Penalties to be imposed on businesses delaying staff payments
According to the Vietnamese Government Decree No 05 regarding the implementation of a number of issues in the Labour Code, as from early March if the payment of salaries to employees is delayed by 15 days or more, the employers will receive an administrative fine. Moreover, an additional amount must be paid to the employees equal to the late paid amount multiplied by the interest rate published by the State Bank of Viet Nam.
Salaries unpaid or delayed for several months by some businesses have resulted in strikes and dissatification amongst local employees. A net manufacturing company in Cam Le District’s Hoa Cam Industrial Park and an unidentified construction consultancy company are typical examples. Strikes by these companies’ employees have erupted as they demanded their unpaid salaries.
Workers at a company in Hai Chau District on strike about delayed payment of salaries |