This is an entirely new provision in the Draft Decree detailing the implementation of certain articles of the Labor Code regarding labor management, labor contracts, wages, labor discipline, and material responsibility, which is currently open for public consultation online and is expected to take effect from January 01, 2021.
Article table of contents
Procedure Sequence, Handling Compensation for Damages for Employees
To be specific, according to this Draft, the sequence and procedure for handling compensation for damages as stated in Clause 2, Article 130 of the Labor Code 2019 are regulated as follows:
Upon discovering that an employee has caused damage to property, the employer shall request the employee to provide a written report on the incident.
Within the statute of limitations for handling compensation for damages stated in Article 18 of this Decree, the employer shall conduct a meeting to handle compensation for damages as follows:
- At least 5 working days before conducting the meeting to handle compensation for damages, the employer shall notify the parties required to attend, including the employee, the legal representative of an employee under 15 years old, the employee's representative organization at the establishment to which the employee is a member, and the price appraiser (if any). The content of the notification must specify the time, location of the meeting; the full name of the individual being dealt with for compensation for damages; and the violation act.
- In case any of the above-mentioned parties cannot attend at the notified time and location, the employee and the employer shall agree on changing the meeting time and location; if no agreement is reached, the employer shall decide.
- The employer shall conduct the compensation for damages meeting at the notified time and location as stated above. In the event any of the required parties mentioned in point a are absent, the employer shall still proceed with the meeting in accordance with the law.
The content of the compensation for damages meeting must be recorded in minutes, approved before the meeting ends, and signed by the attending parties as required. If anyone does not sign the minutes, the reason must be stated.
The decision on handling compensation for damages must be issued within the statute of limitations for handling compensation for damages. The decision must specify the level of damage; cause of damage; level of compensation for damages; time limit, and form of compensation for damages, and must be sent to the required parties.
Furthermore, the Draft also specifies the statute of limitations for handling compensation for damages as follows:
- The statute of limitations for handling compensation for damages is 04 months from the date the employee’s act causing damage to property is discovered.
- No handling of compensation for damages for employees during the period stated in Clause 4, Article 122 of the Labor Code.
- When the period stated in Clause 4, Article 122 of the Labor Code ends, if the statute of limitations has expired or if there is insufficient time left in the statute of limitations, the statute of limitations can be extended but no more than 60 days from the end of the stated period.
Currently, the regulations on compensation for damages are also mentioned in Decree 05/2015/ND-CP, however, the sequence, procedure, and statute of limitations for handling compensation for damages are not specifically regulated but are only generally stated to be applied according to the sequence, procedure, and statute of limitations for handling labor discipline.
Nguyen Trinh
