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Causing damage to businesses, how should workers compensate in Vietnam?

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How should employees compensate for damage to the enterprise? This is not just a question which asked by many employers; even workers care. Because, when any damage occurs, the business is the first to bear the consequences; at the same time significantly affects the workers causing damage; In this case, there will be a liability between the parties to compensate for the damage. So, how are worker’ compensation responsibilities set? Let’s find out this issue with Lawyer X through the article below.

Labor Code 2019

Decree 145/2020/ND-CP

Lawson compensation for property damage

Liability to compensate for property damage is the responsibility to compensate for actual material loss; shall charge to money caused by the party in breach of the obligation; including loss of property, costs to prevent; Limit the damage, the real income that lost, reduced.

Civil law stipulates two types of liability for damages: liability for damage caused by a breach of contract and liability for compensation for non-contractual damage.

Compensation for damage must fully satisfy the following conditions: there is damage; there is an illegal act, there is a cause-and-effect relationship between the illegal act and the damage that has occurred; the person causing the damage is at fault.

The same is true in labor relations; When causing damage to the enterprise, the employee obliged to compensate. However, the employee only has to compensate the enterprise; under certain circumstances as well as to a certain extent; Those are regulations put in place to maximize the rights of employees.

In cases that cause damage to enterprises, workers must compensate

Specifically, these cases are recorded in article 129 of the Labor Code 2019; regulations on the liability of workers to compensate for damage when:

– Workers damaged tools; equipment or engage in other conduct that damages the employer’s property

– Besides, workers lose tools; equipment, property of the employer, or other property assigned by the employer, or consume materials beyond the allowable limit

In addition to the cases mentioned above, the employee is not responsible for compensation; in other cases when required by the employer. To determine the worker’s liability for material compensation, the enterprise must prove the act, violation, damage, the cause-and-effect relationship of the violation for the damage; as well as the employee’s fault when causing damage.

How much compensation should the employee have to pay for damage to the business?

The level of compensation for damage to employees is specified; Article 129 of the Labor Code 2019 is as follows:

First: Compensation up to 3 months’ salary

– When causing non-serious damage, due to negligence causing damage to tools and equipment, the actual damage value does not exceed 10 months of the regional minimum wage.

– The compensation made by deduction of not more than 30% of the monthly salary after the mandatory deductions and payments.

Second: Compensation for all damages or according to labor regulations

– Inadvertently damage tools and equipment, causing serious consequences or with the actual damage value of 10 months or more of the regional minimum wage;

– Losing tools, equipment, and property of the employer;

– Consuming materials beyond the allowable limit of the employer.

Third: Compensation as agreed in the contract

When there is a contract of liability between the employer and the employee (usually the employer gives the employee a relatively large asset).

Fourthly: No compensation

When force majeure events such as natural disasters, fires, enemy sabotage, epidemics, disasters, objective events cannot be foreseen and cannot be remedied.

Related article:

Rights of employees when unilaterally terminating the labor contract

Regulations for foreign workers working in Vietnam

Related question

What is the statute of limitations for handling an enterprise’s damage claim?

 The statute of limitations for handling compensation is 06 months from the date the employee damages, loses tools, equipment, or loses the employer’s property or other property caused by the employer. the employee assigns or commits other acts that cause damage to the employer’s property or consume materials beyond the allowable limit.

Can businesses be required to handle damages for pregnant women?

In case the employee causing damage is a pregnant woman, the enterprise is not required to handle specific compensation according to the provisions of Clause 2, Article 72 of Decree 145/2020.

In the case of many people causing damage, how to handle it?

For more than one person causes damage together, those persons must jointly compensate the damage sufferer. The indemnification liability of each person who jointly causes damage is determined in proportion to the degree of fault of each person; if the extent of the fault cannot be determined, they must compensate for the damage in equal parts.

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