Suspension Pay in Vietnam

Oct 07, 2024

HR & Payroll

Suspension Pay in Vietnam

Overview

Suspension pay refers to wages paid to employees when they are not working due to reasons beyond their control, as prescribed by law or as agreed upon.

According to Article 99 of the 2019 Labor Code, there are three circumstances under which employees are entitled to suspension pay:

If due to the fault of the employer, the worker shall be paid the full wage according to the employment contract.
If due to the fault of the worker, the worker shall not be paid. However, other workers in the same unit who have to suspend their work shall be paid a wage as agreed upon by the two parties, which shall not be lower than the minimum wage.
If due to an electricity or water supply malfunction that is not due to the fault of the employer or due to force majeure in the event of a natural disaster, fire, dangerous epidemic, sabotage, or relocation upon the request of a competent state authority or due to economic reasons, the wages during the suspension of work shall be agreed upon by the two parties as follows:

- Where the suspension of work lasts for up to 14 working days, the agreed suspension wage shall not be lower than the minimum wage.
- Where the suspension of work 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.

Other Provisions Related to Suspension Pay:

Reassignment to a different position (Article 29 of the 2019 Labor Code):
- An employee reassigned to a position different from that in their labor contract shall receive the wage applicable to the new position. If the new position’s wage is lower than the wage for the previous position, the employee will maintain their previous wage for a period of 30 working days. The new wage must be at least 85% of the wage for the old position but must not be lower than the minimum wage.
- If the employee does not agree to temporarily work in a different position for more than 60 cumulative working days in one year and must stop working, the employer must pay suspension pay in accordance with Article 99 of the 2019 Labor Code.
In the event of a strike (Article 207 of the 2019 Labor Code):
- Employees who do not participate in the strike but are forced to stop working due to the strike are entitled to suspension pay as prescribed in Clause 2, Article 99 of the 2019 Labor Code, as well as other benefits under labor law.
- Employees participating in the strike are not entitled to wages or other benefits under the law unless otherwise agreed upon by the parties.

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Legal Disclaimer: The information provided is for general informational purposes only and does not constitute legal advice. For specific legal advice on compliance in Vietnam, schedule a consultation with NetViet or consult legal counsel.

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