Modifications to the workers' income to be applied from 2021

09/10/2020 09:43 AM


Salaries and bonuses, which have been defined in a separate Chapter in the Labor Code 2019, are always of the top concerns of the employees.

The Labor Code 2019 will come into force from January 1, 2021, stipulating numerous new points about salaries and bonuses that employees need to know to ensure their legitimate rights and interests in the labor relationship with the employer, specifically:

Additional fully paid annual leave

According to the Labor Code 2019, from 2021: Any employee who has been working for an employer for 12 months is entitled to fully-paid annual leave, which is stipulated in his/her employment contract as follows: 12 working days for employees who work in normal working conditions; 14 working days for employees that are minors, the disabled, employees who do laborious, toxic or dangerous works; 16 working days for employees who do highly laborious, toxic or dangerous works.

Modifications made to the salaries and bonuses of the employees from 2021. Illustrative image (Source: Internet).

Employees shall be entitled to fully paid days off on the following public holidays:

Gregorian Calendar New Year Holiday: 01 day (the 1st of January of the Gregorian calendar); Lunar New Year Holidays: 05 days; Victory Day: 01 day (the 30th of April of the Gregorian calendar); International Labor Day: 01 day (the 1st of May of the Gregorian calendar); National Day: 02 days (the 2nd of September of the Gregorian calendar and the previous or next day); Hung Kings Commemoration Day: 01 day (the 10th of the third month of the Lunar calendar). The total number of public holidays is 11 days, an increase of 1 day compared to the previous Law.

More cases of fully paid personal leave

Specifically, according to the Labor Code 2019, an employee is entitled to take a fully paid personal leave in the following circumstances, as long as notified to the employer in advance:

- Marriage: 03 days;

- Marriage of his/her biological child or adopted child: 01 day;

- Death of his/her biological or adoptive parent; death of his/her spouse’s biological or adoptive parent; death of spouse, biological or adopted child: 03 days.

Thus, compared to the current regulations, the Labor Code 2019 adds the case in which if his/her spouse’s biological or adoptive parent dies, the employee will be entitled to take a fully paid personal leave for 03 days.

At the same time, it is more clearly prescribed that if his/her ‘biological child’ or ‘adopted child’ gets married, the employee will be entitled to 01 day off (current regulation; marriage of his/her ‘child’: 01 day off); If his/her ‘biological’ or ‘adopted’ child dies, he/she will be entitled to 03 days off (current regulation; death of his/her ‘child’: 03 days off).

The right of an employee to take leave without prior notice if not paid on schedule

Specifically, according to Point b, Clause 2, Article 35 of the Labor Code 2019, an employee is shall have the right to unilaterally terminate the employment contract without prior notice if he/she is not paid adequately or on schedule, except for the case specified in Clause 4 Article 97 of this Code (Current regulation: Notice of 03 days in advance is required).

To reduce the working hours by 01 hour per day for pregnant female employees in charge of laborious, toxic or dangerous work

Clause 2, Article 137 of the Labor Code 2019 stipulates: Whenever an employer is informed of the pregnancy of an female employee who is doing a laborious, toxic or dangerous work, a highly laborious, toxic or dangerous work or any work that might negatively affect her maternity, the employer shall assign her to a less laborious or safer work, or reduce the working hours by 01 hour per day without reducing her salary, rights or benefits until her child reaches 12 months of age.

Employees will get bonuses in the forms of money, property or in other forms

Pursuant to the provisions of Article 104 of the Labor Code 2019, a bonus means an amount of money, a piece of property or item that is provided by an employer for his/her employees on the basis of the business performance or the employees’ performance. (Current Code: Bonuses can only be money).

A bonus regulation shall be decided and publicly announced at the workplace by the employer after consultation with the representative organization of employees (if any).

Employers must not force the employees to spend their salaries on goods or services of the employers or any particular providers

Specifically, according to the provisions of Clause 2, Article 94 of the Labor Code 2019:

- Employers must not restrict or interfere their employees’ spending of their salaries;

- Employers must not force their employees to spend their salaries on goods or services of the employers or any particular providers decided by the employers.

The interest for a compensation on the salary paid behind schedule

Pursuant to Clause 4, Article 97 of the Labor Code 2019, in case of a force majeure event in which the employer is unable to pay the employee on schedule after all remedial measures have been implemented, the salary shall be paid within 30 days. In case a salary is paid at least 15 days behind schedule, the employer shall pay the employee a compensation that is worth at least the interest on the amount paid behind schedule at the latest 1-month interest rate quoted by the bank at which the employee’s salary account is opened./.

VSS