The Lunar New Year 2021 is approaching, the issue that employees are most concerned about at this time is whether or not businesses will reward Tet, how much, and in what form. In this regard, the Labor Code 2019 of Vietnam clearly stipulates that from 2021, enterprises do not have to give Tet bonuses to employees in cash.
Article table of contents
According to Article 103 of the Labor Code 2012 of Vietnam, bonus is a sum of money paid by an employer to his/her employees on the basis of annual business results and the level of work performance of employees.
This regulation has limited the form of bonuses for employees only in the form of money when it is specified that "bonus is a sum of money".
According to the Labor Code 2019 of Vietnam, the provision is changed from “bonus in cash” to “bonus”, specifically as follows:
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).
Thus, from January 01, 2021, enterprises do not necessarily have to give Tet bonuses to employees in money but can be in flexible forms such as:
- Money;
- Property;
- Other forms.
Besides, the Labor Code 2019 of Vietnam still retains the spirit of the Labor Code 2012 when it is not compulsory for enterprises to give Tet bonuses to employees. Specifically, based on production and business results, the level of job completion of employees, the enterprise will decide whether to give Tet bonuses to employees or not.
>>> View more about this content: Are enterprises required to give Tet bonuses to employees?
The issue of Tet bonuses in cash or in kind is also a big concern for employees, because many people think "bonus in cash" will be more practical. However, the problem is that the Tet bonus will be decided by the business, if in that year the business is not efficient, there is no profit, it is likely that the employee will not have the bonus. The expansion of the form of Tet bonus by the law, in case enterprises do not have conditions to reward money, they can reward employees in the form of being the main kind from the products and goods of the company's production and business.
Therefore, the regulation that enterprises give Tet bonuses to employees not necessarily in cash is considered one of the notable new points in terms of salary and bonus in order to create favorable conditions for both enterprises and employees.
Thuy Tram
- Key word:
- Labor Code 2019
- Tet bonus
