In which cases can a company pay its employees late? How many days late can a company pay its employees? Please refer to the article below.
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1. How many days late can a company pay salary ?
Article 97 of the 2019 Labor Code stipulates the salary payment period as follows:
- Employees who receive hourly, daily, or weekly wages shall be paid after the working hour, day, or week, or shall be paid in a lump sum as agreed by both parties, but no more than 15 days must be paid in a lump sum.
- Employees who receive monthly salaries are paid once a month or once every two weeks. The time of payment is agreed upon by both parties and must be set at a periodic time.
- Employees who receive wages based on products or contracts are paid according to the agreement of both parties; if the work has to be done over several months, they will receive a monthly salary advance based on the amount of work done during the month.
- In case of force majeure, the employer has taken all measures to remedy the situation but cannot pay the salary on time, the delay must not exceed 30 days ; if the 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 at the interest rate for 1-month term deposits announced by the bank where the employer opens the salary payment account for the employee at the time of salary payment.
Thus, the company is allowed to pay wages up to 30 days late in case of force majeure and the employer has taken all measures to remedy the situation but cannot pay wages on time.
2. Rights and obligations of employees
2.1. Workers' rights
The rights of employees are stipulated in Clause 1, Article 5 of the 2019 Labor Code, including:
- Work; freely choose work, workplace, occupation, vocational training, improve professional qualifications; not be discriminated against, forced labor, or sexually harassed at work;
- Receive salary appropriate to qualifications and professional skills based on agreement with employer; receive labor protection, work in conditions ensuring labor safety and hygiene; take leave according to regime, take annual leave with pay and enjoy collective benefits;
- Establish, join and operate in organizations representing employees, professional organizations and other organizations in accordance with the provisions of law; request and participate in dialogue, implement democratic regulations, collective bargaining with employers and be consulted at the workplace to protect their legitimate and legal rights and interests; participate in management according to the employer's regulations;
- Refuse to work if there is a clear risk that directly threatens life or health during the performance of the work;
- Unilateral termination of employment contract;
- Strike;
- Other rights as prescribed by law.
2.2. Obligations of employees
The obligations of employees are stipulated in Clause 2, Article 5 of the 2019 Labor Code, including:
- Implement labor contracts, collective labor agreements and other legal agreements;
- Comply with labor discipline and labor regulations; comply with the management, operation and supervision of the employer;
- Implement the provisions of the law on labor, employment, vocational education, social insurance, health insurance, unemployment insurance and occupational safety and hygiene.
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