Vietnam: Many enterprise shall give Tet bonuses in 2021 in forms of properties or spirit

Specifically, according to Clause 1 Article 104 of the Labor Code 2019 of Vietnam: “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.”

According to this provision, the State allows enterprises to reward employees in the form of bonuses, properties, products of the enterprise, morale, etc. This is a prominent new regulation because previously the Labor Code 2012 of Vietnam only allowed enterprises to reward employees in cash.

In 2020, due to the Covid - 19 epidemic that occurred at the beginning of the year and by the end of the year, the situation was still tense, leading to the world economy falling into a difficult situation, not only Vietnam. That also leads to high unemployment rate, business bankruptcy, business suspension, workforce reduction, cost reduction; it is also very difficult for workers to lose their jobs, have their wages cut, or to find a new job in 2020.

With new regulations of the Labor Code 2019 of Vietnam, Tet bonus in 2021 will have many changes compared to the previous year. Many businesses still operate but have no revenue, or revenue is reduced, so they have to consider the plan to cut Tet bonuses of employees.

So, for Tet bonus in 2021, any business that still maintains Tet bonuses for employees with money is a precious thing, businesses with less revenue shall reward with assets, in kind, with the company's own products. It's a good thing, but if the business pays Tet only in terms of spirit or cuts it off, it can't be blamed on the business side, but the employee and the employer must together overcome this difficult year, economic crisis.

Both the Labor Code 2012 and the Labor Code 2019 of Vietnam do not stipulate that enterprises are required to give Tet bonuses to employees, but only stipulate forms of bonuses. So this year, it is legal for businesses to not give Tet bonuses to employees or change the form of bonuses, but to promote and encourage the working spirit of employees during a year of giving their best to the business. Enterprises should have Tet bonuses worthy of the efforts of employees to develop the business.

Le Hai

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