Does the company have to provide bonuses for employees on the holidays of April 30 and May 1? Are employees in Vietnam working on holidays considered working overtime?
Does the company have to provide bonuses for employees on the holidays of April 30 and May 1?
Pursuant to the provisions of Article 104 of the 2019 Labor Code of Vietnam as follows:
Bonuses
1. A bonus means an amount of money, a piece of property or item that is provided by an employer for his/her employees on the basis of the business performance or the employees’ performance.
2. A bonus regulation shall be decided and publicly announced at the workplace by the employer after consultation with the representative organization of employees (if any).
Thus, the holiday bonus on April 30 and May 1 is not a mandatory amount that enterprises must pay to employees.
A bonus means an amount of money, a piece of property or item that is provided by an employer for his/her employees on the basis of the business performance or the employees’ performance.
According to that, enterprises are not required to reward employees on the holidays of April 30 and May 1.
At the same time, the bonus level and form of bonus are also decided by the employer. The bonuses on April 30 and May 1 will not have a fixed level. Depending on the financial resources of the business, the employer can reward more money or reward less money for employees.
Does the company have to provide bonuses for employees on the holidays of April 30 and May 1? Are employees in Vietnam working on holidays considered working overtime?
Employees in Vietnam working on the holidays of April 30 and May 1 are considered to work overtime?
Pursuant to Article 98 of the 2019 Labor Code of Vietnam stipulating as follows:
Overtime pay, night work pay
1. An employee who works overtime will be paid an amount based on the piece rate or actual salary as follows:
a) On normal days: at least 150%;
b) On weekly days off: at least 200%;
c) 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.
2. An employee who works at night will be paid an additional amount of at least 30% of the normal salary.
3. 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.
4. The Government shall elaborate this Article.
At the same time, according to Article 112 of the 2019 Labor Code of Vietnam as follows:
Public holidays
1. Employees shall be entitled to fully paid days off on the following public holidays:
a) Gregorian Calendar New Year Holiday: 01 day (the 1st of January of the Gregorian calendar);
b) Lunar New Year Holidays: 05 days;
c) Victory Day: 01 day (the 30th of April of the Gregorian calendar);
d) International Labor Day: 01 day (the 1st of May of the Gregorian calendar);
dd) National Day: 02 days (the 2nd of September of the Gregorian calendar and the previous or next day);
e) Hung Kings Commemoration Day: 01 day (the 10th of the third month of the Lunar calendar).
2. Foreign employees in Vietnam are entitled to 01 traditional public holiday and 01 National Day of their country, in addition to the public holidays stipulated in Clause 1 of this Article.
3. The Prime Minister shall decide the specific public holidays mentioned in Point b and Point dd Clause 1 of this Article on an annual basis.
According to the above regulations, the holidays of April 30 and May 1 are considered as public holidays on which employees are entitled to rest and receive full salary. Therefore, when employees go to work on the holidays of April 30 and May 1, they will be considered overtime.
Employees working on public holidays shall be paid at least 300% not including the daily salary during the public holidays for employees receiving daily salaries.
How many days will employees in Vietnam have holidays on April 30 and May 1?
Pursuant to Clause 1, Article 112 of the 2019 Labor Code of Vietnam, employees will have 1 day off on April 30, and on International Labor Day on May 1, employees will have 1 day off.
At the same time, according to the provisions of Article 111 of the 2019 Labor Code of Vietnam as follows:
Weekly breaks
1. Each week an employee is entitled to a break of at least 24 consecutive hours. Where it is impossible for the employee to have a weekly day off due to the work cycle, the employer has the responsibility to ensure that on average the employee has at least 04 days off per month.
2. The employer has the right to determine and schedule the weekly breaks either on Sunday or for another fixed day in a week, which must be recorded in the internal labor regulations.
3. In case a public holiday falls on an employee’s weekly break coincide with a public holiday as prescribed in Clause 1 Article 112 of this Labor Code, he/she will have compensatory time-off on the next working days.
Thus, if the above-mentioned holidays coincide with an employee's weekly rest day, this employee will be compensated on the next working day of the following week.
In 2023, Victory Day (April 30, 2023) and International Labor Day (May 1, 2023) will take place on Sunday and Monday respectively, and the two above holidays are adjacent to the Hung Kings Commemoration Day.
Therefore, the holiday schedule of April 30 and May 1, 2023, employees working at the enterprise are as follows:
- For employees who have weekly rest on Saturdays and Sundays, the holiday for the Hung Kings Commemoration Day and April 30 - May 1, 2023 will last for 5 consecutive days from April 29, 2023 to the end of May 03, 2023.
- For units with weekly rest on Sunday, employees are entitled to rest on the occasion of Hung Kings Commemoration Day, April 30 and May 1 for 04 consecutive days, from April 29 to May 2.
LawNet
