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The payment of unused leave days when an employee resigns is an important aspect of human resources policies in Vietnam. It directly influences the rights and principles of transparency in labor management. Clearly defined and fair regulations on the payment of unused leave days not only ensure the rights of employees but also help businesses maintain positive and stable labor relations.
Vietnamese law has outlined specific principles regarding the payment of unused leave days when an employee decides to resign. This article will provide detailed information on legal regulations, as well as the procedures and conditions related to leave day payments, emphasizing the importance of maintaining fairness and transparency in human resource management.
According to Section 3, Article 113 of the 2019 Labor Code, in the case of resignation or job loss without utilizing annual leave or exhausting the annual leave days, the employer is required to pay the employee for the unused days.
Therefore, only when resigning or leaving a job within the year without utilizing all allocated leave days up to that point can an employee request payment for the remaining leave days.
In the 2012 Labor Code, this regulation was not as strict, allowing the possibility for employers to decide whether to pay for unused leave days within the year, regardless of whether the employee quits during the year.
This means that if an employee has remaining annual leave days at the end of the year, the company can pay for those unused leave days. However, this provision was previously optional, meaning the decision depended entirely on the company.
Currently, the regulation on payment for unused leave days is limited to cases where employees resign or lose their jobs, a measure taken to protect the health of workers.
Previously, because of the possibility of payment, employees in companies accepting this policy tended to save their leave days, working continuously to be able to receive payment for the unused days at the end of the year. This practice had a significant impact on their health, especially for those working 48 hours a week or more, along with overtime.
To protect the health of employees, the drafting committee of the 2019 Labor Code has restricted the payment of unused leave days to cases where employees resign from the company. However, the regulation does not prohibit companies from going beyond the law and paying for unused leave days for employees in other situations. Therefore, if there is a need to provide benefits to employees, employers can negotiate the payment of unused leave days at the end of the year without limiting it to resignation conditions.
Based on Section 3, Article 67 of the 2019 Labor Code, the salary for the unused leave days or the days not yet taken at the time of resignation or job loss is based on the labor contract for the preceding month.
Clause 1, Article 48 of the 2019 Labor Code stipulates that within 14 working days from the termination of the labor contract, both parties are responsible for fully settling all related financial matters concerning the rights of each party. In some special cases, the payment period can be extended but should not exceed 30 days.
Consequently, during this 14-day period, the employer needs to pay the employee the full amount corresponding to the unused leave days at the time of resignation, calculated up to the date of resignation.
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.
