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Can employer deduct salary because an employee is late for work?

Enterprise 14/07/2023

In Vietnam, the deduction of salary for being late to work depends on various factors, including the specific provisions in the employment contract, company policies, and labor laws. Industry experts say it is common for organizations to have a comprehensive set of terms and conditions that may also be in the form of by laws that include timings that must be adhered to by all employees. Can companies really deduct salaries if employees report late to work? Please contact immediately Apolo Lawyers Law Firm via email contact@apolo.com.vn or hotline - 0903.419.479 for legal advice and support.

Can employer deduct salary because an employee is late for work?

In Vietnam, the deduction of salary for being late to work depends on various factors, including the specific provisions in the employment contract, company policies, and labor laws. Industry experts say it is common for organisations to have a comprehensive set of terms and conditions that may also be in the form of by laws that include timings that must be adhered to by all employees. Can companies really deduct the salary if employee report late to work? Please contact immediately Apolo Lawyers Law Firm via email contact@apolo.com.vn or hotline - 0903 419 479 for legal advice and support.

1. What are the disciplinary measures for late coming?

In Vietnam, the disciplinary measures for late coming can vary depending on the organization or the policies of company. However, there are some common measures that are often implemented. Here are a few examples:

  • Verbal Warning: The first instance of late coming may result in a verbal warning from the immediate supervisor or manager. They may communicate the importance of punctuality and remind the employee of the policies of company regarding attendance.
  • Written Warning: If the late coming persists after the verbal warning, a written warning may be issued. This serves as a formal notification to the employee, documenting the violation and emphasizing the potential consequences if the behavior continues.
  • Deduction of Wages: Some companies may deduct the salary for the time employees were late. The specific amount deducted can vary and is usually based on the duration of lateness.
  • Performance Evaluation Impact: Repeated instances of late coming may negatively impact the evaluate employee performance. This can result in a lower performance rating, which could affect promotions, salary increases, or other career advancement opportunities.
  • Suspension: In more severe cases or after multiple warnings, an employee may face a temporary suspension from work. This means they are not allowed to come to work for a specific period, usually without pay. The duration of the suspension can vary depending on the policies of company.
  • Termination of Employment: Persistent lateness, especially after multiple warnings and disciplinary actions, can lead to termination of employment. This is considered a last resort and is typically implemented when other measures have failed to correct the behavior.

Can - employer – deduct - salary - because - an – employee - is - late - for - work? - 01Can employer deduct salary because an employee is late for work?

It is important to note that the specific disciplinary measures and their severity can vary among organizations. It is best to consult the policies of company or employee handbook for detailed information on disciplinary actions related to late coming.

2. Cases where the company is allowed to deduct the salary in Vietnam

In Vietnam, employers are generally not allowed to deduct salary without consent of employees. However, there are a few specific situations where deductions may be permitted by law. It is important to note that any other salary deductions, not covered by these specific cases or not agreed upon by the employee, are generally considered illegal in Vietnam. Employers must comply with the labor laws and regulations regarding salary payments and deductions to ensure fair treatment of their employees.

According to the provisions of Articles 102, 129 of the current Labor Code 2019, there are only 03 cases where the employer is allowed to deduct salary, specifically:

  • An employee who causes damage to equipment or otherwise damages the assets of employer.
  • An employee who loses the equipment or assets of employer.
  • An employee consumes the materials beyond the set limits.

In the above two cases, the employee must compensate for part or all of the damage according to market prices or labor regulations. In case there is a contract of liability, compensation must be made according to the contract of liability. In case this is caused by a natural disaster, fire, war, major epidemic, calamity, or another force majeure event which is unforeseeable and insurmountable, and all necessary measures and possibilities for avoidance have been taken, the compensation shall not required.

It is important to note that any other salary deductions, not covered by these specific cases or not agreed upon by the employee, are generally considered illegal in Vietnam. Employers must comply with the labor laws and regulations regarding salary payments and deductions to ensure fair treatment of their employees.

3. Is it possible to discipline employees by deducting their salary in Vietnam?

Article 124 of the Labor Code 2019 stipulates 04 forms of labor discipline, including:

  • Reprimand.
  • Deferment of pay rise for up to 6 months.
  • Demotion.
  • Dismissal.

Thus, deduction of salary is not considered as one of the forms of disciplining employees.

4. What are the penalties for arbitrarily deducting wages in Vietnam?

According to the provisions of Clause 3, Article 19 of Decree 12/2022/ND-CP, except for the cases where it is allowed to deduct the salary mentioned in Section 1, a fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed upon an employer for applying monetary fines or deducting wage instead of disciplinary measures.

Note: The fines specified for the above violations are fines for individuals. The fine level for organizations is equal to 02 times the fine level for individuals.

Thus, in case the employer is an enterprise or an organization, the act of intentionally deducting wages instead of handling labor discipline may be subject to a fine of up to VND 80 million.

Clause 4, Article 19 of Decree 12/2022/ND-CP also stipulates that the remedial measure for the act of applying monetary fines or deducting salary wage instead of disciplinary measures is: being compelled to return collected amounts or pay full salaries to employees.

Can - employer – deduct - salary - because - an – employee - is - late - for - work? - 02Can employer deduct salary because an employee is late for work?

If the client has any difficulties and has any questions about the deduction of employee wages when late, please contact Apolo Lawyers Law Firm via email contact@apolo.com.vn or hotline - 0903.419.479 for the best advice and support.

Apolo Lawyers always provides high-quality professional legal services. For us, the key to success is always to provide customers with the greatest peace of mind and benefits.

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