year 2023 reward in other forms based on business results.
Are companies allowed to terminate probationary contracts right before Tet?
Based on Article 27 of the Labor Code 2019, the conclusion of the probationary period is specified as follows:
Conclusion of the Probationary Period
1. At the end of the probationary period, the employer must notify the employee of the probation results.
If the probation meets the requirements, the employer shall continue to implement the labor contract already concluded in cases where probation was agreed upon in the labor contract or shall conclude a labor contract in cases where a probation contract was concluded.
If the probation does not meet the requirements, the labor contract that has been concluded or the probationary contract shall be terminated.
2. During the probationary period, either party has the right to cancel the probationary contract or the labor contract already concluded without prior notice and without compensation.
At the end of the probationary period, the employer must notify the employee of the probation results.
If the probation does not meet the requirements, the labor contract already concluded or the probationary contract shall be terminated.
Thus, the above provisions do not set a time limit for terminating the probationary contract, so the employer terminating the labor contract close to Tet does not violate the law.
How is the Tet Lunar New Year 2023 bonus calculated for employees?
Currently, the law does not stipulate the specific amount of the Tet Lunar New Year bonus that employees will receive.
Instead, the Tet Lunar New Year 2023 bonus policy will be decided by the employer according to Article 104 of the Labor Code 2019 as follows:
Bonuses
1. Bonus is the amount of money or assets or other forms awarded by the employer to the employee based on the business results, work performance, and job completion level of the employee.
2. The bonus regulations shall be decided by the employer and publicly announced at the workplace after consulting the representatives of the employees at the grassroots level, where these representatives are available.
Thus, the employer will decide the Tet Lunar New Year 2023 bonus policies based on business outcomes and performance.
For example, if the employer decides the Tet Lunar New Year 2023 bonus policy is three months' salary according to the labor contract based on the employee's work efficiency and productivity throughout the year. If the labor contract salary is VND 10,000,000/month, and the employee's work efficiency in 2022 is 90%, the Tet Lunar New Year 2023 bonus will be calculated as follows:
VND 10,000,000 x 3 x 90% = VND 27,000,000.
LawNet
