What are the fines imposed on enterprises in Vietnam for delayed payment of salaries and Tet bonuses?

What are the fines imposed on enterprises in Vietnam for delayed payment of salaries and Tet bonuses?​ (Image from the internet)

Regarding this issue, LawNet explains as follows:

1. What are the fines imposed on enterprises in Vietnam for delayed payment of salaries and Tet bonuses?

According to Clause 1, Article 94 of the Labor Code 2019, employers are required to pay salaries directly, fully, and on time to employees. In cases where the employee cannot receive the salaries directly, the employer can pay the employee's legally authorized representative.

Additionally, Article 97 of the Labor Code 2019 clearly stipulates the salary payment periods for employees as follows:

- Employees paid by the hour, day, or week shall be paid after working hours, days, or weeks or be paid in a lump sum as agreed by both parties but no longer than 15 days in a lump sum.

- Employees paid by the month shall be paid once a month or half a month. The payment time is as agreed by both parties and must be set at a periodic time.

- Employees paid by product or contract shall be paid as per the agreement between both parties; if the job takes several months to complete, monthly advance payments shall be made based on the volume of work completed within the month.

- In cases where there are force majeure reasons and the employer has tried all remedial measures but still cannot pay salaries on time, the delay should not exceed 30 days; if salaries are delayed for 15 days or more, the employer must compensate the employee with an amount at least equal to the interest of the delayed payment calculated based on the one-month term deposit interest rate announced by the bank where the employer opens a salary payment account for the employee at the time of salary payment.

Thus, according to the above regulations, enterprises must pay salaries fully and on time to employees.

However, enterprises may not necessarily pay salaries on time when there are force majeure reasons, but the delay should not exceed 30 days.

As for Tet bonuses, Article 104 of the Labor Code 2019 only stipulates that bonuses can be in the form of money or assets or other forms but doesn't specify the payment time.

Therefore, the bonus payment shall be executed as agreed upon by both parties or according to the internal regulations of the enterprise. The enterprise is obligated to fulfill the agreed contents and the regulations it implements.

2. What are the fines imposed on enterprises in Vietnam for delayed payment of salaries and Tet bonuses?

In case of delayed salary payment to employees

Based on Clause 2, Article 17 of Decree 12/2022/ND-CP, a fine is imposed on employers who delay salary payments according to the law as follows:

- From 5,000,000 VND to 10,000,000 VND for violations involving 01 to 10 employees;

- From 10,000,000 VND to 20,000,000 VND for violations involving 11 to 50 employees;

- From 20,000,000 VND to 30,000,000 VND for violations involving 51 to 100 employees;

- From 30,000,000 VND to 40,000,000 VND for violations involving 101 to 300 employees;

- From 40,000,000 VND to 50,000,000 VND for violations involving 301 or more employees.

Additionally, employers are required to pay the full due salaries plus an interest amount for the delayed salaries. The interest on late payment is calculated based on the highest non-term deposit interest rate of state commercial banks at the time of penalty.

Note: according to Clause 1, Article 6 of Decree 12/2022/ND-CP, the fines stated above are for individuals. The fines for organizations are 02 times the fines for individuals.

In case of delayed Tet bonus payment to employees

The Labor Code 2019 and Decree 12/2022/ND-CP do not stipulate penalties for delayed Tet bonuses. Hence, there are no sanctions yet to penalize violating enterprises.

At this time, to claim their rightful benefits, employees can file complaints with the enterprise's leadership demanding the bonus payment. If unresolved, they can escalate the complaint to the Chief Inspector of the Department of Labor, War Invalids, and Social Affairs where the enterprise is headquartered to demand the bonus (according to Article 15 of Decree 24/2018/ND-CP).

Nguyen Ngoc Que Anh

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