Principles for handling compensation and reimbursement for public employees in Vietnam

Principles for handling compensation and reimbursement for public employees in Vietnam (Internet image)

Regarding this matter, LawNet would like to answer as follows: 

1. Cases for handling compensation and reimbursement for public employees in Vietnam

The cases handling compensation and reimbursement for public employees in Vietnam according to Article 24 of Decree 27/2012/ND-CP are as follows:

- If a public employee loses or damages equipment or assets of a public service provider, they are obligated to compensate according to the regulations stated in Decree 27/2012/ND-CP.

- If a public employee, while performing their assigned tasks or duties, commits an act that causes damage to others, the public service provider must compensate for the actual damage caused by the public employee, following the provisions of civil law regarding non-contractual liability for compensation. If the public service provider has already compensated for the damage caused by the public employee, the public employee has the obligation to reimburse the public service provider according to the regulations stated in Decree 27/2012/ND-CP.

2. Principles for handling compensation and reimbursement for public employees in Vietnam

The principles for handling compensation and reimbursement for public employees in Vietnam according to Article 25 of Decree 27/2012/ND-CP are as follows:

- The determination of the amount and method of compensation or reimbursement for the actual damage caused must be based on the fault and nature of the harmful act, as well as the extent of the actual property damage, ensuring objectivity, fairness, and transparency.

- Public employees who cause damage are responsible for compensation or reimbursement according to the decision of the head of the public service provider or the competent authority. If the public employee is unable to compensate in a single payment, 20% (twenty percent) of their monthly salary will be deducted until the compensation is fully paid, as determined by the competent authority.

- In cases where a public employee who caused damage is transferred, retired, or dismissed, they must fulfill their compensation or reimbursement obligations before the transfer, retirement, or dismissal. If they are unable to compensate or restitute, the public service provider managing the public employee is responsible for coordinating with the new organization, agency, or local authority where the public employee resides to continue collecting the compensation or reimbursement until it is fully paid, as determined by the competent authority.

If the public service provider managing the public employee who caused damage is dissolved or merged, the successor organization, agency, or unit is responsible for continuing to collect the compensation or reimbursement until it is fully paid, as determined by the competent authority.

In cases where a public employee who caused damage is sentenced to imprisonment without a suspended sentence, the executing agency is responsible for collecting compensation or reimbursement according to the decision of the judgment or effective decision of the court.

- In cases where two or more public employees jointly cause loss, damage, or damage to the property of the public service provider or cause damage to others that the public service provider must compensate, each public employee is jointly and severally liable for compensation or reimbursement based on the actual property damage and the degree of fault of each individual.

- If the loss, damage, or damage to property is intentionally caused by a public employee, they must fully compensate or restore the entire value of the damage. If the loss, damage, or damage to property is caused by the public employee's negligence, the head of the public service provider decides the amount and method of compensation or reimbursement based on each specific case.

- In cases where a public employee, immediately after causing the damage, voluntarily requests to compensate or restore the damage, and the competent authority of the public service provider agrees in writing on the amount, method, and deadline for compensation or reimbursement, there is no need to establish a Compensation Responsibility Handling Council as prescribed in Article 27 or a Reimbursement Responsibility Handling Council as prescribed in Article 32 of Decree 27/2012/ND-CP.

- If the damage occurs due to force majeure, the concerned public employee is not liable for compensation or reimbursement.

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