WHAT EMPLOYEES NEED TO DO IN CASE THE EMPLOYER DELAYS PAYING SALARY
The end of the year is also the time when the employer needs to settle taxes and many other financial obligations, resulting in delayed salary payments for employees. In reality, the situation of delayed salary payments is quite common, significantly impacting the quality of life for employees, especially during the period when they need to prepare for the upcoming year. In this article, we will discuss legal issues associated with the practice of delayed salary payments by the employer and provide solutions for employees when their salaries are delayed.
1. Legal regulations on salary payment principles
According to the provisions of Article 94.1 of the 2019 Labor Code, the salary payment principles are as follows: “Employers shall directly, fully and punctually pay salaries to their employees. In the cases where an employee is not able to directly receive his/her salary, the employer may pay it through a person legally authorized by the employee.”
Accordingly, the employer has the obligation to pay salaries directly, fully and on time to employees or their legally authorized representative. The delay or failure of employers to pay salaries to employees is considered a violation of salary payment principles as outlined in the 2019 Labor Code.
In addition, in case due to unavoidable reasons and the employer has tried all remedies but is still unable to pay salaries on time, the employer is allowed to delay paying salaries to employees but not more than 30 days according to the provisions of Article 97 of the 2019 Labor Code.
Note: In case a salary is paid at least 15 days behind schedule, the employer is required to compensate employer with an equal to at least the interest on the delayed payment, based on the latest 1-month interest rate quoted by the bank at which the employee’s salary account is held.
2. Administrative penalties for late payment of salaries
Employers that delay paying salaries to employees will be subject to administrative sanctions according to Article 17.2 of Decree 12/2022/ND-CP regulating administrative sanctions in the field of labor. Accordingly, the employers that do not pay salaries on time according to the provisions of law will be subject to a fine ranging from VND 5,000,000 to VND 50,000,000 depending on the severity of the violation against employees.
In addition to the main form of penalty, which is a fine, Article 17.5 of Decree 12/2022/ND-CP also stipulates remedial measures for employers that commit late payment of salaries as follows: Compelled to pay full salaries plus interests on late payments or insufficient payments of salary, which are calculated at the highest rate of the demand deposit interest rates publicly quoted by state-owned commercial banks on the date of penalty imposition, to employees.
3. Legal solutions for employees when salaries are delayed
According to Article 15, Article 20 and Article 23 of Decree 24/2018/ND-CP, if the employer fails to pay salaries on time, employees have the right to complain as follows:
– Lodge the first complaint to the enterprise where the employee works for resolution.
– In case the enterprise does not respond to the complaint after 30 days from the date the employee filed the first complaint or the employee does not agree with the enterprise’s complaint resolution result, the employee will send a complaint to the Chief Inspector of the Department of Labor, War Invalids and Social Affairs where the enterprise is headquartered.
Note: Employees should file complaints according to the aforementioned procedure, in accordance with the provisions of law.
4. Responsibility for paying salaries of the employer
The employer’s late payment of salary to workers is a violation of labor law and result in administrative penalties. Accordingly, employers must comply with the law and fulfill the obligation of paying salaries in full and on time to employees. Additionally, the employer is required to pay interest for the delayed salary payments and may be fined from VND 5,000,000 to a maximum of VND 50,000,000.
Above are our legal sharing on the act of delayed salary payments and solutions for employees when facing such delays. Hopefully through this article, TNTP can help you better understand legal solutions for workers to protect their rights and legitimate interests against violations of corporate obligations.
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