Is it required to notify employees about delayed salary payments?

Your company typically issues monthly salaries on the 4th, but this month there has been no payment. As of today, it is already 3 days late, but there has been no notification. Could you please advise if there are any circumstances under which the company is permitted to delay salary payments to employees? If payments are delayed, is there a requirement to notify the employees?

Pursuant to the provisions of Clause 2, Article 97 of the 2019 Labor Code:

Employees receiving monthly salaries shall be paid once a month or once every half month. The time of salary payment shall be mutually agreed upon and must be fixed at a cyclical time.

Clause 4 of this Article also stipulates:

In the event of a force majeure situation where the employer has exhausted all remedies but is still unable to pay salaries on time, the delay shall not exceed 30 days; if the salary payment is delayed for 15 days or more, the employer must compensate the employee with an amount at least equal to the interest on the delayed amount, calculated at the one-month term deposit interest rate announced by the bank where the employer opens the salary payment account for the employee at the time of salary payment.

Therefore, in principle, the enterprise is not allowed to delay salary payment for employees compared to the monthly payment schedule except in cases of force majeure. However, this provision does not clearly define what constitutes a force majeure case. Thus, further guidance from a Decree is needed.

Regarding the obligation to notify, this provision also does not impose the obligation on the enterprise to notify employees when salary payment is delayed due to a force majeure event. Therefore, in such cases, the enterprise's failure to notify is still in compliance with the regulation.

Note: If the salary payment is delayed for 15 days or more, the enterprise must compensate the employee with an amount at least equal to the interest on the delayed amount, calculated at the one-month term deposit interest rate announced by the bank where the employer opens the salary payment account for the employee at the time of salary payment.

Respectfully!

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