Delay in salary payment not only affects the daily life of employees but also destroys trust and working spirit. In a developed and fair society, employees’ rights must be respected and protected. So, in case the company is delay in salary payment, what rights do employees have?
What are the legal regulations on salary payment terms?
Salary payment to employees prioritizes the freedom of agreement between employees and the company, but must be consistent with the principle: “Employers must pay salaries directly, fully, and on time to employees.”
The salary payment term corresponding each form of salary payment is specified as follows:
– An employer who receives an hourly, daily or weekly salary shall be paid after every working hour, day or week respectively, or shall receive a sum within not more than 15 days as agreed by both parties.
– An employee who receives a monthly or bi-weekly salary shall be paid after every month or every two weeks respectively. The payment time shall be periodic and agreed upon by both parties.
– An employee who receives a piece rate or a fixed amount shall be paid as agreed by both parties. In case a task cannot be completed within one month, the employee shall receive a monthly advance payment based on the amount of work done in the month.
When is the company’s delay in salary payment acceptable?
In fact, there are many events that can arise that affect business operations as well as cash flow of the enterprise. Labor law allows the company as an employer to extend the salary payment period in cases of force majeure, provided that all remedies have been sought but salaries cannot be paid on time.
It should be noted that the delay in salary payment in this case cannot exceed 30 days.
Are employees entitled to interest on the amount of delay in salary payment by the company?
Pursuant to the provisions of Clause 4, Article 97 of the 2019 Labor Code, the company will have to compensate an interest for delay in payment of salary to employees, for any amount delayed for from 15 days.
The interest is calculated based on the 1-month term deposit interest rate announced by the bank where the employer opens the employee’s salary account at the time of salary payment.
Upon company’s delay in salary payment, can the employee terminate the contract?
The company’s delay in payment of salary or payment of insufficient salary is one of the cases in which the employee has the right to unilaterally terminate the labor contract before term. Note, to terminate the labor contract for this reason, the employee does not need to notify in advance.
Regulations in Clause 2, Article 35 of the 2019 Labor Code are as follows:
“Article 35. The right of an employee to unilaterally terminates the employment contract
…
2. An employee is shall have the right to unilaterally terminate the employment contract without prior notice if he/she:
a) is not assigned to the work or workplace or not provided with the working conditions as agreed in the employment contract, except for the cases specified in Article 29 of this Labor Code;
b) is not paid adequately or on schedule, except for the case specified in Clause 4 Article 97 of this Code.
c) is maltreated, assaulted, physically or verbally insulted by the employer in a manner that affects the employee’s health, dignity or honor; is forced to work against his/her will;
d) is sexually harassed in the workplace;
dd) is pregnant and has to stop working in accordance with Clause 1 Article 138 of this Labor Code.
e) reaches the retirement age specified in Article 169 of this Labor Code, unless otherwise agreed by the parties; or
g) finds that the employer fails to provide truthful information in accordance with Clause 1 Article 16 of this Labor Code in a manner that affects the performance of the employment contract.
>> TERMINATION OF LABOR CONTRACT, EMPLOYEES’ OBLIGATIONS ON NOTIFICATION https://linconlaw.vn/termination-of-labor-contract-employees-obligations-on-notification/
>> SUSPENSION, TERMINATION OF UNEMPLOYMENT ALLOWANCE? https://linconlaw.vn/suspension-termination-of-unemployment-allowance/
Legal basis:
- Labor Code 2019.
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