Vietnam: Regulations on unpaid leave that employees need to know

How many days of unpaid leave do employees get in Vietnam? How long do you take unpaid leave in a month to be exempt from paying social insurance? – Thuy Nga (Ha Tinh, Vietnam)

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Vietnam: Regulations on unpaid leave that employees need to know (Internet image)

How many days of unpaid leave do employees get in Vietnam?

Currently, Article 115 of the Labor Code 2019 stipulates unpaid leave for employees as follows:

- An employee is entitled to take 01 day of unpaid leave and must inform the employer in the case of the death of his/her grandparent or biological sibling; marriage of his/her parent or natural sibling.

- The employee may negotiate with his/her employer on taking unpaid leave.

What are the penalties for refusing to give employees unpaid leave in Vietnam?

According to the law, an employer is only required to give an employee unpaid leave in the case of the death of his/her grandparent or biological sibling; marriage of his/her parent or natural sibling.

If employees are not allowed to take unpaid leave, the employer will be sanctioned for administrative violations Clause 1, Article 18 of Decree 12/2022/ND-CP:

Article 18. Violations against regulations on working hours and rest periods

1. A fine ranging from VND 2.000.000 to VND 5.000.000 shall be imposed upon an employer for commission of one of the following violations:

a) Failing to grant personal leave or unpaid leave to employees in accordance with regulations of law;

Thus, the fine shall be from 02 - 05 million VND for violations from individuals and from 04 to 10 million VND for violations from organizations.

In case an employee applies for unpaid leave for other reasons, the employer has the right to refuse this offer without being considered a violation of the law.

Is it required to pay social insurance for the unpaid leave in Vietnam?

In Clause 3, Article 85 of the Law on Social Insurance 2014 stipulates that employees who neither work nor receive salary for 14 working days or more in a month are not required to pay social insurance premiums in that month. This period shall not be counted for enjoyment of social insurance benefits, except cases of maternity leave.

In addition, Clause 4, Article 42 of Decision 595/QD-BHXH stipulates: Employees who do not work and do not receive wages for 14 working days or more in a month shall not pay social insurance contributions for that month. This period is not counted when receiving social insurance benefits.

In summary, in case of unpaid leave of 14 working days or more in a month, the employee is not required to pay social insurance contributions for that month.

Is unpaid leave counted in annual leave?

The time considered as working time to calculate the number of annual leave days of employees is specified in Decree 145/2020/ND-CP.

Article 65. Periods included in working time as the basis for calculation of annual leave

1. Vocational training and apprenticeship period prescribed in Article 61 of the Labor Code 2019 if the employee works for the employer after the end of the vocational training or apprenticeship period.

2. Probation period if the employee keeps working for the employer after the end of the probation period.

3. Personal leave prescribed in Clause 1 Article 115 of the Labor Code 2019.

4. Unpaid leave if accepted by the employer and not exceeding 01 month per year totally.

5. Leave taken due to occupational accidents or diseases if not exceeding 6 months totally.

6. Sick leave if not exceeding 02 months per year totally.

7. Maternal leave prescribed by social insurance laws.

8. Period of performance of duties of the internal employee representative organization that is included in working time as prescribed by law.

9. Work suspension and leave through no fault of the employee.

10. Suspension period after which the employee is exonerated or exempt from disciplinary actions.

According to the above regulations, the unpaid leave time, if agreed by the company, will still be counted as working time to calculate the number of annual leave days of the employee.

Note: The period of unpaid leave must be accumulated for no more than 1 month in the year to be calculated the number of annual leave days as prescribed.

Chau Thanh

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