From January 01, 2021, the Labor Code 2019 of Vietnam has stipulated many favorable policies for employees. In particular, employees can be paid in advance for the Lunar New Year holiday in 2021.
Article table of contents
According to current provisions of the Labor Code 2019 of Vietnam, a salary is an amount the employer pays the employee under an agreement for work performed by the latter. Salary equals base salary plus allowances and other additional amounts. Thus, the employer pays the employee based on the agreed salary, labor productivity and quality of work performance. Concurrently, the employee is entitled to advance salary even though the salary payment period has not yet been reached as agreed in the labor contract.
According to Article 101 of the Labor Code 2019 of Vietnam, employees are entitled to advance salary in the following cases:
(1) Salary advance in accordance with conditions agreed on by the two parties
An employee may receive an interest-free salary advance in accordance with conditions agreed on by the two parties. (Clause 1 Article 101 of the Labor Code 2019 of Vietnam)
(2) Salary advance when an employee performs duties of citizens
The employer must make the advance payment to the employee for the number of days the employee temporarily leaves his/her work in order to perform duties of citizens for a period of 01 week or longer, but the advance shall not exceed 01 month’s salary. The employee must reimburse the advance. (Clause 2 Article 101 of the Labor Code 2019 of Vietnam)
(3) Salary advance when an employee when an employee taking annual leave
When taking annual leave, an employee shall receive an advance payment of at least salary for the entitled days of leave. (Clause 3 Article 101 of the Labor Code 2019 of Vietnam)
(4) Salary advance in case an employee receives a piece rate or a fixed amount
An employee who receives a piece rate or a fixed amount shall be paid as agreed by both parties. In case a task cannot be completed within one month, the employee shall receive a monthly advance payment based on the amount of work done in the month. (Clause 3 Article 97 of the Labor Code 2019 of Vietnam)
(5) Salary advance for work suspension
During the suspension, the employee shall receive an advance of 50% of his/her salary entitled prior to the suspension. Where the employee is disciplined, he/she shall not be required to return the advanced salary. (Article 128 of the Labor Code 2019 of Vietnam)
Thus, based on the above provisions, it can be seen that the employee can agree with the enterprise on the advance payment of salary before the Lunar New Year holiday in 2021, if the two parties can agree on the conditions for the salary advance, employees will receive salary before Tet holiday to have more income to spend on Tet holiday.
The amount of advance is based on the agreement of the employee and the enterprise, so the amount of money the employee is advanced before this Lunar New Year holiday will not be limited to the maximum amount and is negotiated by the parties. Normally, the amount of advance will be based on the level proposed by the employee and the company's ability to meet.
Ty Na
