In Vietnam: Is it permissible for employees to unilaterally terminate the employment contract when they are not paid adequately on schedule?
In Vietnam: Is it permissible for employees to unilaterally terminate the employment contract when they are not paid adequately on schedule? Is it permissible for companies in Vietnam to deduct salary of employees as disciplinary action? Is it permissible for companies in Vietnam to retain salary of employees?
In Vietnam: Is it permissible for employees to unilaterally terminate the employment contract when they are not paid adequately on schedule?
I have a question. Is it permissible for employees to unilaterally terminate the employment contract when they are not paid adequately on schedule?
Answer:
Pursuant to Clause 2.b Article 35 of the Labor Code in 2019 stipulating as follows:
An employee is shall have the right to unilaterally terminate the employment contract without prior notice if he/she:
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is not paid adequately or on schedule, except for the case specified in Clause 4 Article 97 of this Code.
Pursuant to Clause 4 Article 97 of the Labor Code in 2019 stipulating as follows:
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.
As regulations above, if it is not one of the cases specified in Clause 4 of this Article, the employee has the right to unilaterally terminate the labor contract without prior notice when the employer pay salary late.
Is it permissible for companies in Vietnam to deduct salary of employees as disciplinary action?
In this month, I'm late 3 days. One time is 15 minutes late. Another time is 10 minutes late. The latest time is 30 minutes. The accountant told me that I would be deducted half a day's salary to make up for 3 days of being late. Does it comply with the law?
Answer:
Pursuant to Article 102 of the Labor Code in 2019 stipulating as follows:
- An employer shall have the right to deduct from an employee’s salary only for the compensation for the damage to the employer’s equipment and assets in accordance with Article 129 of this Labor Code.
- The employee has the right to be aware of the reasons for the deduction.
- Any monthly deduction shall not exceed 30% of the net monthly salary of the employee, after the payment of compulsory social insurance, health insurance, unemployment insurance premiums and personal income tax.
According to this regulation, violation of the company's working hours regulations is not considered a reason for the company to deduct the employee's salary. Therefore, it is not appropriate for the company's accountant to deduct your salary.
In this case, you may contact to the accounting department or complain directly to the director of the company to resolve the problem and protect your interests.
Is it permissible for companies in Vietnam to retain salary of employees?
According to latest regulations, is it permissible for companies in Vietnam to retain salary of employees? In which cases shall employers be eligble to retain salary of employees?
Answer:
Pursuant to Clause 1 Article 94 of the Labor Code in 2019 stipulating as follows:
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.
Pursuant to Clause 4 Article 97 of the Labor Code in 2019 stipulating as follows:
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.
As regulations above, wmployers shall directly, fully and punctually pay salaries to their employees.
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 in accordance wit the law.
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