How to Handle a Company Not Paying Wages on Time?

According to the principles of wage payment stipulated in Article 96 of the Labor Code 2012, "Employees are to be paid directly, fully, and on time."

According to the guidance in Article 24 of Decree 05/2015/ND-CP, in the case that the employer fails to pay wages on time due to natural disasters, fires, or other force majeure reasons despite having taken all remedial measures, the wage payment delay must not exceed 01 month. In addition to wages, the employer must pay an additional amount to the employee for late payment as stipulated below:

- If the wage payment delay is less than 15 days, no additional payment is required;- If the wage payment delay is 15 days or more, an additional amount of at least the delayed wages multiplied by the ceiling interest rate for 01-month term deposits announced by the State Bank of Vietnam at the time of payment must be paid. If the State Bank of Vietnam does not stipulate a ceiling interest rate, it shall be calculated according to the 01-month term deposit interest rate of the commercial bank where the enterprise or agency has its transaction account announced at the time of payment.

The company's delay or withholding of employees' wages is against the law. Therefore, employees must request the company to make full and timely wage payments. If the company does not comply, employees have the right to file a complaint with the Department of Labor, War Invalids, and Social Affairs where the company is headquartered to request a labor mediator to resolve and protect their rights.

In case the Department of Labor, War Invalids, and Social Affairs cannot resolve the issue, employees have the right to submit (attached with all necessary documents) a complaint to initiate a lawsuit at the local People's Court.

Regarding the dispute resolution procedures mentioned above, employees should note the statute of limitations for requesting dispute resolution stipulated in Article 202 of the Labor Code 2012 as follows:

- The statute of limitations for requesting a labor mediator to mediate individual labor disputes is 06 months from the date when the disputed party discovers that their legitimate rights and interests have been infringed.- The statute of limitations for requesting the Court to resolve individual labor disputes is 01 year from the date when either disputing party discovers that their legitimate rights and interests have been infringed.

Employers who commit violations on late wage payments will be administratively handled according to Clause 3 Article 13 of Decree 95/2013/ND-CP as follows:

- From VND 5,000,000 to VND 10,000,000 for violations involving 01 to 10 employees;- From VND 10,000,000 to VND 20,000,000 for violations involving 11 to 50 employees;- From VND 20,000,000 to VND 30,000,000 for violations involving 51 to 100 employees;- From VND 30,000,000 to VND 40,000,000 for violations involving 101 to 300 employees;- From VND 40,000,000 to VND 50,000,000 for violations involving 301 employees or more.

At the same time, employers are required to pay the full wages to employees along with the interest on the late wages calculated at the maximum interest rate for non-term deposits announced by the State Bank of Vietnam at the time of wage payment.

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