In what cases is the employer allowed to deduct the employee's salary in Vietnam? Can enterprises deduct employees' wages when they come to work late, work separately or fail to complete their tasks? This is a question that LAWNET has received quite a lot from our customers and members.
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In what cases is the enterprise allowed to deduct the employee's salary in Vietnam? (Illustration)
Regarding this issue, LAWNET would like to answer as follows:
According to the provisions of Article 102 of Vietnam's Labor Code 2019, the employer is only entitled to deduct the employee's salary to compensate for damage caused by damage to tools, equipment, and property of the employer as prescribed in Article 129 of this Code. Specifically, Article 129 provides for compensation for damage as follows:
Article 129. Compensation for damage
1. An employee who causes damage to equipment or otherwise damages the employer’s assets shall have to pay compensation in accordance with labor laws or the employer’s internal labor regulations.
In case the damage caused by an employee is not serious, not deliberate and is worth less than 10 months’ region-based minimum wage announced by the Government, the employee shall have to pay a compensation of not more than his/her 03 months’ salary, which shall be monthly deducted from his/her salary in accordance with Clause 3 Article 102 of this Code.
2. An employee who loses the employer’s equipment or assets, or consumes the materials beyond the set limits shall pay a compensation for damage in full or in part at the market price or as stipulated in the internal labor regulations or the responsibility contract (if any). In case this is caused by a natural disaster, fire, war, major epidemic, calamity, or another force majeure event which is unforeseeable and insurmountable, and all necessary measures and possibilities for avoidance have been taken, the compensation shall not required.
Thus, it can be seen that, according to this regulation, a salary deduction is the employer's deduction from a part of the employee's monthly salary to compensate for the damage caused by the employee. Employers may only deduct employees' wages in the following 3 cases:
(1) The employee damages tools or equipment or engages in other acts that result in property damage;
(2) The employee misplaces tools, equipment, employer property, or other property assigned by the employer;
(3) The employee consumes materials in excess of the permissible limit.
Note: The employee has the right to know the reason for his or her salary deduction.
- Key word:
- Labor Code 2019 of Vietnam
