The Labor Code 2019 has inherited the spirit of the Labor Code 2012 and introduced several changes to better align with labor relations. One notable change for employees in Vietnam is the payment for unused annual leave days.
Article table of contents
Annual leave is a period stipulated by law during which employees in Vietnam can take fully paid leave according to their employment contracts. This allows employees to restore their labor capacity after a long period of work. Any official employee working under an employment contract is entitled to enjoy this policy.
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Vietnam: Notable contents on annual leave from 2021 (illustrative photo)
According to Clause 1 Article 114 of the Labor Code 2012, employees who have not taken or have not entirely taken their annual leave for various reasons shall be paid compensation for the untaken leave days. Employees have the right to take annual leave and convert the untaken leave days into an equivalent amount of money.
However, under Clause 3 Article 113 of the Labor Code 2019, an employee who, due to employment termination or job loss, has not taken or has not entirely taken his/her annual leave shall be paid compensation for the untaken leave days.
The new code does not address the untaken leave days for employees who have not taken or have not entirely taken their annual leave and continue working at the company. Thus, employees who continue to work at the company and have untaken leave days will not be paid compensation for the untaken leave days.
Therefore, from January 1, 2021, if employees have not entirely taken their annual leave due to resignation or job loss, the company will pay compensation for the untaken leave days. Where employees have not entirely taken their annual leave for other reasons, the company will not pay compensation for the untaken leave days.
Thus, from 2021, employees must master the regulations regarding annual leave to ensure their legitimate rights and interests as follows:
+ How many annual leave days are stipulated for them according to Article 113 of the Labor Code 2019? Plan to use the leave days and inform the employer. An employee may reach an agreement with the employer on taking annual leave in installments or combining annual leave over a maximum period of up to 03 years.
+ When taking annual leave, should the employee travel by road, rail, water and travel days, the traveling time in excess to 02 days will be added to the annual leave days, and this policy shall only be granted once for annual leave in a year.
+ When an employee takes his/her annual leave before salary payment is due, he/she may receive an advance in accordance with Clause 3 Article 101 of the Labor Code 2019.
Long Binh
