Certain new points on employees' wages

From 1 January 2021, the Labor Code 2019 has officially taken effect. On the basis of inheriting the provisions of Labor Code 2012, the Labor Code 2019 has overcome most of the shortcomings in the previous code relating to employees’ wages.

In this video, PL & Partners Law Firm will go over some outstanding new points relating to employee’s wages that you and your friends can grasp.

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Regarding the wages, the Labor Code 2019 has some notable new points as follows:

1. REMOVE THE PROCEDURES FOR REQUESTING EMPLOYERS TO SEND WAGE SCALES, WAGE TABLES TO STATE MANAGEMENT AGENCIES.

The Labor Code 2012 stipulates that: when building the wage scales, wage tables and labor norms, the employers must send it to the district-level labor state agency where their production and business facilities are located.

The Labor Code in 2019 has abolished this procedure in order to reduce administrative procedures for enterprises.

2. REQUIRE THE EMPLOYERS TO NOTIFY THE EMPLOYEES OF PAY SLIP.

Article 95 of the Labor Code 2019 stipulates that: For every wage payment, the employers must notify the employees of the pay slip, which clearly states the wages, overtime pay, nighttime pay, reason and amount of deduction (if any).

This regulation aims to make wages transparent and prevent disputes.

3. SUPPLEMENT REGULATION ON REQUIRING EMPLOYERS TO PAY ACCOUNT OPENING FEES WHEN PAYING THROUGH BANK TRANSFER.

Previously, the Labor Code 2012 stipulates that: when paying wages through a bank account, the employers and the employees agree on fees related to opening and maintaining the account.

But now the Labor Code 2019 specifies that the employer is liable to pay the fees related to the account opening and wage transfer, instead of “agreed by parties” as stipulated in the Labor Code 2012.

4. SUPPLEMENT REGULATIONS THAT EMPLOYERS SHALL NOT FORCE EMPLOYEES TO USE THEIR WAGES TO BUY GOODS AND SERVICES.

This new regulation is intended to ensure the employees’ rights to their wages and to overcome the situation where many enterprises deliberately force their employees to spend wages on goods and services of the employers or of other entities designated by the employers.

5. ADJUST REGULATIONS ON THE WAGES DURING THE SUSPENSION OF WORK.

The Labor Code 2012 stipulates that the wage for suspension of work due to an objective incident is mutually agreed upon by the two parties but must not be lower than the regional minimum wage prescribed by the Government.

This restriction on the wages paid to the employee in all cases at the time of suspension has caused many difficulties for enterprises, especially in the cases of objective incidents such as natural disasters, fires, epidemics, etc. where the downtime is relatively long. The COVID-19 pandemic has been a clear demonstration of the great influence of an objective incident on the existence of enterprises. The provisions of Labor Code 2012 have not yet ensured the principle of protecting the legitimate rights and interests of the employer.

Therefore, the Labor Code of 2019 supplements that both parties shall agree on the wages during the suspension of work in the following cases:

Due to electricity and water problems that are not the employer’s fault;
Due to natural disasters, fires, dangerous epidemics, sabotage, relocation at the request of competent authorities; or
For economic reasons

And as follows:

Where the suspension lasts for up to 14 working days, the agreed suspension wage shall not be lower than the minimum wage;
Where the suspension lasts for more than 14 working days, the wage during the work suspension shall be agreed by the two parties, providing that the wage during the first 14 days of the work suspension must not be lower than the minimum wage.

It can be seen that this new regulation shows the employee’s share in the employer’s difficulties.

6. SUPPLEMENT BONUS FORM.

The Labor Code 2012 only stipulates the form of monetary bonus while in fact, in many enterprises, the bonus regulations state a variety of reward forms, not only in cash but also in other material conditions such as motorbikes, cars, furniture, real estate, trips, etc.

To be more realistic, the Labor Code 2019 has expanded the form of bonus, whereby the employer can reward the employee with money, property or other forms based on their results of production, business and the employee’s level of completion of work.

In conclusion, PL & Partners Law Firm has shared with you and your friends some new points related to wages according to the Labor Code 2019.

In case you need further legal assistance, please contact us at:

PL AND PARTNERS LAW FIRM

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The article is based on the current legal regulations at the time of writing, and it may no longer be valid or relevant at the time you are reading it due to changes of the law. The article, therefore, is seen as reference only.