Can the company arbitrarily give employees unpaid leave in Vietnam?

In many cases, companies arbitrarily let employees take unpaid leave for a certain period of time. So, is company allowed to arbitrarily give employees unpaid leave in Vietnam?

Can the company arbitrarily give employees unpaid leave in Vietnam? (Illustration)

Pursuant to the regulations of Vietnam's Labor Code 2019, an employee is only required to take unpaid leave in the following cases:

(1) Initiatively negotiate with the company about unpaid leave

According to Clause 3, Article 115 of Vietnam's Labor Code 2019, an employee can agree with the employer to take unpaid leave.

(2) When the employee's relative gets married or dies

Specifically, the employee is entitled to 01 day of unpaid leave and must notify the employer when his/her grandfather, grandmother, brother, sister, or younger brother dies; his/her parents remarry; or siblings get married (according to Clause 2, Article 115 of the Labor Code 2019).

(3) In case of stoppage due to the fault of the employee

In Clause 2, Article 99 of Vietnam's Labor Code 2019 stipulates:

If an employee has to stop working due to his or her own fault, he or she will not be paid.

(4) Fail in one of the cases involving labor contract suspension.

According to Article 30 of Vietnam's Labor Code 2019, during the period of suspension of the performance of the labor contract, the employee is not entitled to the salary and rights and benefits signed in the labor contract, unless otherwise agreed by the two parties or otherwise provided by law.

Cases involving labor contract suspension include:

- The employee performs military service or the obligation to join the Militia and Self-Defense Force;

- The employee is held in custody or temporary detention in accordance with the law on criminal procedures;

- The employee must abide by the decision to apply the measure of sending to a reformatory, compulsory rehab establishment, or compulsory education institution;

- Pregnant female employees, if certified by a competent medical facility, that continuing to work will adversely affect the fetus;

- The employee is appointed as an enterprise manager of a one-member limited liability company in which 100% of the charter capital is held by the State;

- The employee is authorized to exercise the rights and responsibilities of the state owner's representative for the state capital in the enterprise;

- The employee is authorized to exercise the rights and responsibilities of the enterprise with respect to the capital portion of the enterprise invested in another enterprise;

- Other cases as agreed by both parties.

Thus, the company is not allowed to arbitrarily give employees unpaid leave. Only when there is a reason in the cases prescribed by the law above or there is an agreement between the employee and the company, is the company allowed to let the employee take unpaid leave.

What are the penalties for arbitrarily making employees take unpaid leave illegally?

If the company requires the employee to quit without agreement and without other reasons, it will be considered a stoppage due to the employer's fault. At that time, the employee must be paid in full according to the labor contract during the time off (according to Clause 1, Article 99 of the Labor Code).

If the company allows employees to take leave without paying salary, they will be fined for administrative violations according to Clause 2, Article 17 of Decree 12/2022/ND-CP. The fine shall be based on the number of unpaid employees, specifically:

- From VND 5,000,000 to VND 10,000,000 for violations from 01 to 10 employees;

- From 10,000,000 VND to 20,000,000 VND for violations from 11 to 50 employees;

- From VND 20,000,000 to VND 30,000,000 for violations of between 51 and 100 employees;

- A fine from 30,000,000 VND to 40,000,000 VND for violations from 101 to 300 employees;

- From VND 40,000,000 to VND 50,000,000 for violations of 301 employees or more.

In addition, the company is also required to pay the full salary plus interest on the late payment calculated at the highest interest rate on demand deposits of state-owned commercial banks announced at the time of fine settlement (according to point a, clause 5, Article 17 of Decree 12/2022/ND-CP).

>> See more What is the maximum number of unpaid leave can an employee take?

Bao Ngoc


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