New notable regulations on salaries and bonuses for 2021 in Vietnam

New notable regulations on salaries and bonuses for 2021 in Vietnam (Internet image)

1. Not to force employees to use their salary to buy goods and services from the employer or other units in Vietnam

According to Clause 2 of Article 94 of the Labor Code 2019, it is stipulated as follows:

The employer must not restrict or interfere with the employee's right to decide on salary spending; Employees must not be forced to spend their salary on purchasing goods or using services from the employer or another unit designated by the employer.

Meanwhile, in Article 96 of the Labor Code 2012 (expiring on January 1, 2021), there is no such regulation. It can be seen that, according to the new regulations, employees have full freedom to decide how to spend their salary without restriction or interference from the employer.

2. To notify employees of salary statements each time they are paid

Specifically, Article 95 of the Labor Code 2019 stipulates the payment of wages to employees as follows:

Every time you get paid, the employer must notify the employee of the salary statement, clearly stating the salary, overtime salary, night work salary, content, and amount deducted (if any). .

This is a new content compared to the Labor Code 2012. In addition, the Labor Code 2019 also clearly states that employers pay employees based on the agreed salary, labor productivity, and quality of work performance. The salary stated in the labor contract and the salary paid to the employee are in Vietnamese dong. If the employee is a foreigner in Vietnam, it can be in foreign currency.

3. Employers must bear the cost of opening accounts for employees if they pay salaries through banks

According to Clause 2 of the Labor Code 2019, in the case of salary payment through an employee's personal account opened at a bank, the employer must pay fees related to opening the account and transferring salary.

Previously, the Labor Code 2012 only stipulated that in cases of payment via bank account, the employer must agree with the employee on fees related to opening and maintaining the account.

Thus, from 2021, employers are obliged to pay account opening fees and salary transfer fees for paying employees via bank accounts.

4. If the salary is delayed for more than 15 days, the employee will receive an additional amount of money

Specifically, according to Clause 4, Article 97 of the Labor Code 2019, if salary payment is delayed for 15 days or more, the employer must compensate the employee with an amount at least equal to the interest on the deferred payment calculated based on the 1-month term deposit interest rate announced by the bank where the employer opens the employee's salary account at the time of salary payment.

Accordingly, from 2021, if salary payment is delayed for 15 days or more, employees will receive an additional amount of money in addition to the salary paid. This is a new regulation compared to the Labor Code 2012.

5. Employees to have longer National Day leave and receive full salary

Previously, the Labor Code 2012 only allowed employees to take National Day leave with full pay for 1 day (September 2 of the solar calendar). From 2021, employees will have 2 days off for the National Day holiday (September 2 of the solar calendar and 1 day immediately before or after), according to Point dd, Clause 2, Article 112 of the Labor Code 2019.

6. Additional cases where employees are allowed to take personal leave and receive full salary

According to Point c, Clause 1, Article 115 of the Labor Code 2019, employees are entitled to personal leave and still receive full salary in the case of "biological father, biological mother, adoptive father, adoptive mother; biological father, biological mother, adoptive father, adoptive mother of the spouse; wife or husband; biological and adopted children die". Previously, the Labor Code 2012 did not stipulate that employees could take leave with full pay if their adoptive father or adoptive mother; The adoptive father or adoptive mother of the spouse or adopted child dies (point c of Clause 1 of Article 116).

It should be noted that employees must notify the employer in cases of personal leave while still receiving full salary, as prescribed in Clause 1 of Article 115 of the Labor Code 2019.

7. Additional regulations on termination pay

According to Article 99 of the Labor Code 2019, it is specifically regulated in cases where work must be stopped due to electricity or water problems that are not due to the employer's fault or due to natural disasters, fires, dangerous epidemics, enemy sabotage, relocation of operating locations at the request of competent state agencies, or for economic reasons. The two parties agree on the salary for termination of work as follows:

In the event of stopping work for 14 working days or less, the agreed salary for stopping work is not lower than the minimum wage;

In the event that they have to stop working for more than 14 working days, the salary for stopping work will be agreed upon by both parties, but they must ensure that the salary for stopping work for the first 14 days is not lower than the minimum wage.

Previously, it was only stipulated that the salary for stopping work in the above cases would be agreed upon by both parties but could not be lower than the regional minimum wage prescribed by the Government (Clause 3, Article 98 of the Labor Code 2012).

8. Employees have the right to unilaterally terminate the contract without prior notice if they are not paid in full or are not paid on time.

Previously, according to Clause 1 of Article 37 of the Labor Code 2012, employees had the right to unilaterally terminate the labor contract in case of not being paid in full or not being paid on time as agreed in the labor contract, but must ensure a notice period of at least 03 working days to the employer.

However, from 2021 on, employees have the right to unilaterally terminate the labor contract without prior notice if they are not paid in full or are not paid on time, except in the case of force majeure, and the employer must compensate the employee with an amount of money for late salary payments according to regulations (according to Point b of Clause 2 of Article 35 and Clause 4 of Article 97 of the Labor Code 2019).

Bao Ngoc

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