Do employers need to pay probationary salary when unilaterally terminating the employment contracts in Vietnam?
- What are the regulations on probationary salary in Vietnam?
- Do employers need to pay probationary salary when unilaterally terminating the employment contracts in Vietnam?
- Vietnam: If employers terminates probation contracts before the deadline, must the employers pay compensation?
- What is the maximum probationary period for employees in Vietnam?
What are the regulations on probationary salary in Vietnam?
The salary of probationary employees according to the provisions of Article 26 of the Labor Code 2019 is as follows:
Probationary salary
The probationary salary shall be negotiated by both parties and shall not be lower than 85% of the offered salary.
Thus, according to the above regulations, the probationary salary shall be negotiated by both parties and shall not be lower than 85% of the offered salary.
Do employers need to pay probationary salary when unilaterally terminating the employment contracts in Vietnam?
According to the provisions of Article 48 of the Labor Code 2019, regulations on salary payment terms are as follows:
Responsibilities of the parties upon termination of an employment contract
1. Within 14 working days following the termination of an employment contract, both parties shall settle all payments in respect of the rights and interests of each party. In the following cases, such period may be extended, but shall not exceed 30 days:
a) Shutdown of business operation of the employer that is not a natural person;
b) Changes in the organizational structure, technology or changes due to economic reasons;
c) Full division, partial division, consolidation, merger of the enterprise; sale, lease, conversion of the enterprise; transfer of the right to ownership or right to enjoyment of assets of the enterprise or cooperative;
d) Natural disasters, fire, hostility or major epidemics.
2. Priority shall be given to payment of the employees’ salaries, social insurance, health insurance, unemployment insurance, severance allowance and other benefits under the collective bargaining agreement and employment contracts in case of shutdown, dissolution or bankruptcy of an enterprise or cooperative.
3. The employer has the responsibility to:
a) Complete the procedures for verification of duration of participation in social insurance and unemployment insurance, return them and original copies of the employee’s other documents (if any);
b) Provide copies of the documents relevant to the employee’s work if requested by the employee. The employer shall pay the cost of copying and sending the documents.
Thus, according to the above regulations, at the end of a employment contract with a probationary clause, the employer is obliged to pay the full salary for the number of working days and productivity bonuses to the employee according to the agreement.
Do employers need to pay probationary salary when unilaterally terminating the employment contracts in Vietnam?
Vietnam: If employers terminates probation contracts before the deadline, must the employers pay compensation?
Article 27 of the Labor Code 2019 stipulates the termination of probationary period as follows:
Termination of probationary period
1. Upon the expiry of the probationary period, the employer shall inform the employee of the probation result.
If the result is satisfactory, the employer shall keep implementing the concluded employment contract, if there is one, or conclude the employment contract.
If the result is not satisfactory, the employer may terminate the concluded employment contract or the probation contract.
2. During the probationary period, either party has the right to terminate the concluded probation contract or employment contract without prior notice and compensation obligation.
Thus, according to the above regulations, during the probationary period, either party has the right to terminate the concluded probation contract or employment contract without prior notice and compensation obligation..
What is the maximum probationary period for employees in Vietnam?
The probationary period for employees is specified in Article 25 of the Labor Code 2019 as follows:
Probationary period
The probationary period shall be negotiated by the parties on the basis of the nature and complexity of the job. Only one probationary period is allowed for a job and the probation shall not exceed:
1. 180 days for the position of enterprise executive prescribed by the Law on Enterprises, the Law on management and use of state investment in enterprises;
2. 60 days for positions that require a junior college degree or above;
3. 30 days for positions that require a secondary vocational certificate, professional secondary school; positions of or for technicians, and skilled employees;
4. 06 working days for other jobs.
Thus, only one probationary period is allowed for a job and the probation shall not exceed:
- 180 days for the position of enterprise executive prescribed by the Law on Enterprises, the Law on management and use of state investment in enterprises;
- 60 days for positions that require a junior college degree or above;
- 30 days for positions that require a secondary vocational certificate, professional secondary school; positions of or for technicians, and skilled employees;
- 06 working days for other jobs.
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