Vietnam: Enterprises have the right not to provide Tet bonus if employees do not complete the work

Specifically, according to Article 104 of the Labor Code 2019 of Vietnam:

Article 104. Bonuses

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).

This regulation has 02 notable contents:

(1) Labor Code 2019 stipulates “bonus” instead of “bonus money” of the Labor Code 2012.

The Labor Code 2019 of Vietnam has expanded the scope of Tet bonus for employees, according to which 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.

This is considered a new point to create favorable conditions for enterprises to have Tet bonuses for employees.

(2) Enterprises have the right not to provide Tet bonus if employees do not complete the work.

The Labor Code 2019 continues to inherit the spirit of the Labor Code 2012 when it does not stipulate that enterprises are required to give Tet bonuses for employees. Whether to give Tet bonus to employees or not will be based on:

- Production and business results;

- The employee's level of work completion.

The level of work completion of employees is one of the bases for enterprises to decide whether to give Tet bonuses to employees or not. In other words, if the employee does not complete the work, the enterprise has the right not to give Tet bonus.

Note: The work completion level of the employee is determined according to the criteria for assessing the job completion level in the employer's regulations. The criteria for assessment of employees’ fulfillment of duties shall be established by the employer with consideration taken of opinions offered by the representative organization of employees (if any) (Point a Clause 1 the Labor Code 2019 of Vietnam).

In short, whether to give Tet bonus to employees or not depends on the decision of the enterprise. Therefore, enterprises have the right not to give Tet bonus if employees do not complete the work.

>>> View more: Are enterprises required to give Tet bonuses to employees in Vietnam?

Thuy Tram

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