In what cases are businesses allowed to delay salary payments?-Văn Phòng Luật Sư Trương Quyền

Article 94 of the 2019 Labor Code regulates the principles of salary payment. This Article stipulates the principles of salary payment as follows:

1. In what cases are businesses allowed to delay salary payments?

1.1. For cases in which a labor contract is being implemented:

Article 94 of the 2019 Labor Code regulates the principles of salary payment. This Article stipulates the principles of salary payment as follows:

– Employers will have to pay salaries directly, fully and on time to their employees. In cases where the employee cannot receive salary directly, the employer will be able to pay salary to the person legally authorized by the employee.

– Employers may not restrict or interfere with employees' rights to decide on salary spending; Employees must not be forced to spend their salaries on purchasing goods or using services from the employer or other units designated by the employer.

In addition, Article 97 of the 2019 Labor Code regulates salary payment terms. This Article stipulates salary payment terms as follows:

– Employees who are paid by the hour, day, or week will be paid after the hour, day, or week of work or will be paid in lump sum as agreed upon by both parties but must not exceed 15 days and must be paid in lump sum.

– Employees who receive a monthly salary are paid once a month or once every half a month. The time of salary payment will be agreed upon by both parties and must be set at a cyclical time.

– Employees who receive wages based on products or pieces of work are paid according to the agreement between the two parties; If the work must be done for many months, monthly salary will be advanced according to the amount of work done during the month.

– In case due to force majeure the employer has tried all remedies but cannot pay wages on time, it will not be delayed more than 30 days; If salary is paid late for 15 days or more, the employer must compensate the employee with an amount at least equal to the interest on the late payment calculated according to the term deposit interest rate. 01 month is announced by the bank where the employer opens the salary account for the employee at the time of salary payment.

Thus, during the implementation of the labor contract, the employer will have to pay its employees in full and on time. However, the law also stipulates that the employer is still not allowed to pay the employee on time (slowly paying the employee) for a certain period of time, that is in the case of due reasons. Due to force majeure, the employer tried every remedy but could not pay the employee on time. The delay in paying wages to employees must not exceed 30 days, and the employer must compensate the employee with an amount at least equal to the interest on the late payment calculated at the deposit interest rate. Deposits with a term of 01 month are issued by the bank where the employer opens an account to pay the employee's salary if the employer delays paying the employee's salary for 15 days or more, that is, if the employer delays paying the employee's salary for 15 days or more. Employers who delay paying wages to employees for less than 14 days do not have to pay compensation, but if they delay paying wages to employees for less than 14 days, they will have to pay compensation.

1.2. In case of termination of labor contract:

Article 48 of the 2019 Labor Code regulates responsibilities when terminating a labor contract. This Article stipulates that within 14 working days from the date of termination of the labor contract, both parties (that is, (employee and employee) must be responsible for paying all amounts related to the rights of each party, except in the following cases, which may be extended but shall not exceed 30 days. :

– The employer is not an individual who terminates operations;

– The employer changes structure, technology or for economic reasons;

– Split, split, merge, merge; selling, leasing, converting to business type; transfer of ownership and rights to use assets of enterprises and cooperatives;

– Due to natural disasters, fires, enemy attacks or dangerous epidemics.

Thus, in case of termination of the labor contract, the employer must pay the salary and other amounts to which the employee is entitled upon termination of employment within 14 working days from the date of termination of the labor contract. . In the following cases, the employer can still extend the payment time but not to exceed 30 days:

– The employer is not an individual who terminates operations;

– The employer changes structure, technology or for economic reasons;

– Split, split, merge, merge; selling, leasing, converting to business type; transfer of ownership and rights to use assets of enterprises and cooperatives;

– Due to natural disasters, fires, enemy attacks or dangerous epidemics.

2. Penalties when businesses are late in paying salaries:

Pursuant to Clause 2, Article 17 of Decree 12/2022/ND-CP on sanctioning administrative violations in the field of labor and social insurance, Vietnamese employees abroad under contracts that stipulate violations of regulations on wages, Article This regulation stipulates fines for employers who commit one of the following acts:

– Failure to pay salaries on time according to the provisions of law;

– Not paying or not paying enough wages to employees as agreed in the labor contract;

– Not paying or not paying enough overtime wages;

– Not paying or not paying enough wages for working at night;

– Paying or not paying enough cessation wages to employees according to the provisions of law;

– Restrict or interfere with the employee's right to decide on salary spending;

– Forcing employees to spend their salaries on purchasing goods or using services of themselves (the employer) or of another unit designated by the employer;

– Deductions from employees' salaries not in accordance with the law;

– Failure to pay or underpay the prescribed salary to employees when temporarily transferring employees to a job different from the labor contract or during a strike;

– Failure to pay or insufficient payment of the employee's salary for days without annual leave or days for which annual leave has not been taken when the employee quits or loses his or her job;

– Failure to advance or not advance enough salary for employees during the period of temporary suspension from work according to the provisions of law;

– Failure to pay the employee the full salary for the period of temporary suspension in case the employee is not subject to labor discipline.

Employers are fined at one of the following levels:

– From 5,000,000 VND to 10,000,000 VND for violations from 01 person to 10 employees;

– From 10,000,000 VND to 20,000,000 VND for violations from 11 to 50 employees;

– From 20,000,000 VND to 30,000,000 VND for violations from 51 to 100 employees;

– From 30,000,000 VND to 40,000,000 VND for violations from 101 to 300 employees;

– From 40,000,000 VND to 50,000,000 VND for violations of 301 or more employees.

Thus, if an enterprise is late in paying salaries to employees, depending on the number of employees who are late in paying salaries, the enterprise will be fined with different fines, the penalty level when the enterprise is late in paying salaries is the lowest. is 5,000,000 VND and the highest is 50,000,000 VND.