How will enterprises be penalized for forcing employees to deduct their wages to buy goods?
What form do employers use to pay employees?
Pursuant to Article 96 of the 2019 Labor Code stipulates as follows:
Forms of Wage Payment
1. Employers and employees shall agree on forms of wage payment based on time, products, or contracts.
2. Wages are paid in cash or transferred to the employees' personal accounts opened at banks.
When wages are paid through personal accounts opened at banks, the employer shall pay the related fees for opening the accounts and transferring the wages.
3. The Government of Vietnam provides detailed regulations on this Article.
Thus, employers and employees can agree on forms of wage payment based on time, products, or contracts.
*If employers force employees to deduct wages to buy goods, what penalties will be imposed on enterprises?*
Can enterprises force employees to deduct wages to buy goods of the enterprise?
Pursuant to Article 90 of the 2019 Labor Code stipulates as follows:
Wages
1. Wages are the amount of money that employers pay employees based on agreements for performing jobs, including wage rates for jobs or titles, salary allowances, and other additional amounts.
2. The wage rate for jobs or titles must not be lower than the minimum wage.
3. Employers must ensure equal pay, irrespective of gender, for employees performing jobs of equal value.
According to the above regulations, wages are the amount of money that employees receive from employers when performing work and other salary allowances.
Additionally, in Article 94 of the 2019 Labor Code stipulates as follows:
Principles of Wage Payment
1. Employers must pay wages directly, fully, and on time to employees. If employees cannot receive wages directly, employers may pay wages to the persons legally authorized by employees.
2. Employers must not restrict or interfere with employees' rights to self-determine the expenditure of their wages; must not force employees to spend wages on buying goods or using services of employers or other units designated by employers.
Employees have the right to self-determine the expenditure of their wages without any restrictions or interference from enterprises.
This means that enterprises are also prohibited from taking actions that force employees to deduct wages to buy goods or use services of the enterprise or other suppliers.
Will employers be fined for forcing employees to deduct wages to buy goods?
As mentioned above, the law does not allow employers to force employees to buy goods produced by them or from other suppliers. However, this situation still occurs in many enterprises producing and trading food items, household goods, etc.
Pursuant to Clause 2 Article 17 of Decree 12/2022/ND-CP stipulates as follows:
Violations Regarding Wages
...
2. A fine shall be imposed on employers that have one of the following acts: Late payment of wages as prescribed by law; failing to pay or paying insufficient wages to employees as agreed in labor contracts; failing to pay or paying insufficient wages for overtime work; failing to pay or paying insufficient night work wages; failing to pay or paying insufficient stopping wages for employees as prescribed by law; restricting or interfering with employees' rights to self-determine the expenditure of wages; forcing employees to spend wages on buying goods or using services of employers or other units designated by employers; deducting wages from employees not conformable with laws; failing to pay or paying insufficient wages to employees when temporarily transferring employees to other work different from labor contracts or during a strike; failing to pay or paying insufficient wages for employees for unused annual leave or unused leave when employees resign or lose jobs; failing to advance or advancing insufficient wages to employees during a suspension in accordance with the law; failing to fully pay wages for employees during a suspension period when employees are not subject to labor discipline in any of the following levels:
a) From 5,000,000 VND to 10,000,000 VND for violations involving 01 to 10 employees;
b) From 10,000,000 VND to 20,000,000 VND for violations involving 11 to 50 employees;
c) From 20,000,000 VND to 30,000,000 VND for violations involving 51 to 100 employees;
d) From 30,000,000 VND to 40,000,000 VND for violations involving 101 to 300 employees;
dd) From 40,000,000 VND to 50,000,000 VND for violations involving 301 or more employees.
3. Fines shall be imposed on employers for the act of paying employees wages lower than the minimum wage set by the Government of Vietnam according to the following levels:
a) From 20,000,000 VND to 30,000,000 VND for violations involving 01 to 10 employees;
b) From 30,000,000 VND to 50,000,000 VND for violations involving 11 to 50 employees;
c) From 50,000,000 VND to 75,000,000 VND for violations involving 51 or more employees.
Depending on the number of employees affected, employers will be subject to different levels of administrative fines. Specifically:
- For violations involving 01 to 10 employees: A fine of 5 million to 10 million VND.
- For violations involving 11 to 50 employees: A fine of 10 million to 20 million VND.
- For violations involving 51 to 100 employees: A fine of 20 million to 30 million VND.
- For violations involving 101 to 300 employees: A fine of 30 million to 40 million VND.
- For violations involving 301 or more employees: A fine of 40 million to 50 million VND.
These fines are for employers who are individuals. If the employer is an organization, the fine will be doubled according to Clause 2 Article 6 of Decree 12/2022/ND-CP. Correspondingly, organizations violating this can be administratively fined up to 100 million VND.
LawNet
