At some exporting and manufacturing companies in Vietnam, the employer might make an agreement with the employee not to use up their annual leave. Instead, that number of annual leave days will be used on days when the company has collective events such as team building, year-end meetings, etc., which are collective holidays for all employees.
The fact that the company has days off for all employees is welcoming, helping to create a spirit of solidarity and attachment among employees and gratitude for the company to be able to continue to contribute.
However, collective leave for events such as year-end team building is not mandatory and the employee’s annual leave cannot be used for that purpose.
In fact, even though employees refuse to go to these collective events for objective reasons such as being unable to travel long distances (due to having small children who cannot leave their mothers, etc.), the employees will still be cut off from their annual leave.
The company’s policy not to use this forced annual leave is against the Labor Code of Vietnam but is still applied by many Vietnamese companies.
Settlement of regimes for Vietnamese employees who are forced by the company not to use annual leave
According to the provisions of Clause 1, Article 113 of the Labor Code 2019 No. 45/2019/QH14 (“Labor Code 2019”), an employee who works under normal conditions for full 12 months for an employer shall have 12 annual leave of full salary.
Specifically, minor employees, disabled employees, and people doing heavy, hazardous and dangerous jobs will be entitled to 14 annual leave. Employees who do extremely heavy, hazardous and dangerous occupations and jobs will be entitled to 16 annual leave.
The fact that the employee is not allowed to use annual leave according to the methods imposed by the employer will mean that the employee is working on their paid leave day.
Point c, Clause 1, Article 98 of the Labor Code 2019 stipulates that overtime employees are paid according to the unit salary or actual salary paid according to the work they are doing as follows:
“c) During public holidays, paid leave, at least 300%, not including the daily salary during the public holidays or paid leave for employees receiving daily salaries.”
Thereby, in addition to 100% of the daily salary for the employer who receives the salary according to the working day regime, the employee who has their annual leave day taken will also be compensated at least 300% of the salary according to the working day, a total of 400% of daily salary for each day the employer takes advantage of annual leave.
For example, if employees are forced by the company to go to team building at the end of the year for 2 days on a normal working day, they will receive 2 days of 400% salary.
In particular, if it is calculated that employees must work at night according to the daytime working regime, they will receive at least 20% more salary, or 120% of salary per working day, totaling 420%.