Do employees in Vietnam who do not take annual leave receive payment?

Do employees in Vietnam who do not take annual leave receive payment? Thank you!

What is number of paid leave days for employees under labor contracts in Vietnam?

Pursuant to Article 113 of the Labor Code in 2019 stipulating annual leave as follows:

Annual leave

1. Any employee who has been working for an employer for 12 months is entitled to fully-paid annual leave, which is stipulated in his/her employment contract as follows:

a) 12 working days for employees who work in normal working conditions;

b) 14 working days for employees that are minors, the disabled, employees who do laborious, toxic or dangerous works;

c) 16 working days for employees who do highly laborious, toxic or dangerous works.

2. An employee who has been working for an employer for less than 12 months will have a number of paid leave days proportional to the number of working months.

3. An employee who, due to employment termination or job loss, has not taken or not entirely taken up his/her annual leave shall be paid in compensation for the untaken leave days.

4. The employer has the responsibility to regulate the timetable for annual leaves after consultation with the employees and must give prior notice to the employees. An employee may reach an agreement with the employer on taking annual leave in instalments or combining annual leave over a maximum period of up to 03 years.

5. When an employee takes his/her annual leave before salary payment is due, he/she may receive an advance in accordance with Clause 3 Article 101 of this Labor Code.

6. When taking annual leave, should the employee travel by road, rail, water and the travel days, the traveling time in excess to 02 days will be added to the annual leave days, and this policy shall only be granted once for an annual leave in a year.

7. The Government shall elaborate this Article.

As regulations above, employees who work for 12 months will be entitled to the following number of paid leave days:

- 12 working days for employees working in normal conditions;

- 14 working days for underage workers, disabled workers, workers in heavy, hazardous, and dangerous jobs;

- 16 working days for workers in particularly heavy, hazardous, and dangerous jobs.

In addition, for every 5 years of continuous service for one employer, the number of annual leave days for employees will be increased by one day.

Do employees in Vietnam who do not take annual leave receive payment? - Source: Internet

Do employees in Vietnam who do not take annual leave receive payment?

Pursuant to Clause 3 Article 113 of the Labor Code in 2019 stipulating annual leave as follows:

Annual leave

...

3. An employee who, due to employment termination or job loss, has not taken or not entirely taken up his/her annual leave shall be paid in compensation for the untaken leave days.

...

Therefore, if an employee does not take annual leave and resigns or loses their job, they will be paid for the remaining annual leave days.

However, if an employee does not take annual leave, they will not be paid for the leave, unless the two parties have a different agreement.

How to calculate the remaining annual leave days for employees who resign or lose their jobs in Vietnam?

According to  Clause 3 Article 67 of Decree 145/2020/NĐ-CP on travel allowance, wages during travel, annual leave wages and other paid leave days, the following are the provisions on the calculation of the remaining annual leave days for employees who resign or lose their jobs:

Travel allowance, wages during travel, annual leave wages and other paid leave days

...

3. The wages used as the basis for paying employees for the remaining annual leave days or the remaining annual leave days according to Clause 3, Article 113 of the Labor Code is the monthly salary according to the labor contract of the month immediately preceding the month in which the employee resigns or loses their job.

When an employee resigns and still has annual leave days remaining, the amount of money paid to the employee for the remaining annual leave days is calculated as follows:

Annual leave remaining wages = Monthly salary of the month immediately preceding the month in which the employee resigns : Number of working days x Number of remaining annual leave days

Best regards!

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