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The new regulations about salary and bonus according to the Labor Code 2019

29/09/2020


 

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1. Employees are not allowed to force employees to use their salaries to buy their goods or services or other units

Clause 2, Article 94 stipulates " Employers must not restrict or interfere their employees’ spending of their salaries; must not force their employees to spend their salaries on goods or services of the employers or any particular providers decided by the employers. "

Employees cannot:

- Restricting or interfering with the employee's right to self-determination to spend salary;

- Forcing employees to spend salaries on buying goods and using services of the employer or any particular providers decided by the employers.

2. The employer must notify the salary payment list to the employee for each salary payment

Article 95 stipulates:

  • The employer shall pay the employee on the basis of the agreed salary, productivity and work quality.
  • The salary written in the employment contract and the salary paid in reality shall be VND, unless the employee is a foreigner working in Vietnam.
  • Every time salary is paid, the employer shall provide the employee with a note specifying the salary, overtime pay, nightshift pay and deductions (if any).

3. Employers must bear the cost of opening accounts for employees if they pay wages through banks (Article 96)

  • Clause 2, Article 96 stipulates " Salary shall be paid in cash or transferred to the employee’s personal bank account. In case of bank transfer, the employer shall pay the costs of account opening and transfer. "

Currently, the fees related to opening and maintaining accounts are agreed upon by the employer and the employee.

 

4. In case the employee is allowed to leave his own job and enjoy the full salary

According to the Labor Code 2019, an employee is entitled to take a fully paid personal leave in the following circumstances, at long at is notified to the employer in advance:

a) Marriage: 03 days;

b) Marriage of his/her biological child or adopted child: 01 day;

c) Death of his/her biological or adoptive parent; death of his/her spouse’s biological or adoptive parent; death of spouse, biological or adopted child: 03 days.

Thus, in comparison with the current regulations, the Labor Code 2019 adds the case of adoptive father and adoptive mother; If the adoptive father or adoptive mother dies, the employee is entitled to fully paid three days off

5. Employees are entitled to 2 days off on the occasion of the National Day.

Employees shall be entitled to fully paid days off on the two days off on the occasion of the National Day.

Since 2021, employees have been entitled to fully paid days off  on the occasion of the National Day.

(Currently, employees are only allowed a fully paid day off on September 2rd) under one of the following two options by the decision of the Prime Minister.

 

6. Employees can quit their jobs immediately without notice if they are not paid on time

Specifically, according to Point b, Clause 2, Article 35 of the Labor Code 2019, an employee shall have the right to unilaterally terminate the employment contract without prior notice if he/she is not paid adequately or on schedule, except for the case specified in Clause 4 Article 97 of this Code, except for the case specified in Clause 4 Article 97 of the Labor Code 2019 (currently 3 days notice).

7. Female employees who work hard during pregnancy can be reduce the working hours by 01 hour per day without reducing her salary, rights or benefit.

Clause 2, Article 137 of the Labor Code 2019 stipulates whenever an employer is informed of the pregnancy of an female employee who is doing a laborious, toxic or dangerous work, a highly laborious, toxic or dangerous work or any work that might negatively affect her maternity, the employer shall assign her to a less laborious or safer work, or reduce the working hours by 01 hour per day without reducing her salary, rights or benefits until her child reaches 12 months of age).

 

(Currently, female employees who work from the 7th month of pregnancy can be transferred to lighter jobs or reduce the working hours by 01 hour per day while being still entitled to fully paid the period.