Vietnam: Not being paid, what should employees do?

Salary payment rules in Vietnam

Pursuant to the provisions of Article 94 of the Labor Code 2019, salary payment rules include:

- 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.

- Employers must not restrict or interfere their employees’ spending of their salaries; must not force their employees to spend their salaries on goods or services of the employers or any particular providers decided by the employers.

Vietnam: Not being paid, what should employees do? (Internet image)

Salary payment time in Vietnam

Issues related to salary payment terms are specifically stipulated in Article 97 of the Labor Code 2019. 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.

Issues related to salary payment terms are specifically stipulated in Article 97 of the Labor Code 2019. 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.

Employees who are not paid wages can use the following methods to protect their rights. Specifically includes:

- Send a request directly to the company's board of directors requesting salary settlement.

- Complaint to the Chief Inspector of the Department of Labor, War Invalids, and Social Affairs based on the provisions of Article 15 of Decree 24/2018/ND-CP and a complaint to the Department of Labor, War Invalids, and Social Affairs will only be received after the first complaint has been made to the employer but is not resolved or disagrees with the resolution decision.

- Mediation through a Labor Mediator

- According to Clause 1, Article 190 of the Labor Code 2019, the statute of limitations for requesting a settlement by a labor conciliator is 06 months from the date of discovering that your legal rights and interests have been violated.

- In case the conciliation fails or succeeds but the employer does not perform or the settlement period expires, the employee can request the Labor Arbitration Council or the Court to resolve the matter.

- Resolved by the Labor Arbitration Council. According to Article 189 of the Labor Code 2019, this method is carried out after going through the mediation step through the Labor Mediator. At the same time, disputes can only be resolved by the Labor Arbitration Council when both parties agree to choose.

- File a lawsuit in Court. According to the provisions of Clause 1, Article 188 of theLabor Code 2019, salary disputes must go through conciliation procedures by a Labor Conciliator, then be sued in Court.

File a lawsuit to request settlement of the situation of employers not paying salaries (Illustration)

Time limits for requesting settlement of individual labor disputes in Vietnam

- The time limit to request a labor mediator to settle an individual labor dispute is 06 months from the date on which a party discovers the act of infringement of their lawful rights and interests.

- The time limit to request a Labor Arbitration Council to settle an individual labor dispute is 09 months from the date on which a party discovers the act of infringement of their lawful rights and interests.

- The time limit to bring an individual labor dispute to the Court is 01 year from the day on which a party discovers the act of infringement of their lawful rights and interests.

- In case the requester is able to prove that the aforementioned time limits cannot be complied with due to a force majeure event or unfortunate event, the duration of such event shall not be included in the time limit for requesting settlement of individual labor dispute.

Pursuant to the provisions of Article 190 of the Labor Code 2019.

Penalty for act of not paying salaries on time in Vietnam

Penalties for not paying salaries on time are specified in Article 16 of Decree 28/2020/ND-CP are as follows:

- Fines will be imposed on employers who commit one of the following acts: Untimely payment of wages at one of the following levels:

- A fine ranging from VND 5,000,000 to VND 10,000,000 to be imposed if the violation involves 01 – 10 employees;

- A fine ranging from VND 10,000,000 to VND 20,000,000 to be imposed if the violation involves 11 – 50 employees;

- A fine ranging from VND 20,000,000 to VND 30,000,000 to be imposed if the violation involves 51 – 100 employees;

- A fine ranging from VND 30,000,000 to VND 40,000,000 to be imposed if the violation involves 101 – 300 employees;

- A fine ranging from VND 40,000,000 to VND 50,000,000 to be imposed if the violation involves 301 or more employees.

- Remedial measures

• Compelling the full repayment of wage and salary plus the amount of late payment interest calculated at the highest demand deposit interest rates publicly quoted by state-owned commercial banks on the date of imposition of such penalty for the violations specified in clause 2 and 3 of Article 16 of Decree 28/2020/ND-CP;

• FCompelling offenders that commit the violations prescribed in clause 4 of Article 16 of Decree 28/2020/ND-CP to make full payment in proportion to the rates of compulsory social insurance, health insurance, unemployment insurance and annual leave allowance to employees.

Hai Tien

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