Enterprise deducts employee’s salary: True or false?
Wages are agreed upon by the employee and the employer and specified in the labor contract.
Currently, several enterprises (including leading enterprises in Vietnam) are applying fines for common mistakes of employees and directly deducted from the monthly salary.
Errors with salary deduction, such as violation of working time (tardy, early return), text editing errors (spelling, form), sending email to the wrong address, late deadline, etc.
According to Labor Code 2019, cutting or deducting an employee’s salary is prohibited. Enterprises that arbitrarily reduce or deduct wages may be subject to administrative penalties.
Enterprise deducts employee’s salary: True or false?
How much is the fine for the employee to be fined?
According to Clause 3, Article 18 of Decree 28/2020 on administrative penalties for violations arising from labor, social insurance and sending Vietnamese workers abroad under contracts, the following regulations:
“3. Imposing a fine ranging from VND 10,000,000 to VND 15,000,000 on employers that commit one of the following violations:
- a) Infringing on the body and dignity of employees when disciplining staff or employees to the extent of not being liable to criminal prosecution;
- b) Imposing penalties in the form of fines or salary cuts instead of labor-related disciplinary actions;
- c) Disciplining employees who commit violations that are not prescribed in labor rules;
- d) Imposing multiple labor-related disciplinary actions for an act of violation against labor disciplines.”
Thus, enterprises that arbitrarily cut, or deduct employees’ wages may be fined up to 15 million VND. At the same time, enterprises are forced to pay full wages to employees corresponding to the deducted wages.
Employees who fall into the above cases can petition the grassroots trade union to intervene or send an application to the Division or Department of Labor – Invalids and Social Affairs.
Note: This article is only for informational purposes and is not the legal advice of HTH & Partners. The article belongs to HTH & Partners, so it is subject to change without prior notice.
