Year-end is the time when enterprises review their business activities for a year. On this basis, enterprises will consider Tet bonus and 13th month salary for employees with good achievements. If the employee quits before this time, the above salary and bonus may be forfeited.
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Tet bonus and 13th month salary are considered as an annual "practice", which means that the employer rewards employees based on the employee's performance in the past year.
Thus, what are provisions on these bonuses in accordance with Vietnamese law?
Pursuant to Article 104 of the Labor Code 2019 of Vietnam, bonuses are prescribed as following:
1. A bonus means an amount of money, a piece of property or item that is provided by an employer for his/her employees on the basis of the business performance or the employees’ performance.
2. A bonus regulation shall be decided and publicly announced at the workplace by the employer after consultation with the representative organization of employees (if any).
The word "bonus" defined by the 2019's Labor Code can be money or property, instead of just money as stated in the 2012's Labor Code. However, according to the spirit of the Labor Code 2019, employers are not required to give Tet bonus or 13th month salary to employees.
The time when enterprises conduct Tet bonuses for employees is usually the end of the year, on the occasion of the Lunar New Year. In case an employee quits before this time, it is very likely that he will be disadvantaged for not being considered by the enterprise for Tet bonus or 13th month salary bonus. Concurrently, if the enterprise "oppresses" the employee to decide not to reward, there is also no basis to force enterprises to reward because the law does not stipulate compulsory Tet bonus, 13th month bonus.
The employee leaving the job may be in the case of expiration of the labor contract or unilateral termination of the labor contract. The Labor Code 2019 of Vietnam stipulates cases of termination of an employment contract as follows:
(1) The employment contract expires, except for the case specified in Clause 4 Article 177 of the Labor Code 2019.
(2) The tasks stated in the employment contract have been completed.
(3) Both parties agree to terminate the employment contract.
(4) The employee is sentenced to imprisonment without being eligible for suspension or release as prescribed in Clause 5 Article 328 of the Criminal Procedure Code of Vietnam, capital punishment or is prohibited from performing the work stated in the employment contract by an effective verdict or judgment of the court.
(5) The foreign employee working in Vietnam is expelled by an effective verdict or judgment of the court or a decision of a competent authority.
(6) The employee dies; is declared by the court as a legally incapacitated person, missing or dead.
(7) The employer that is a natural person dies; is declared by the court as a legally incapacitated person, missing or dead. The employer that is not a natural person ceases to operate, or a business registration authority affiliated to the People’s Committee of the province (hereinafter referred to as “provincial business registration authority”) issues a notice that the employer does not have a legal representative or a person authorized to exercise the legal representative’s rights and obligations.
(8) The employee is dismissed for disciplinary reasons.
(9)The employee unilaterally terminates the employment contract in accordance with Article 35 of the Labor Code 2019.
(10) The employer unilaterally terminates the employment contract in accordance with Article 36 of the Labor Code 2019.
(11) The employer allows the employee to resigns in accordance with Article 42 and Article 43 of the Labor Code 2019.
(12) The work permit or a foreign employee expires according to Article 156 of the Labor Code 2019.
(13) The employee fails to perform his/her tasks during the probationary period under the employment contract or gives up the probation.
Thuy Tram
- Key word:
- Labor Code 2019
