In fact, there are currently many cases where businesses intentionally delay paying wages to employees. So, in this case, how are businesses sanctioned?
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Delayed salary payment to employees, how will the enterprise be penalized? (Illustrative image)
The editorial team at THU KY LUAT would like to address this issue as follows:
1. Enterprises are not allowed to delay salary payments to employees for more than 01 month
Based on Article 24 Decree 05/2015/ND-CP, the principles of salary payment to employees are stipulated as follows:
- Employees are paid their salaries directly, fully, and timely.
- In special cases due to natural disasters, fires, or other force majeure reasons where the employer has taken all remedial measures but cannot pay the salary on time as agreed in the labor contract, the delay shall not exceed 01 month. The compensation for employees due to delayed salary payment is stipulated as follows:- If the delay is under 15 days, no additional payment is required;- If the delay is 15 days or more, an additional amount at least equal to the delayed salary multiplied by the highest 01-month term deposit interest rate announced by the State Bank of Vietnam at the time of payment must be paid.
Thus, under the above regulations, employees receiving monthly salaries are to be paid monthly or bi-monthly directly, fully, and on time. However, in special cases due to natural disasters, fires, or other force majeure reasons where the employer has taken all remedial measures but cannot pay the salary on time as agreed in the labor contract, the salary delay shall not exceed 01 month.
2. Enterprises may be fined up to 100 million VND if salaries are delayed for employees
According to Clause 2, Article 16 of Decree 28/2020/ND-CP, fines are imposed on employers for delaying salary payments, not paying, or not paying sufficient salaries to employees as agreed in the labor contract. The fines are as follows:
- A fine ranging from 5 million to 10 million VND for violations involving 01 to 10 employees;- A fine ranging from 10 million to 20 million VND for violations involving 11 to 50 employees;- A fine ranging from 20 million to 30 million VND for violations involving 51 to 100 employees;- A fine ranging from 30 million to 40 million VND for violations involving 101 to 300 employees;- A fine ranging from 40 million to 50 million VND for violations involving 301 or more employees.
However, the above fines apply to individual employers. For organizational employers, the fines are doubled according to Clause 2, Article 5 of Decree 28/2020/ND-CP.
Thus, based on the above regulations, enterprises can be fined up to 100 million VND if they intentionally delay salaries for employees. Therefore, enterprises need to ensure timely payment of salaries to employees to avoid penalties as per legal provisions. Meanwhile, employees should be aware to protect their rights.
Ty Na
