Sharing of expertise
Question 72: May Employers deduct Employees’ salaries on the grounds of their late work?
Pursuant to labour law[1], Employers are prohibited from applying the form of fines, salary cut instead of LD action. Accordingly, the deduction of salaries due to going to work late is a violation of labour law. In order to handle this case in accordance with the labour law, Employers may stipulate the conduct of going…
Question 71: How are night work salary and night overtime salary calculated?
Working at night is the normal working hours provided by labour law, the CLA or ILRs and this period falls within the time frame from 22:00 to 6:00 of the following day[1]. In fact, manufacturing enterprises often specify working on shifts and Employees who work on the third shift from 22:00 to 6:00 of the…
Question 70: Can life support and meal payments be considered salary allowances to compensate for the element of living conditions?
As prescribed by labour law, salary allowances are construed as[1]: The monetary amounts to compensate for the elements of working condition, job with complicated nature, living condition, labour force attraction which have not been counted into the contract salary or have not been considered satisfactory. These include: The amount to compensate for working conditions: applicable…
Question 69: How to calculate the monthly salary in the case where there is an agreement on unpaid leave and there are 27 working days in the month?
Time-based salaries will be paid according to the actual number of months, weeks, days or hours that Employees have spent doing their work[1]. If Employees receive monthly salaries, salaries will be paid for a working month based on LCs[2]. Of note, monthly salaries do not depend on the normal number of working days in a…
Question 68: When Employees sign LCs with workplaces in many provinces and with different area minimum wages, will which area minimum wage related to any workplace serve as a basis for determining the salary paid by Employers under LCs at a higher rate than the area minimum wage announced by the Government?
Pursuant to labour law, Employers are obliged to ensure that the salary paid to Employees must not be lower than the area minimum wage prescribed by the Government. The area minimum wage is differently applied in each area based on where Employees work. Specifically, Article 4.1 of Decree 141/2017/NĐ-CP determines the principle of applying the…
Question 67: In case of recruiting Employees who have undergone vocational training to perform jobs that do not require vocational training, is the minimum salary paid to such Employees is required to be 7% higher than the area minimum wage?
Pursuant to labour law, the lowest salary of a job or title requiring traineeship (including enterprise-trained Employees) must be at least 7% higher than the area minimum wage as regulated by the Government[1]. In particular, the Employees who have undergone vocational training or education include[2]: Persons who have been granted a vocational certificate, vocational diploma,…
Question 66: What is the salary to which the Employer must refer to pay for the annual leave days that Employees have not taken?
As prescribed by labour law, for Employees who have worked for full 6 months and over, the salary serving as the basis to pay for the annual leave days that Employees have not taken is the average contract salary of the 6 preceding consecutive months prior to calculation of the payment for the Employees’ unused…
Question 65: Under the labour law, are Employers obliged to annually adjust the salary scales applied to Employees? What is the minimum gap between two successive pay grades?
Annual adjustment to increase the salary scale applied to Employees Pursuant to the labour law[1], Employers are required to periodically review to amend and supplement wage scales and payrolls in line with: (i) actual conditions for technological innovation; (ii) production and labour organisation; (iii) salary levels in the labour market; and (iv) ensuring compliance with…
Question 64: May Employers set the ceiling and provide for the same ceiling for different jobs in the salary scale and payroll?
The labour law on salaries only stipulates the minimum wage level in the salary scale and payroll, namely the lowest salary of the job or the simplest title under normal working conditions must not be lower than the area minimum wage prescribed by the Government; and the lowest salary of a job or title requiring…
Question 63: May Employers simultaneously refer to the salary scale and table and the system of Key Performance Indicators (KPIs) to evaluate the Employees’ task completion level and the corresponding salary level?
The Key Performance Indicators (KPIs) serve as a condition for evaluating the Employees’ task completion level. In addition, there are no regulations allowing Employers to combine the salary scale and table with the KPIs to evaluate the Employees’ task completion level and to raise their salaries; also, there is not any guideline on what contents…