From January 01, 2021, when the Labor Code 2019 of Vietnam officially takes effect, employees will enjoy more benefits compared to current regulations. Particularly, employees may leave without notice if the company regularly pays salary late.
Article table of contents
According to Article 97 of the Labor Code 2019 of Vietnam, salary payment time is specified as follows:
- An employer who receives an hourly, daily or weekly salary shall be paid after every working hour, day or week respectively, or shall receive a sum within not more than 15 days as agreed by both parties.
- An employee who receives a monthly or bi-weekly salary shall be paid after every month or every two weeks respectively.
- An employee who receives a piece rate or a fixed amount shall be paid as agreed by both parties.
- In case of a force majeure event in which the employer is unable to pay the employee on schedule after all remedial measures have been implemented, the salary shall be paid within 30 days. In case a salary is paid at least 15 days behind schedule, the employer shall pay the employee a compensation that is worth at least the interest on the amount paid behind schedule at the latest 1-month interest rate quoted by the bank at which the employee’s salary account is opened.
Besides, according to Clause 2 Article 35 of the Labor Code 2019 of Vietnam, an employee is shall have the right to unilaterally terminate the employment contract without prior notice if he/she:
- is not assigned to the work or workplace or not provided with the working conditions as agreed in the employment contract, except for the cases specified in Article 29 of this Labor Code;
- is not paid adequately or on schedule, except for the case of a force majeure event in which the employer is unable to pay the employee on schedule after all remedial measures have been implemented;
- is maltreated, assaulted, physically or verbally insulted by the employer in a manner that affects the employee’s health, dignity or honor; is forced to work against his/her will;
- is sexually harassed in the workplace;
- is pregnant and has to stop working if having a confirmation from a competent health facility which states that if she continues to work, it may adversely affect her pregnancy;
- reaches the retirement age according to regulations, unless otherwise agreed by the parties; or
- finds that the employer fails to provide truthful information in a manner that affects the performance of the employment contract.
These are completely new provisions compared to the Labor Code 2012. The Labor Code 2019 of Vietnam has specified cases that employees are permitted to unilaterally terminate the employment contract without prior notice.
Thus, according to the above provisions, an employer who receives an hourly, daily or weekly salary, in case that the employer regularly pays salary late, shall have the right to unilaterally terminate the employment contract without prior notice. Concurrently, in case a salary is paid at least 15 days behind schedule, the employer shall pay the employee a compensation that is worth at least the interest on the amount paid behind schedule at the latest 1-month interest rate quoted by the bank at which the employee’s salary account is opened.
It can be seen that legislators have relied on practical cases and inadequacies when applying the Labor Code 2012 to specifically stipulate the right to unilaterally terminate labor contracts without prior notice for some special cases and the extent to which compensation for employees in case of late payment of wages from 2021 right at the Labor Code 2019 of Vietnam.
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- Labor Code 2019
