Hi Lawyer, I signed a labor contract to work for a company within 3 months. In the contract, it is clearly stated that salary will be paid on the 28th of every month. However, when I asked about the pay day, the company announced that I would postpone my salary this month and will pay it next month because I was off close to the date of receiving my salary. So I want to ask the lawyer, “Company defer salary payments for employees in Vietnam” Let’s find out with LSX in the article below.
Legal grounds
- Labor Code 2019
- Decree 12/2022/ND-CP
What is salary according to current law?
Pursuant to Article 90 of the Labor Code 2019 on salary:
Salary
1. Wage is the amount of money that the employer pays the employee under an agreement to perform the job, including the salary according to the job or title, salary allowances and other supplements.
2. The salary according to the job or title must not be lower than the minimum wage.
3. Employers must ensure equal wages, regardless of gender, for employees doing work of equal value.
Thus, the salary is considered the value of labor power, which is the amount that the employer pays the employee when completing the work as agreed.
How does the employer pay wages in accordance with the law?
Pursuant to Article 94 of the 2019 Labor Code, the principles of salary payment are as follows:
“Article 94. Principle of salary payment
1. Employers must pay wages directly, in full and on time to employees. In case the employee cannot receive the salary directly, the employer can pay the salary to the person legally authorized by the employee.
2. The employer must not restrict or interfere with the employee’s right to self-determination of salary expenditure; employees must not be forced to spend their salaries on the purchase of goods or using services of the employer or other units designated by the employer.”
Along with that, Article 95 of the Labor Code 2019 stipulates:
“Article 95. Salary payment
1. Employers pay employees based on the agreed salary, labor productivity and quality of work performance.
2. The salary stated in the labor contract and the salary paid to the employee is in Vietnam Dong. In case the employee is a foreigner in Vietnam, it may be in a foreign currency.
3. Each time a salary is paid, the employer must notify the employee’s salary statement, clearly stating the salary, overtime pay, night-time salary, content and amount deducted (if any).”
Thus, the employer must pay in full, the agreed salary for the employee.
Company defer salary payments for employees in Vietnam
Pursuant to Article 94 of the Labor Code 2019 stipulates the principles of salary payment as follows:
Paying Principles
1. Employers must pay wages directly, in full and on time to employees. In case the employee cannot receive the salary directly, the employer can pay the salary to the person legally authorized by the employee.
2. The employer must not restrict or interfere with the employee’s right to self-determination of salary expenditure; Employees must not be forced to spend their salaries on the purchase of goods or services from the employer or other units designated by the employer.
According to the above provisions, the employer must pay wages in full and on time to the employees.
On the other hand, according to Article 97 of the Labor Code 2019 stipulates:
Pay period
1. Employees who receive hourly, daily and weekly wages shall be paid after hours, days and weeks of work or be paid in a lump sum as agreed by both parties but must be paid in lump sum for not more than 15 days.
2. Employees receiving monthly salary are paid once a month or semi-monthly. The time of salary payment is agreed upon by both parties and must be fixed at a cyclical time.
3. Employees who are paid by product or by contract shall be paid according to the agreement of the two parties; if the work must be done for many months, the monthly salary will be advanced according to the volume of work done in the month.
4. Where due to force majeure the employer has sought all remedies but cannot pay wages on time, it must not be more than 30 days late; If the salary is paid late for 15 days or more, the employer must compensate the employee an amount at least equal to the interest of the late payment amount calculated at the interest rate on mobilizing deposits with a term of 1 month. the bank where the employer opens a salary payment account for employees announced at the time of salary payment.
According to the above principle, the employer must pay wages on time. The payment of wages is delayed only if the employer has a force majeure reason and does not take timely remedial measures.
Therefore, it is against the law that the company postpones the payment of wages for the reason that you leave near the payday.
Is there a penalty for an employer to delay payment of an employee’s wages?
Pursuant to Article 17 of Decree 12/2022/ND-CP stipulating:
Penalties for violations of salary regulations
2. A fine shall be imposed on the employer who commits one of the following acts:
Failure to pay wages on time as prescribed by law; fail to pay or pay insufficiently wages to employees as agreed in the labor contract; not paying or not paying enough overtime wages; not paying or not paying enough wages to work at night; failing to pay or not paying enough wages to stop working for employees as prescribed by law; … failing to pay enough wages to employees for the period of temporary suspension in case the employees are not handled labor discipline according to one of the following levels:
a) A fine ranging from VND 5,000,000 to VND 10,000,000 for violations from 01 to 10 employees;
b) A fine ranging from VND 10,000,000 to VND 20,000,000 for violations of between 11 and 50 employees;
c) A fine ranging from VND 20,000,000 to VND 30,000,000 for violations of between 51 and 100 employees;
d) A fine ranging from VND 30,000,000 to VND 40,000,000 for violations of between 101 and 300 employees;
dd) From VND 40,000,000 to VND 50,000,000 for violations of 301 employees or more.
…
Remedial measures
5. Remedial measures
a) Forcing the employer to pay the full salary plus the interest on the late payment or underpayment to the employee calculated at the highest interest rate on demand deposits of state commercial banks announced at the time of sanctioning for violations specified in Clauses 2 and 3 of this Article;
b) Forcing the employer to pay in full an amount equivalent to the compulsory social insurance, health insurance, and unemployment insurance premium plus the interest of that amount calculated at the interest rate not on the deposit; the highest term announced by the state commercial banks at the time of sanctioning for employees for violations specified in Clause 4 of this Article.
Thus, for the employer to postpone the payment of the employee’s salary, it is also considered as paying the salary on time according to the provisions of the law.
Therefore, depending on the specific level of violation, there will be different penalties but not exceeding 50 million VND and the employer must pay the full salary plus the interest on the late payment amount underpayment to employees is calculated according to the highest demand deposit interest rate announced by state-owned commercial banks at the time of sanctioning for this violation.
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Contact LSX
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Frequently asked questions
Pursuant to the provisions at Points a and b, Clause 3, Article 80 of Decree No. 145/2020/ND-CP, female employees during menstruation have the right to take a break of 30 minutes each day counted in working hours. At the same time, they are still entitled to the full salary according to the labor contract.
According to the provisions of the labor law, if the employee is still working, during that 45 days, the employee is still entitled to apply for leave. However, employees should note the company rules before applying for leave. In addition, in case the employee terminates the labor contract without taking all these leave days, the company will be paid wages for the unpaid days.
Probationary employees or full-time employees are considered employees. Therefore, based on the provisions of Clause 1, Article 3 of the Labor Code 2019: A probationary employee can still take leave to hold a wedding with full salary, provided that you must notify the company. According to regulations, probationary employees can take 3 days off with full salary.
Conclusion: So the above is Company defer salary payments for employees in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
