What is the administrative penalty imposed on the employer for failing to pay or insufficiently paying salaries to employees as agreed in their employment contracts in Vietnam?
- What are the regulations on the salary payment rules in Vietnam?
- How much is the administrative penalty imposed on the employer for failing to pay or insufficiently paying salaries to employees as agreed in their employment contracts in Vietnam?
- What are the regulations on establishment of pay scales, payrolls and labor productivity norms?
What are the regulations on the salary payment rules in Vietnam?
According to Article 94 of the 2019 Labor Code of Vietnam on the salary payment rules as follows:
Salary payment rules in Vietnam
1. Employers shall directly, fully and punctually pay salaries to their employees. In the cases where an employee is not able to directly receive his/her salary, the employer may pay it through a person legally authorized by the employee.
2. Employers must not restrict or interfere their employees’ spending of their salaries; must not force their employees to spend their salaries on goods or services of the employers or any particular providers decided by the employers.
Thus, the salary payment rules to employees is prescribed as above.
What is the administrative penalty imposed on the employer for failing to pay or insufficiently paying salaries to employees as agreed in their employment contracts in Vietnam? (Image from the Internet)
How much is the administrative penalty imposed on the employer for failing to pay or insufficiently paying salaries to employees as agreed in their employment contracts in Vietnam?
According to Article 17 of Decree No. 12/2022/ND-CP on violations against regulations on salaries as follows:
Violations against regulations on salaries
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2. The following fines shall be imposed upon an employer for commission of one of the following violations: Failing to pay salaries on schedule as prescribed by law; failing to pay or insufficiently paying salaries to employees as agreed in their employment contracts; failing to make or insufficiently making overtime pay; failing to make or insufficiently making nightshift pay; failing to pay or insufficiently paying work suspension allowances as prescribed by law; restricting or interfering employees’ spending of their salaries; forcing employees to spend their salaries on goods or services of the employer or any particular providers decided by the employer; deducting from employees’ salaries in breach of law; failing to pay or insufficiently paying salaries to employees how are reassigned to perform works which are not specified in their employment contracts or during a strike; failing to make or insufficiently making payments to employees who, due to employment termination or job loss, have not taken or not entirely taken up their annual leave in compensation for their untaken leave days; failing to make or insufficiently making advance payments to employees who temporarily leave their works in accordance with regulations of law; failing to pay full salaries to employees who are not disciplined for their work suspension period:
a) A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed if the violation involves 01 - 10 employees;
b) A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed if the violation involves 11 - 50 employees;
c) A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed if the violation involves 51 - 100 employees;
d) A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed if the violation involves 101 - 300 employees;
dd) A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed if the violation involves 301 employees or more.
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5. Remedial measures
a) The employer that commits the violation specified in Clause 2 or Clause 3 of this Article is compelled to pay full salaries plus interests on late payments or insufficient payments of salary, which are calculated at the highest rate of the demand deposit interest rates publicly quoted by state-owned commercial banks on the date of penalty imposition, to employees.
b) The employer that commits the violation specified in Clause 4 of this Article is compelled to pay full amounts of money equal to total sums of compulsory social insurance, compulsory health insurance, and unemployment insurance premiums payable plus interests on such amounts, which are calculated at the highest rate of the demand deposit interest rates publicly quoted by state-owned commercial banks on the date of penalty imposition, to employees.
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Thus, the employer failing to pay or insufficiently paying salaries to employees as agreed in their employment contracts, depending on the case, shall be administratively penalized as follows:
- A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed if the violation involves 01 - 10 employees;
- A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed if the violation involves 11 - 50 employees;
- A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed if the violation involves 51 - 100 employees;
- A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed if the violation involves 101 - 300 employees;
- A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed if the violation involves 301 employees or more.
At the same time, the employer that commits the violation specified in Clause 2 of this Article is compelled to pay full salaries plus interests on late payments or insufficient payments of salary, which are calculated at the highest rate of the demand deposit interest rates publicly quoted by state-owned commercial banks on the date of penalty imposition, to employees.
The above fines are imposed on individuals; the fines incurred by an organization are twice as much as that incurred by an individual for the same administrative violation.
What are the regulations on establishment of pay scales, payrolls and labor productivity norms?
Pursuant to Article 93 of the 2019 Labor Code of Vietnam stipulating the establishment of pay scales, payrolls and labor productivity norms as follows:
Establishment of pay scales, payrolls and labor productivity norms
1. Every employer shall establish their worn pay scale, payroll and labor productivity norms as the basis for recruitment and use of labor, negotiation and payment of salaries.
2. The labor rate shall be an average value that is achievable to most employees without having to extend their normal working hours, and must be experimented before officially introduced.
3. The employer shall consult with the representative organization of employees (if any) during establishment of the pay scale, payroll and labor productivity norms.
The pay scale, payroll and labor productivity norms shall be publicly posted at the workplace before they are implemented.
Thus, the establishment of pay scales, payrolls and labor productivity norms is prescribed as above.
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