May employers force their employees to spend their salaries on goods in Vietnam? If not, how much is the fine?
May employers force their employees to spend their salaries on goods in Vietnam?
According to Article 94 of the 2019 Labor Code, the regulations are as follows:
Principles of salary payment
1. The employer must pay the salary directly, fully, and on time to the employee. If the employee cannot receive the salary directly, the employer may pay the salary to the legally authorized person on behalf of the employee.
2. The employer must not limit or intervene in the employee's right to decide on spending their salary; must not force employees to use their salary to purchase goods or services of the employer or of other units designated by the employer.
Employees have the right to decide on their salary expenditure without any restrictions or interference from the employer.
This means that companies are also strictly prohibited from taking actions that force employees to allocate their salary to purchase goods or use services provided by the company or other designated suppliers.
May employers force their employees to spend their salaries on goods in Vietnam? If not, how much is the fine?
Is there a penalty for forcing employees to spend their salaries on goods in Vietnam?
Based on Clause 2, Article 17 of Decree 12/2022/ND-CP, the regulations are as follows:
Violations of salary regulations
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2. A fine shall be imposed on employers for any of the following acts: paying salaries late according to the legal provisions; not paying or insufficiently paying salaries as agreed in the labor contract; not paying or insufficiently paying overtime salaries; not paying or insufficiently paying night shift salaries; not paying or insufficiently paying idle-time pay as per the law; limiting or intervening in the employee's right to decide on spending their salary; forcing employees to use their salary to purchase goods or services of the employer or other units designated by the employer; unlawfully deducting the employee's salary; not paying or insufficiently paying salaries for the period when the employee is temporarily assigned to other work differing from the labor contract or during the suspension of work; not paying or insufficiently paying unused annual leave or the remaining leave days when the employee resigns or loses their job; not advancing or insufficiently advancing salaries during suspension as per the law; not fully paying suspended salaries if the employee is not subject to labor discipline, in one of the following amounts:
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 over 301 employees.
3. A fine shall be imposed on employers who pay employees less than the minimum wage prescribed by the Government of Vietnam, in the following amounts:
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 over 51 employees.
Depending on the number of affected employees, the employer will be administratively sanctioned at various levels. Specifically:
- Violation involving 01 to 10 employees: Fine from 5 to 10 million VND.
- Violation involving 11 to 50 employees: Fine from 10 to 20 million VND.
- Violation involving 51 to 100 employees: Fine from 20 to 30 million VND.
- Violation involving 101 to 300 employees: Fine from 30 to 40 million VND.
- Violation involving over 301 employees: Fine from 40 to 50 million VND.
Note: The above penalties apply to individuals. In cases where organizations violate, the penalty will be double that of individuals.
What are salary payment forms in Vietnam?
According to Article 96 of the 2019 Labor Code, the regulations are as follows:
Forms of salary payment
1. The employer and the employee may agree on salary payment based on time, product, or fixed amount.
2. Salaries can be paid in cash or transferred to the employee's personal bank account.
In case the salary is paid through the employee's personal bank account, the employer must cover related fees for account opening and salary transfer.
3. The Government of Vietnam shall regulate the details of this Article.
Thus, the employer and the employee can agree on the form of salary payment based on time, product, or fixed amount.
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