Is it mandatory to give Tet bonuses to employees in Vietnam? Is it true that company does not give a 13th month salary due to the Covid epidemic in Vietnam?

Is it mandatory to give Tet bonuses to employees in Vietnam?

Question: According to the new labor law, are companies and employers required to give Tet bonuses to employees?

In Article 104 of the 2019 Labor Code , it is stipulated:

1. A bonus means an amount of money, a piece of property or item that is provided by an employer for his/her employees on the basis of the business performance or the employees’ performance.

2. A bonus regulation shall be decided and publicly announced at the workplace by the employer after consultation with the representative organization of employees (if any).

=> Thus, according to the above regulations in Vietnam, employees and companies are not required to give Tet bonuses to employees. Tet bonuses for employees depend on production and business results and are decided by the company.

Is it mandatory to give Tet bonuses to employees in Vietnam? Is it true that company does not give a 13th month salary due to the Covid epidemic in Vietnam? (Image from the Internet)

Is it true that company does not give a 13th month salary due to the Covid epidemic in Vietnam?

At the beginning of November, my company announced that this year's Lunar New Year the company will not give 13th month salary bonuses to employees due to the Covid-19 epidemic. Previously, every year the company still gave bonuses. So is it right for the company to do that?

According to Article 104 of the 2019 Labor Code, regulations on bonuses are as follows:

1. A bonus means an amount of money, a piece of property or item that is provided by an employer for his/her employees on the basis of the business performance or the employees’ performance.

2. A bonus regulation shall be decided and publicly announced at the workplace by the employer after consultation with the representative organization of employees (if any).

Thus, it can be seen that the current law does not have specific regulations on 13th month salary and Tet bonus. In addition, the company is not required to pay a 13th month salary bonus to employees. Because whether or not to reward will be decided by the company based on production and business results and the level of job completion of the employee in Vietnam.

Therefore, if your company does not make a profit, or the employee does not complete the assigned work, the company has the right not to award the 13th month salary.

Note: Employees will receive Tet bonuses if agreed upon in the labor contract in Vietnam or collective labor agreement (however, it will usually depend on the company's revenue and work efficiency).

Can I get a Tet bonus if I resign in February in Vietnam?

Can you please tell me if my leave application has been approved on February 5, 2021, will I still receive a bonus?

Article 104 of the 2019 Labor Code stipulates:

1. A bonus means an amount of money, a piece of property or item that is provided by an employer for his/her employees on the basis of the business performance or the employees’ performance.

2. A bonus regulation shall be decided and publicly announced at the workplace by the employer after consultation with the representative organization of employees (if any).

Thus, labor law does not require companies to pay Tet bonuses to employees. Because whether or not to reward will be decided by the company based on the annual production and business results and the level of work completion of the employee. Personally, we think this is an appropriate regulation, harmonizing the rights and interests of both parties in Vietnam.

Bonus regulations will also be decided by the company and publicly announced at the workplace after consulting with the grassroots union or the direct superior union if the company does not have a grassroots union at this time.

In case your leave in February 2021 coincides with the traditional New Year holiday of the nation, whether you will receive a bonus or not will depend on your company's decision in Vietnam.

In fact, some companies still pay bonuses to employees who resign their jobs during Tet, because after all, the bonus is a reward for the work of the past year. 

Best regards!