Is it possible to negotiate the payment of unpaid leave days in Vietnam?
Is it possible to negotiate the payment of unpaid leave days in Vietnam? What are regulations on employee's annual leave period in Vietnam?
My company's collective labor agreement contains content that stipulates that the employer must pay wages for the annual leave days that the employee has not taken yet. However, from January 1, 2021 onward, the employer is not required to comply with the above regulation. So, is it illegal for my company to make such a collective labor agreement? Thank you!
Is it possible to negotiate the payment of unpaid leave days in Vietnam?
Pursuant to Clause 3, Article 113 of the 2019 Labor Code, the annual leave is as follows:
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.
And based on Clause 1, Article 4 of the Labor Code 2019, State policies on labor are as follows:
1. Guarantee the legitimate rights and interests of employees and workers without labor relations; encourage agreements providing employees with conditions more favorable than those provided by the labor laws.
According to this Article, in case the enterprise wants to create better conditions for employees, it can agree to pay wages for the employees' annual leave days, other than the cases specified in Clause 3, Article 113 of Labor Code mentioned above. Therefore, it is not illegal for your company to establish a collective labor agreement that stipulates the payment of days without annual leave in Vietnam.
What are regulations on employee's annual leave period in Vietnam?
Pursuant to Article 113 of the 2019 Labor Code, the employee's annual leave period is 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.
Best Regards!
