5 cases for employees to receive advance payment of wages

In accordance with the provision prescribed in the Labor Code 2019, employers must give advance payment of wages in some cases.  What are the cases for employees to receive an advance payment of wages?

5 cases for employees to receive an advance payment of wages

In accordance with Clause 3, Article 97, Labor Code 2019 prescribes that employees enjoying wages based on product or piecework shall be paid as agreed upon by the two parties;

If the work is to be performed for more than one month, the employee shall every month be given an advance wage amount based on the work volume done in the month.

Pursuant to Clause 2, Article 101, Labor Code 2019:

  • The employee may receive an advance payment of wage according to the conditions agreed upon by the two parties which is interest-free.
  • The employer shall give an advance payment of wage to the employee corresponding to the number of days the latter has to suspend work for the performance of citizens’ obligations for 1 week or more. However, the advance payment of wages must not exceed 1 month’s wage as stated in the labor contract. The employee shall refund this advance amount.
  • The employee who is enlisted in the army (under the Law on Military Services) is not entitled to advance payment of wage.
  • While on annual leave, the employee is entitled to advance payment of an amount at least equal to his/her wage amount during the leave period.

At the same time, in accordance with Clause 2, Article 128, Labor Code 2019, during the suspension period, the employee is entitled to advance payment of 50% of his/her wage received before the suspension.

Therefore, 5 cases for advance payment of wages of employees, including:

Case 1: Employees enjoy wages based on product or piecework, the work is to be performed for more than one month.
Case 2: Advance payment of wages shall be agreed upon by employees and employers
Case 3: The employee has to suspend work to perform of citizens’ obligations
Case 4: On annual leave of employees
Case 5: Temporary suspension

Advance payment of wages
5 cases for employees to receive advance payment of wages (Illustration)

What are the fines for not giving advance payment of wages?

Clause 2, Article 17 of the Decree 12/2022 of the Government prescribes the fines shall be imposed on any employer that commits one of violation of regulations on wages.

Accordingly, impose the violation for employers for the acts as follows:

+ Failing to pay wages on time as prescribed by the law provisions

+ Failing to pay or paying inadequate wages to the worker compared to that agreed in the labor contract

+ Failing to pay or paying inadequate wages for overtime work;

+ Failing to pay or paying inadequate wages in case of work suspension as prescribed by the law provisions to workers;

The fines are imposed as follows:

- A fine of between VND 500,000 - VND 1 million for the violations from 01 - 10 employees;

- A fine of between VND 10 million - 20 million for the violations from 11 - 50 employees;

- A fine of between VND 20 million - VND 30 million for the violations from 51 - 100 employees;

- A fine of between VND 30 million - VND 40 million for the violations from 101 - 300 employees;

- A fine of between VND 40 million - VND 50 million for the violations from 301 employees;

Besides, in accordance with the provision in Clause 1, Article 6, Decree No. 12/2022/ND-CP, the above fines are applicable to individuals, and these fines are doubled for organizations.

The employee may receive an advance payment of wage according to the conditions agreed upon by the two parties which are interest-free. (Clause 1, Article 101, Labor Code)

Here is the answer for cases for advance payment of wages of employees. 

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