3 Things employees in Vietnam must know about bonuses for Lunar New Year 2021

3 Things employees in Vietnam must know about bonuses for Lunar New Year 2021 bonus (Illustration)

1. Employees in Vietnam shall receive bonuses for Lunar New Year 2021 in various forms

According to Article 104 of the Labor Code 2019, bonuses are money or assets or other forms that employers reward employees based on production and business results, and the completion level of work by employees. The bonus regulation is decided by the employer and publicly announced at the workplace after consulting with the employee representative organization at the facility if there is one.

In fact, companies have previously applied various forms of Lunar New Year bonuses for employees such as: cash bonuses, additional vacation days, cakes and candies, trips, etc. From 2021, the forms of bonuses will be specifically regulated in the Labor Code 2019 (previously only cash bonuses were regulated).

2. It is possible that there wil not be bonuses for Lunar New Year 2021

The global Covid-19 pandemic has severely impacted the world economy in general and Vietnam's economy in particular. In 2020, many businesses went bankrupt, temporarily ceased operations, or reduced staff to cope with the difficulties caused by the pandemic. Therefore, the bonuses for Lunar New Year 2021 regulation will inevitably be affected.

In reality, whether a company gives a bonus, how much, and in what form is decided by the company, based on the business performance and the completion level of work by employees.

Therefore, the law also stipulates that businesses are not required to give Tet bonuses to employees in all cases. Employees will receive Tet bonuses if there is an agreement in the labor contract, according to the company's internal bonus regulation, collective labor agreement, and largely dependent on the company's revenue, profits, and employee's work performance. Additionally, the company has the right not to give a Tet bonus if the business is not profitable or the employee does not complete their work.

3. Employees in Vietnam should ensure good job performance to receive bonuses for Lunar New Year 2021

Employees have worked hard with the company throughout a challenging year due to the Covid-19 pandemic. Therefore, everyone hopes to receive a bonus during Lunar New Year 2021. However, to ensure receiving a Tet bonus, employees first need to effectively complete their work to avoid situations leading to job termination at the end of this year.

Note: According to Article 36 of the Labor Code 2019, employers have the right to unilaterally terminate the labor contract in the following cases:

- The employee frequently fails to complete the work according to the labor contract, as determined by the criteria for evaluating work completion in the employer's regulation. The work completion evaluation criteria are issued by the employer but must consult with the employee representative organization at the facility if there is one;

- The employee is absent from the workplace after the allowed period when the labor contract is temporarily postponed;

- The employee voluntarily quits without a legitimate reason for 05 consecutive working days or more;

- The employee provides dishonest information when concluding the labor contract, affecting the recruitment process.

Lunar New Year 2021 is just around the corner; employees should pay attention to the above information about Tet bonus policies to ensure their rights.

Le Vy

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