If my company pays employees late, will employees receive extra money in Vietnam?

If my company pays employees late, will employees receive extra money in Vietnam?

Every month, my company pays salary on the 6th. This month, the accountant said that because the boss was on a business trip abroad, he couldn't sign the payment slip. As of today, it's been more than 13 days late before we receive the salary. I heard that according to the law, if a company pays late compared to the salary schedule, it must pay employees more money, but I don't see that my company has that extra amount. Please explain to me, is it illegal for my company to pay salary like that?

Answer: Pursuant to the provisions of Clause 1, Article 94 of the 2019 Labor Code:

1. Employers shall directly, fully and punctually pay salaries to their employees. In the cases where an employee is not able to directly receive his/her salary, the employer may pay it through a person legally authorized by the employee.

At the same time, Clause 4, Article 97 of the 2019 Labor Code also determines:

4. In case of a force majeure event in which the employer is unable to pay the employee on schedule after all remedial measures have been implemented, the salary shall be paid within 30 days. In case a salary is paid at least 15 days behind schedule, the employer shall pay the employee a compensation that is worth at least the interest on the amount paid behind schedule at the latest 1-month interest rate quoted by the bank at which the employee’s salary account is opened.

Thus, according to this regulation in Vietnam, in principle, the company must pay salaries on time, however, in case the company pays salaries late, whether or not it must pay the employee more money will depend on the number of days. Company pays late. If the time the employer pays the employee's salary is less than 15 days late, he/she does not have to pay the employee extra.

According to the information you provided, if your company is 13 days late in paying employees (less than 15 days), it is not responsible to pay the company employees any additional money other than salary. If there is additional payment, it will depend on the company's own regulations in Vietnam.

If my company pays employees late, will employees receive extra money in Vietnam? (Image from the Internet)

Can employees resign immediately if their company does not pay salaries in Vietnam?

If according to the labor contract, can I quit because the company does not pay enough salary? According to Point b, Clause 2, Article 35 of the 2019 Labor Law, does it stipulate that the employee has right to unilaterally terminate the contract with the enterprise in case the enterprise does not pay enough salary or on time?

Answer: Point b, Clause 2, Article 35 of the 2019 Labor Code stipulates:

2. An employee is shall have the right to unilaterally terminate the employment contract without prior notice if he/she:

a) is not assigned to the work or workplace or not provided with the working conditions as agreed in the employment contract, except for the cases specified in Article 29 of this Labor Code;

b) is not paid adequately or on schedule, except for the case specified in Clause 4 Article 97 of this Code.

c) is maltreated, assaulted, physically or verbally insulted by the employer in a manner that affects the employee’s health, dignity or honor; is forced to work against his/her will;

d) is sexually harassed in the workplace;

dd) is pregnant and has to stop working in accordance with Clause 1 Article 138 of this Labor Code.

e) reaches the retirement age specified in Article 169 of this Labor Code, unless otherwise agreed by the parties; or

g) finds that the employer fails to provide truthful information in accordance with Clause 1 Article 16 of this Labor Code in a manner that affects the performance of the employment contract.

Thus, if you do not fall into an exception, if the company owes you salary, you have the right to resign your job immediately in Vietnam.

If employees suspend working due to power outages, how should they be paid properly in Vietnam?

Next door is an industrial garment factory in Tan Thuan export processing zone. This month, the company had two power outages, so employees had to stop working for 2 days to wait for the problem to be fixed. It is unclear whether the company must pay them for these 2 days when the employees do not work, because the fault is not the company's.

Answer : Pursuant to the provisions of Article 99 of the 2019 Labor Code:

In case of a suspension of work, the employee shall receive a suspension pay as follows:

1. If the suspension is at the employer’s fault, the employee shall be paid the full salary under the employment contract;

2. If the suspension is at the employee’s fault, the employee shall not receive the salary. If this leads to suspension of work of other employees in the same unit, they shall be paid an amount not smaller than the statutory minimum wages;

3. In case the suspension is caused by an electricity or water supply issue that is not at the employer’s fault, or by a natural disaster, fire, major epidemic, hostility, relocation requested by a competent authority, or for economic reasons, both parties shall negotiate the salary as follows:

a) If the suspension does not exceed 14 working days, the salary shall not fall below the statutory minimum wages;

b) If the suspension is longer than 14 working days, the salary shall be negotiated by both parties and the salary for the first 14 days must not fall below the statutory minimum wages.

In your case, if an employee at your garment factory has to stop working due to an electrical problem that is neither the company's fault nor the employee's fault, the company still has to pay the employee a suspension pay. At that time, the salary for termination of employment will be agreed upon by both parties but must not be lower than the statutory minimum wage prescribed by the Government in Vietnam.

Best regards!