Vietnam: The statute of limitations for handling compensation for damage at work is 6 months

Specifically, according to Article 72 of the Decree No 145/2020/NĐ-CP of Vietnam’s Government, the time limits for claiming compensation prescribed in Clause 2 Article 130 of the Labor Code of Vietnam are specified below:

- The time limit for claiming compensation is 06 months from the day on which the employee causes damages or loses an asset of the employer or otherwise causes damage to the employer’s assets or exceeds the consumption limit.

- Compensation shall not be claimed against employees during the periods in the cases specified in Clause 4 Article 122 of the Labor Code of Vietnam.

- At the end of the period specified in Clause 4 Article 122 of the Labor Code of Vietnam, if the time limit for claiming compensation has not expired or the remaining time is shorter than 60 days, the time limit may be extended for up to 60 more days from the end of the above-mentioned period.

Moreover, according to Article 73 of the Decree No 145/2020/NĐ-CP of Vietnam’s Government, a person who is disciplined, suspended from work or has to pay compensation is entitled to file a complaint to the employer or a competent authority in accordance with regulations of the Government on settlement of labor complaints individual labor disputes following the procedures in Section 2 Chapter XIV of the Labor Code of Vietnam.

In case the employer decides to dismiss an employee against the law, in addition to the obligations and responsibilities prescribed by regulations of the Government on settlement of labor complaints and individual labor disputes following the procedures in Section 2 Chapter XIV of the Labor Code of Vietnam, the employer also has the responsibilities specified in Article 41 of the Labor Code.

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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