Can Companies Not Pay Overtime Wages on Public Holidays if They Arrange Compensation Days Off for Employees?
Article 97 of the Labor Code 2012 stipulates:
- Employees working overtime shall be paid wages calculated according to the wage unit price or the wage for the work currently performed as follows:
a) On regular working days, at least 150%;
b) On weekly rest days, at least 200%;
c) On public holidays, paid leave days, at least 300%, not yet including the holiday pay or the paid leave for employees receiving daily wages.
Employees working at night shall be paid an additional amount of at least 30% of the wage calculated according to the wage unit price or the wage for the work performed on a regular working day.
Employees working overtime at night shall, in addition to the wages stipulated in Clauses 1 and 2 of this Article, be paid an additional 20% of the wage calculated according to the wage unit price or the wage for the work performed during the daytime.
Item c Clause 6 Article 106 of the Labor Code 2012 stipulates:
After each period of continuous overtime work for many days in a month, the employer must arrange compensatory rest for the employee for the unpaid time.
The compensatory rest time according to Item c Clause 2 Article 106 of the Labor Code is stipulated as follows (Article 4 Decree 45/2013/ND-CP):
a) After each period of maximum continuous 7 days of overtime work in a month, the employer must arrange for the employee to have compensatory rest for the unpaid time;
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Thus, according to the Labor Code, employees are entitled to leave with full pay on weekly rest days, holidays, and Tet. In the case that the enterprise arranges for employees to work on weekly rest days, holidays, and Tet, they must calculate and pay the overtime wages for the employees. The enterprise cannot arrange for compensatory leave on another day without paying wages. Therefore, the company and the employees can flexibly agree on the payment of wages.
For example: If working on a weekly rest day, the company must pay 200% wage; if arranging for the employee to have a day off, the company only needs to pay 100% wage.
Sincerely!
