NEW POINTS IN THE 2019 LABOR CODE (PART 2)

Following the article on new points in the 2019 Labor Code part 1, KAV Lawyers would like to provide some new points according to the 2019 Labor Code part 2.

IT IS POSSIBLE TO PAY FOR PERSON AUTHORIZED BY EMPLOYEES.

Accordingly, the 2019 Labor Code has the following principles of wage payment: An employee must be paid with a full wage in a direct and timely manner. In case the employee is unable to receive wages directly, the employer may pay the wage to the person authorized by the employee.In addition, there are additional regulations on prohibiting employers from restricting or interfering with the right to self-determination of wage expenditures of employees, not forcing employees to spend wages on the purchase of goods or services of employers or other agency appointed by employers.

THE EMPLOYER DOES NOT NEED TO SEND WAGE SCALES AND WAGE TABLE TO THE COMPETENT AUTHORITIES.

The 2012 Labor Code stipulates that: ” When formulating the wage scale, wage table and labor norms, an employer shall consult the representative organization of the grassroots-level employees’ collective and publish this information at the workplace of the employees before implementation, and concurrently send them to the district-level state management agency of labor of the locality in which the employer’s production and business establishments are located”. However, the 2019 Labor code has dismissed the regulation on sending to the district-level state management agency. Accordingly, Clause 3, Article 93 of the 2019 Labor Code stipulates: “The employer must consult with the organization representing the employee at the establishment for the place where the organization represents the employee at the establishment when formulating the wage scale, wage table and labor norms. The wage scale, wage table must be publicly announced in the workplace before implementation.”

EMPLOYERS MUST PAY FEES RELATED TO ACCOUNT OPENING AND WAGE TRANSFER

The 2012 Labor Code only stipulates that “Wage may be paid by cash or via the employee’s personal account opened at a bank. In case the wage is paid into the bank account, the employer shall negotiate with the employee on any fees related to the opening and maintenance of the account”.  Meanwhile, The Labor Code 2019 stipulates the method of pay in case of payment through a bank account as follows: “In case of payment through the employee’s personal account opened at the bank, the employer must pay the fees related to the opening of the account and the transfer of wages”. Thus, the 2012 Labor Code for the parties to agree on the payment of fees, the 2019 Labor Code is responsible for paying the costs associated with opening an account and paying wages that will belong to the employer.

THE EMPLOYER MUST NOTIFY THE WAGE TABLE FOR THE EMPLOYEE

Labor Code 2012 does not have this provision, The 2019 Labor Code stipulates in Article 95 as follows: “Each time the employer pays wages, the employer must notify the wage table to the employee, clearly state the salary, overtime wage, night work wage, content and deductible amount (if any)”.

BONUSES CAN BE MORE THAN JUST MONEY

Accordingly, as prescribed in the 2012 Labor Code, bonus is a sum of money paid by an employer to his/her employees on the basis of annual business results and the level of work performance of employees. However, the 2019 Labor Code has expanded the subject, accordingly, the bonus here is not only money but also property or other forms, Clause 1 Of Article 104 stipulates that The bonus is a sum of money or property or in other forms that the employer rewards the employee based on the production results, business, the level of work completion of employees”.

REGULATIONS ON ADVANCE WAGE

Accordingly, the 2012 Labor Code stipulates 02 cases of advance wage:

– An employee may be given a wage in advance according to the conditions agreed upon by the two parties.

– An employer shall advance a wage amount to an employee corresponding to the number of days off which the employee takes to perform citizens’ obligations from 1 week to 1 month at most. The employee shall refund this advance amount, except the case that he/she performs military services.

The 2019 Labor Code stipulates one more case in Clause 3 of Article 95: “When taking annual leave, the employee is given an advance of at least equal to the wage of the holidays”.

Above is an article about the new point of the 2019 Labor Code (part 2), if you have any questions or any other legal advice, please contact KAV Lawyers by the contacts below:

Email: [email protected] or [email protected]

Phone: (+84) 28 6270 7075 or (+84) 949 761 861

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