Is it allowed to advance annual leave for the following year in Vietnam?

Is it allowed to advance annual leave for the following year in Vietnam?

Article 113 of the 2019 Labor Code stipulates annual leave as follows:

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.

Thus, the law does not provide for advance leave, but only stipulates that employees can agree with the employer to take annual leave in installments or combine annual leave for up to 3 years at a time. Therefore, whether the company allows employees to advance their annual leave for the following year depends on the labor regulations in Vietnam, the company's collective labor agreement or the agreement between the employee and the employer.

What is time to determine number of annual leave days of an employee in Vietnam?

Article 65 of Decree 145/2020/ND-CP stipulates periods included in working time as the basis for calculation of annual leave as follows:

1. Vocational training and apprenticeship period prescribed in Article 61 of the Labor Code if the employee works for the employer after the end of the vocational training or apprenticeship period.

2. Probation period if the employee keeps working for the employer after the end of the probation period.

3. Personal leave prescribed in Clause 1 Article 115 of the Labor Code.

4. Unpaid leave if accepted by the employer and not exceeding 01 month per year totally.

5. Leave taken due to occupational accidents or diseases if not exceeding 6 months totally.

6. Sick leave if not exceeding 02 months per year totally.

7. Maternal leave prescribed by social insurance laws.

8. Period of performance of duties of the internal employee representative organization that is included in working time as prescribed by law.

9. Work suspension and leave through no fault of the employee.

10. Suspension period after which the employee is exonerated or exempt from disciplinary actions.

Above are the legal provisions on the periods included in working time as the basis for calculation of annual leave in Vietnam.

What is annual leave calculation for employees who have worked less than 12 months in Vietnam? 

Clause 1, Article 66 of Decree 145/2020/ND-CP stipulates determination of annual leave days in special cases as follows:

1. The number of annual leave days of an employee who has worked for less than 12 months mentioned in Clause 2 Article 113 of the Labor Code equals (=) annual leave days plus (+) extra leave days (if any) divided by (:) 12 months multiplied by (x) actual working months in the year.

According to this Article, the number of annual leave days of employees working less than 12 months as prescribed in Clause 2, Article 113 of the Labor Code is calculated as follows: take the number of annual leave days plus extra leave days (if any), divided by 12 months, multiplied by actual working months in the year to calculate the number of annual leave days.

Best regards!