Are bonus regulations required to be announced at companies in Vietnam?
Are bonus regulations required to be announced at companies in Vietnam? How much will my company be fined for failing to publicly post bonus regulations in Vietnam?
Hi, I have a problem that needs to be answered. I am the director of the U.S. Import and Export Company. Coming to September 2, the company plans to reward all workers. The level of bonus will depend on each position and rank in the company. May I ask if it is necessary to make the bonus regulations public? Will I be fined if I don't publicly post it?
Please advise. Thankyou.
1. Are bonus regulations required to be announced at companies in Vietnam?
In Article 104 of the Labor Code 2019 stipulates the bonuses as follows:
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 announcement of the bonus regulation at the company is a must. When the company makes the bonus regulation transparent, workers will also reduce the question of the amount of bonus they receive. There will be no comparison between one worker and another.
That is internally in the company, but legally, it is a violation to not publicize the bonus regulation at the company in Vietnam.
2. How much will my company be fined for failing to publicly post bonus regulations in Vietnam?
According to Article 17 of Decree 12/2022/ND-CP, violations against regulations on salaries are as follows:
1. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed upon an employer for commission of one of the following violations:
a) Failing to publicly post the pay scale, payroll, labour productivity norms and bonus regulations at the workplace;
b) Failing to establish pay scale, payroll, or labour productivity norms; failing to experiment labour productivity norms before they are officially introduced;
c) Failing to consult with the internal representative organization of employees (if any) during the establishment of the pay scale, payroll, labour productivity norms and bonus regulations;
d) Failing to provide salary notes to employees or providing salary notes to employees in breach of law;
dd) Failing to pay salaries fairly or discriminating against genders of employees who perform equal works.
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.
...
Pursuant to Clause 1, Article 6 of Decree 12/2022/ND-CP stipulating fine levels:
1. The fines for administrative violations prescribed in Chapter II, Chapter III and Chapter IV of this Decree shall be imposed upon violating individuals, except the fines in Clauses 1, 2, 3, 5 Article 7, Clauses 3, 4, 6 Article 13, Clause 2 Article 25, Clause 1 Article 26, Clauses 1, 5, 6, 7 Article 27, Clause 8 Article 39, Clause 5 Article 41, Clauses 1 through 12 Article 42, Clauses 1 through 8 Article 43, Clauses 1 through 6 Article 45, Clause 3 Article 46 of this Decree. The fine imposed upon an organization is twice as much as that imposed upon an individual for committing the same administrative violation.
Therefore, when your company does not publicly post bonus regulations at the company, it will be fined from VND 10,000,000 to VND 20,000,000.
Best Regards!
