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Note to employers regarding Tet vacation

2024/02/15

With the Tet vacation approaching, here are three important reminders for employers related to the Tet vacation.

1. Whether tet bonuses are mandatory or not:
So-called “Tet bonuses” and “bonuses” in general are not legally required to be paid by employers to workers. Whether bonuses are paid or not depends on the employer’s policies and internal regulations.
Therefore, the employer shall establish in advance the criteria, conditions, timing, and amount of the bonus payment or its calculation criteria and method in its internal regulations, etc., and shall decide whether or not to pay the bonus and the amount of the bonus payment based on the regulations and in consideration of the actual situation of the company.

2. Whether or not overtime work is allowed during the Tet vacation period and the calculation method for overtime pay:
In accordance with the current Labor Law and Decree 145/2020/ND-CP, Tet vacation is considered to be a New Year’s Day and a national holiday, therefore, all work during this period shall be considered as overtime work. Employers who wish to have workers work overtime during Tet vacation must obtain the consent of the workers.
The wage (overtime) for overtime work during Tet vacation is 300% of the regular hourly wage. This 300% overtime pay must be paid in addition to regular wages.
In addition, if a worker works late at night during the Tet period, two types of additional wages shall be paid in addition to the overtime wages mentioned above, based on the following calculation method
◆Wages equivalent to at least 30% of the regular hourly wage
◆Wages equivalent to at least 20% of the wages calculated on the basis of wages paid for work during weekends, holidays and New Year’s days

3. Whether wages can be paid in advance before Tet vacation:
Under current labor law, workers are entitled to advance payment of wages in accordance with mutually agreed upon conditions.
Therefore, if a worker needs an advance payment of wages prior to Tet and the employer agrees, the worker may receive an advance payment of wages. No interest is charged in this case. The amount of the advance payment can be mutually agreed upon between the worker and the employer, as there is no legal stipulation on the amount of the advance payment.
In determining the amount of the advance payment, the employer must first receive a proposal from the worker, and then the employer is required to consider the proposal and agree on the amount after consultation with the worker.

The above are some of the labor-related issues that are frequently asked about in relation to Tet vacation, and employers should confirm and comply with them.