Cases of employees receiving suspension pay in Vietnam

Cases of employees receiving suspension pay in Vietnam (Internet image)

1. Salary payment rules in Vietnam

According to Article 94 of the Labor Code 2019, the salary payment rules in Vietnam are as follows:

- 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;

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

2. Form of salary payment in Vietnam

According to Article 54 of Decree 145/2020/ND-CP, the forms of salary payment in Vietnam prescribed in Article 96 of the Labor Code 2019 are elaborated as follows:

-  The employer and employee shall reach an agreement on whether the salary is time-based, product-based (piece rate) or a fixed amount. To be specific:

+ Time-based salary shall be paid to the employee monthly, weekly, daily or hourly as agreed in the employment contract. To be specific:

* Monthly salary is the salary for a month’s work;

* Weekly salary is the salary for a week’s work. In case monthly salary is specified in the employment contract, the weekly salary equals (+) the monthly salary multiplied by (x) 12 months and divided by (:) 52 weeks;

* Daily salary is the salary for a days’ work. In case monthly salary is specified in the employment contract, the daily salary equals (+) the monthly salary divided by (:) the number of normal working days in a month as decided by the employer. In case weekly salary is specified in the employment contract, the daily salary equals (+) the weekly salary divided by (:) the number of working days in a week as specified in the employment contract;

* Hourly salary is the salary for an hour’s work. In case monthly, weekly or daily salary is specified in the employment contract, the hourly salary equals (+) the daily salary divided by (:) the number of normal working hours in a day as prescribed by Article 105 of the Labor Code 2019.

+ Piece rate pay is paid to piece workers according to the quantity and quality of products, productivity norms and unit prices of the products.

+ Fixed salary is paid according to the quantity and quality of works and time needed for completion of these works.

- Salary shall be paid in cash or transferred to the employee’s personal bank account.

In case of bank transfer, the employer shall pay the costs of account opening and transfer.

3. Cases of employees receiving suspension pay in Vietnam

In case of having to stop working, the employee shall be paid as follows:

- If it is the fault of the employer, the employee will be paid the full salary according to the labor contract;

- If it is the fault of the employee, that person will not be paid; other employees in the same unit who have to stop working shall be paid at the rate agreed upon by the two parties but must not be lower than the minimum wage;

- If there is an electricity or water problem that is not due to the fault of the employer or due to natural disasters, fires, dangerous epidemics, enemy sabotage, relocation of operation locations at the request of competent state agencies. authority or for economic reasons, the two parties shall agree on the salary for termination of work as follows:

+ In case of stopping work for 14 working days or less, the agreed-upon stoppage salary is not lower than the minimum wage;

+ In case of having to stop working for more than 14 working days, the salary for stopping work shall be agreed upon by both parties, but the salary for stopping work in the first 14 days must not be lower than the minimum wage.

(Article 99 of the Labor Code 2019)

In addition, according to Clause 4, Article 29 of the Labor Code 2019, there are regulations on reassigning employees in case of having to stop working, as follows:

In case the employee refuses to be reassigned for more than 60 working days in 01 year and has to suspend the employment, he/she shall receive the suspension pay from the employer in accordance with Article 99 of this Labor Code.

Nguyen Ngoc Que Anh

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