Vietnam: Enterprises paying wages to employees must include a detailed note

Starting from January 01, 2021, employees will have many new benefits under the provisions of the Labor Code 2019 in comparison with the previous provisions. In which, when paying salary, the employer shall provide the employee with a note specifying salaries.

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Specifically, according to Article 95 of the Labor Code 2019 of Vietnam, the employer shall pay the employee on the basis of the agreed salary, productivity and work quality. Every time salary is paid, the employer shall provide the employee with a note specifying the salary, overtime pay, night shift pay and deductions (if any).

In comparison with the previous provisions, the Labor Code 2012 of Vietnam does not stipulate that the employer shall provide the employee with a note specifying the salary, overtime pay, night shift pay and deductions. Due to the optionality of this provision, there were just a few employers who provide employees with a note of salary.

Thus, from the time of salary payment in January 2021, when paying salary, the employer shall provide the employee with a note specifying the salary, overtime pay, night shift pay and deductions (if any). With this mandatory regulation, employees will know exactly how their wages are paid and deducted, which is also the right of each employee.

Besides, according to Clause 1 Article 94 of the Labor Code 2019 of Vietnam, there is one supplemented right for employees when receiving salary compared to the Labor Code 2012 of Vietnam. In particular:

Employers shall directly, fully and punctually pay salaries to their employees. In the cases where an employee is not able to directly receive his/her salary, the employer may pay it through a person legally authorized by the employee.

Thus, according to the above regulations, from the time of salary payment in January 2021, in case the employee cannot receive the salary him/herself, the enterprise can pay the salary to the person legally authorized by the employee (usually, this provision will apply to employees who receive their salary in cash for reasons such as illness, business travel or some other obstacle that he/she cannot come to the company to receive wages hím/herself). However, this is not a mandatory regulation, so enterprises have the right to refuse to pay wages to authorized employees.

Ty Na

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