Can the Company Deduct Wages When Employees Violate Internal Regulations?
Article 101 of the Labor Code 2012 stipulates:
Employers may only deduct employees' wages to compensate for damages caused by damage to the employer's tools and equipment as provided for in Article 130 of this Code.
Employees have the right to know the reason for any deduction from their wages.
The monthly wage deduction shall not exceed 30% of the employee's monthly wage after mandatory social insurance, health insurance, unemployment insurance, and income tax deductions.
Article 130 of the Labor Code stipulates: Employees who damage tools, equipment, or engage in other acts causing damage to the employer's property must compensate according to the provisions of law.
In cases where employees cause minor damage due to negligence with a value not exceeding 10 times the regional minimum wage announced by the Government of Vietnam applicable at the employee's workplace, the employee must compensate a maximum of 03 months' wages, and the deduction will be made monthly from their salary according to the provisions of Clause 3, Article 101 of this Code.
At the same time, according to Article 128 of the Labor Code 2012, employers are not allowed to use fines or salary cuts as a form of labor discipline handling.
Thus, according to these regulations, it can be understood that a company may only deduct an employee's salary in the sole case of causing damage to tools, equipment, or other acts causing property damage to the company. Deducting wages for employees being late or other violations of rules is against the regulations. This act will be penalized according to Clause 3b, Article 15 of Decree 95/2013/ND-CP, with a fine ranging from 10 to 15 million VND.
Respectfully!
