If an error or violation of the agreement occurs during the performance of the labor contract, the employee may be required to compensate the company. The following are four instances in which employees may be held accountable for damages.
Breach of confidentiality and technology agreements in Vietnam
When entering into a labor contract, the employer has the right to agree in writing with the employee on the contents relating to the protection of the company’s business secrets or technology, according to Clause 2, Article 21 of the Labor Code 2019.
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 or 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 an employee breaches the agreement, the business has the right to address the situation and seek compensation in accordance with the terms of the agreement.
In this instance, the amount of compensation for damages must also be determined by the fault, the extent of the damage, and the employee’s actual family, personal, and property circumstances.
Unlawfully unilaterally terminate the labor contract in Vietnam
According to Article 35 of the Labor Code 2019, the employee has the right to unilaterally terminate the labor contract but must ensure that there is a statutory reason or have notified the employer on time in advance.
If an employee unilaterally quits his employment, he or she will be judged to have terminated the contract unilaterally.
Thus, the employee will be required to compensate the employer in accordance with Article 40 of the Labor Code 2019:
- Compensation for half a month’s salary according to the labor contract.
- Compensation for an additional 01 salary according to the labor contract corresponding to the unannounced days.
- Refund of training expenses if in the course of working, they are sent to vocational training or vocational training from the employer’s budget.
In addition to having to pay compensation, employees who unilaterally terminate their contracts illegally also face disadvantages when they do not receive severance allowances and unemployment benefits.
Damage to tools, equipment, company property in Vietnam
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.
The employee is compensated in accordance with the law or the company’s labor policies.
Losing company property, including tools and equipment in Vietnam
Pursuant to Clause 2, Article 129 of the Labor Code 2019, if the employee loses tools, equipment, property, or other property assigned by the company or consumes materials beyond the allowable limit, the employee may liable for compensation.
Depending on the case, the level of compensation will be different, even in some cases, the employee does not need to compensate the company.
An employee who loses the employer’s equipment or assets, or consumes the materials beyond the set limits shall pay 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 this is caused by a natural disaster, fire, war, major epidemic, calamity, or another force majeure event that is unforeseeable and insurmountable, all necessary measures and possibilities for avoidance have been taken, the compensation shall not be required.