what do employees need to do when being held or refused to pay wages by the company in Vietnam, being held or refused to pay wages by the company in Vietnam, refused to pay wages by the company in Vietnam, employees need to do when being held or refused to pay wages by the company,

What do employees need to do when being held or refused to pay wages by the company in Vietnam?

According to the provisions of the Labor Code 2019, employees receiving monthly salaries are paid once a month or semi-monthly. However, in Vietnam, there are many cases where enterprises pay late, keep, or even refuse to pay wages to employees. So, in such cases, what should employees do to protect their rights?

Article 97 of the Labor Code 2019 clearly states that the issue of employees’ wages must be agreed upon in detail and clearly defined between the two contracting parties, the employee and the employer.

If the employee receives an hourly, daily, or weekly salary, he/she shall be paid after the hour, day, or week of work or shall be paid in a lump sum as agreed by both parties but must be paid in a lump sum for not more than 15 days.

If the employee receives a monthly salary, he/she shall be paid once a month or semi-monthly. The time of salary payment is agreed upon by both parties and must be fixed at a cyclical time.

For the recently popular form of product-based and contract-based salary payment, the salary will be paid according to the agreement of the two parties. If the work has to be done for many months, the monthly salary will be paid in advance according to the volume of work done in the month.

In case of force majeure such as natural disaster, fire, etc., the employer has tried all remedies but cannot pay the employee’s salary on time, the payment must not be more than 30 days late.

If the salary is paid late for 15 days or more, the employer must compensate the employee an amount at least equal to the interest of the late payment amount calculated at the interest rate on mobilizing deposits with a term of 1 month where the employer opens a salary payment account for employees announced at the time of salary payment.

Protecting the rights of workers

If the employee keeps or refuses to pay the employee’s salary on time without explanation, specific and detailed notice to the employee, and the employee’s consent, it means that the enterprise is violating the provisions of the Labor Code and the labor contract signed with the employee.

According to the provisions of Clause 2, Article 16 of Decree No. 28/2020/ND-CP, the employer who fails to pay wages on time to the employee will be fined from 5 to 50 million VND depending on the severity of the violations, corresponding to violations from 1 employee to 301 employees or more.

In addition to the fine, the enterprise is also forced to pay the full salary plus the interest of the late payment to the employee calculated at the highest interest rate on demand deposits announced by the State commercial banks at the time of sanctioning for violations of regulations.

The bank interest may not be significant, but it is necessary to ensure that the employer pays the penalty in accordance with the law, and ensures the rights and benefits of the employee.

In addition, another common mistake on the part of enterprises is to perform late payment, underpayment, or deduction of wages instead of a form of labor discipline.

For all cases leading to late payment of wages to employees without the employees’ consent, infringing on their rights, the employees should first file a complaint with the company’s board of directors.

If the company does not resolve the problem or resolve it insufficiently, the employee can complain to the Department of Labor, War Invalids, and Social Affairs where the employer is headquartered, or initiate a lawsuit at the Court where the company is located to protect the rights of 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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