Is it illegal for an enterprise to pay wages to employees without a detailed list, the right of being notified of a detailed list for each salary receipt, a detailed list for each salary receipt, What if the employees can't directly receive the salaries

Is it illegal for an enterprise to pay wages to employees without a detailed list in Vietnam?

From January 1, 2021, employees in Vietnam have more benefits under the provisions of the Vietnam Labor Code 2019 than before. In particular, employees now have the right of being notified of a detailed list for each salary receipt.

Specifically, according to the provisions of Article 95 of the Labor Code 2019, the employer pays the employee based on the agreed salary, labor productivity, and quality of work performance.

Each time a salary is paid, the employer must attach a detailed list for each salary receipt, clearly stating the salary, overtime salary, night-time salary, the content, and the amount of salary deducted (if any) to the employee.

This change in the Labor Code 2019 was a significant improvement compared to the Labor Code 2012. Beforehand, as stated in the Labor Code 2012, the employer doesn’t have the obligation to notify the detailed list for each salary receipt to the employee, clearly stating the salary, overtime salary, night-time salary, the content, and the amount of salary deducted (if any) to the employee. Accordingly, this provision is not mandatory so only a few employers send the detailed list for each salary receipt to employees.

Is it illegal for an enterprise to pay wages to employees without a detailed list?

Now, the employees have the right to receive a detailed list of each salary receipt for every month they work at the company. Specifically, from the salary period of January 2021, when paying salaries to employees, enterprises must attach a detailed list to employees, clearly stating the salary, overtime salary, night-time salary, the content, and the amount of salary deducted (if any) to the employee. With this mandatory regulation, employees will know exactly how their salaries are paid and deducted which is the right of each employee.

What if the employees can’t directly receive the salaries?

In addition to the payment of wages to employees, which must be accompanied by a detailed list, Clause 1, Article 94 of the Labor Code 2019 stipulates another additional provision that will greatly enhance and protect employee’s rights when receiving wages compared to the provisions of the Labor Code 2012. 

From now on, employers must pay wages directly, in full, and on time to employees. In case the employee cannot receive the salary directly, the employer may pay the salary to the entities legally authorized by the employee.

Accordingly, in case the employee cannot receive the salary directly, the enterprise can pay the salary to the entities legally authorized by the employee if there is not any additional contract in this matter between the employees and the employers.

This provision will apply to employees who receive their salary in cash for reasons such as illness, long-distance business trips, or some other obstacle that forbid/hinder them from coming to the company to receive wages directly. However, it should also be noted that this is not a mandatory regulation so employers have the right to refuse to pay wages to the entities legally authorized by the employees.

ASL LAW is the top-tier Vietnam law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.

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