Cases that employees do not have to compensate the company for damage in Vietnam
In the process of performing the labor contract, if the employee makes a mistake or violates the agreement with the employer, the employee may have to compensate the company. However, there are cases where workers will not have to pay compensation. So, in this article, LSX legal firm would like to inform you: “Cases that employees do not have to compensate the company for damage in Vietnam”
Legal ground
- Labor Code 2019
Employees’ compensation liability
Article 129 of the current Labor Code stipulates the liability of employees to compensate for damage when causing damage to the company as follows:
- An employee who causes damage to equipment or otherwise damages the employer’s assets shall have to pay compensation in accordance with labor laws or the employer’s internal labor regulations. In case the damage caused by an employee is not serious, not deliberate and is worth less than 10 months’ region-based minimum wage announced by the Government, the employee shall have to pay a compensation of not more than his/her 03 months’ salary, which shall be monthly deducted from his/her salary in accordance with Clause 3 Article 102 of this Code.
- An employee who loses the employer’s equipment or assets, or consumes the materials beyond the set limits shall pay a compensation for damage in full or in part at the market price or as stipulated in the internal labor regulations or the responsibility contract (if any). In case caused by a natural disaster, fire, war, major epidemic, calamity, or another force majeure event that is unforeseeable and insurmountable, and all necessary measures and possibilities for avoidance have been taken, the compensation shall not required.
Cases that employees do not have to compensate the company for damage in Vietnam
- The two parties have an agreement that the employee does not have to compensate the company.
- It happened because of a force majeure event.
- Due to the company’s violation, the employee, unfortunately, caused damage.
- Cases prescribed by law or company rules.
Cases that employees have to compensate the company for damage in Vietnam
Violation of agreements on business and technology secrets
According to Clause 2, Article 21 of the Labor Code 2019, if the employees’ job directly related to the business secret, or technological know-how as prescribed by law, the employer has the right to sign a written agreement with the employee on the content and duration of the protection of the business secret, technology know-how, and on the benefit and the compensation obligation in case of violation by the employee.
Pursuant to Clause 2, Article 4 of Circular 10/2020/TT-BLDTBXH, an agreement on the protection of business secrets and technology may include the following main contents:
- List of business secrets and technology secrets;
- Scope of use of business secrets or technology secrets;
- The time limit for protection of business secrets and technology secrets;
- Methods of protecting business secrets and technology secrets;
- Rights, obligations, and responsibilities of employees and employers during the time limit for protecting business secrets and technology secrets;
- Handling violations of agreements on the protection of business secrets and technology secrets.
If the employee violates the agreement, the company has the right to handle the violation and demand compensation according to the agreement.
The level of compensation, in this case, must also based on the fault, the extent of the damage, and the actual conditions of family, personal, and property circumstances of the employee.
Illegal unilaterally terminate the labor contract
According to Article 35 of the Labor Code 2019, an employee shall have the right to unilaterally terminate the employment contract, provided that he or she notices the employer in advance:
- Firstly, at least 45 days in case of an indefinite-term employment contract.
- Secondly, at least 30 days in case of an employment contract with a fixed term of 12 – 36 months.
- Thirdly, at least 03 working days in case of an employment contract with a fixed term of under 12 months.
In case of leaving without any notification, the employee will be considered as unilaterally terminating the contract illegally.
At that time, the employee will have to compensate the employer according to Article 40 of the Labor Code 2019 as follows:
1. Not receiving the severance allowance.
2. Pay the employer a compensation that worth his/her half a month’s salary plus (+) an amount equal to his/her salary for the remaining notice period from the termination date.
3. The employee shall reimburse the employer for the training costs in accordance with Article 62 of this Code.
Damaging tools, equipment, property of the company
According to Clause 1, Article 129 of the Labor Code 2019, an employee who damages tools and equipment or commits other acts causing damage to the company’s property will have to pay compensation as follows:
“An employee who causes damage to equipment or otherwise damages the employer’s assets shall have to pay compensation in accordance with labor laws or the employer’s internal labor regulations.
In case the damage caused by an employee is not serious, not deliberate and is worth less than 10 months’ region-based minimum wage announced by the Government, the employee shall have to pay a compensation of not more than his/her 03 months’ salary, which shall be monthly deducted from his/her salary in accordance with Clause 3 Article 102 of this Code.”
Article 102. Salary deductions
An employer shall have the right to deduct from an employee’s salary only for the compensation for the damage to the employer’s equipment and assets in accordance with Article 129 of this Labor Code.
The employee has the right to be aware of the reasons for the deduction.
Any monthly deduction shall not exceed 30% of the net monthly salary of the employee, after the payment of compulsory social insurance, health insurance, unemployment insurance premiums, and personal income tax.
Losing tools, equipment, property of the company
Pursuant to Clause 2, Article 129 of the Labor Code 2019,an employee who loses the employer’s equipment or assets, or consumes the materials beyond the set limits shall pay a compensation for damage in full or in part at the market price or as stipulated in the internal labor regulations or the responsibility contract (if any).
The level of compensation will vary from case to case. In certain cases, the employee does not need to compensate the company.
In case the damage caused by a natural disaster, fire, war, major epidemic, calamity, or another force majeure event which is unforeseeable and insurmountable, and all necessary measures and possibilities for avoidance have been taken, the compensation shall not required.
Legal service of LSX Legal Firm
LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:
- Legal advice related to new regulations;
- Representing in drafting and editing documents;
- We commit the papers to be valid, and legal for use in all cases;
- Represent to submit documents, receive results, and hand them over to customers.
With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.
Furthermore, using our service, you do not need to do the paperwork yourself; We guarantee to help you prepare documents effectively and legally.
Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.
After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.
Contact LSX
Finally, we hope this article is useful for you to answer the question about “Cases that employees do not have to compensate the company for damage in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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Related questions
Consideration and decision on the level of compensation for damage shall be based on the nature of the offence, the actual extent of damage, the situation of the offender or the offender’s family, and financial capacity of the employee.
If the employee who is disciplined, suspended from work, or required to pay compensation is not satisfied with the decision, he/she has the right to file a complaint to the employer or a competent authority as prescribed by law, or request settlement of the labor dispute in accordance with the procedures stipulated by law.
Harming the employee’s health, life, honor or dignity.
Applying monetary fines or deducting the employee’s salary wage.
Imposing a disciplinary measure against an employee for a violation which is not stipulated in the internal labor regulations or employment contract or labor laws.
Conclusion: So the above is Cases that employees do not have to compensate the company for damage in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
