How are the compensation procedures in labor from February 01, 2021 in Vietnam?

According to Article 71 of the Decree No 145/2020/NĐ-CP of Vietnam’s Government, compensation procedures prescribed in Clause 2 Article 130 of the Labor Code of Vietnam are specified below:

- In cases where an employee causes damages or loses an asset assigned by the employer or otherwise causes damage to the employer’s assets or exceeds the consumption limit, the employer will request the employee to prepare a written report on the incident.

- Within the time limit for claiming compensation specified in Article 72 of this Decree, the employer shall conduct a compensation hearing as follows:

+ At least 05 working days before the compensation hearing is held, the employer shall notify the participants, including: the persons specified in Point b and Point c Clause 1 Article 122 of the Labor Code and the valuer (if any). Make sure these participants receive the notification before the hearing takes place. The notification shall specify the hearing time and location, full name of the employee that causes the damage and the damage caused by him/her;

+ Upon receipt of the employer’s notification, the mandatory participants mentioned in Point a of this Clause shall send the employer confirmation of their participation. In case any of the mandatory participants cannot participate in the hearing, the employee and the employer shall reach an agreement on change of time and/or location of the hearing. In case such an agreement cannot be reached, the employer shall make the final decision;

+ The employer shall conduct the compensation hearing at the time and location mentioned in Point a and Point b of this Clause. In case any of the mandatory participants mentioned in Point a of this Clause does not confirm his/her participation or is not present, the employer shall still conduct the hearing.

- Minutes of the compensation hearing shall be taken and ratified before the end of the hearing. The minutes shall bear the signatures of the participants as prescribed in Point a Clause 2 of this Article. In case a person refuses to sign the minutes, the minutes taker shall specify his/her full name and reasons for refusal in the minutes.

- The compensation decision shall be issued within the time limit for claiming compensation; specify the damage caused and the causes of damage; the compensation level; deadline and method of compensation payment. The decision shall be sent to the participants mentioned in Point a Clause 2 of this Article.

- Other cases of compensation for damage shall comply with regulations of the Civil Code of Vietnam.

View more details at the Decree No 145/2020/NĐ-CP of Vietnam’s Government, effective from February 01, 2021.

Le Vy

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