Is it lawful for the company to not provide the 13th-month salary due to Covid-19?
According to Article 104 of the Labor Code 2019 on bonuses, the provisions are as follows:
A bonus is an amount of money or assets or in other forms that the employer grants to the employee based on the results of production, business, and the level of job completion of the employee.
The bonus regulation is decided and publicly announced at the workplace by the employer after consulting the employee representative organization at the establishment, for places with such a representative organization.
Thus, it can be seen that current laws do not specifically provide for the 13th-month salary or Tet bonuses. Additionally, companies are not obligated to pay the 13th-month bonus to employees. Whether to grant a bonus or not will be decided by the company based on business production results and the level of job completion of the employees.
Therefore, if your company does not have profits or the employees do not complete the assigned tasks, the company has the right not to reward the 13th-month salary.
Note: Employees will receive a Tet bonus if there is an agreement in the labor contract or collective bargaining agreement (however, this will usually depend on the company's revenue and work efficiency).
Respectfully!
