New regulations on wages paid to employees on annual leave, holidays and Tet
The salary used as the basis for compensation when unilaterally terminating a labor contract illegally as prescribed in Clause 5, Article 42 or Clause 2, Article 43 of the 2012 Labor Code is the salary according to the labor contract at the time the employer or employee unilaterally terminates the labor contract illegally.
This is a notable new regulation mentioned in Decree 148/2018/ND-CP (effective from December 15, 2018).
Specifically, the salary used as the basis for payment to employees on annual leave in Article 111; annual leave increased by seniority in Article 112; public holidays in Article 115 and paid personal leave in Clause 1, Article 116 of the 2012 Labor Code is the salary according to the labor contract (current regulations are the salary stated in the labor contract of the previous month) divided by the number of normal working days in the month according to the regulations of the employer, multiplied by the number of days the employee takes on annual leave, annual leave increased by seniority, public holidays, paid personal leave.
At the same time, additional provisions on salary as the basis for compensation when unilaterally terminating a labor contract illegally are added. Accordingly, the salary as the basis for compensation when unilaterally terminating a labor contract illegally as prescribed in Clause 5, Article 42 or Clause 2, Article 43 of the 2012 Labor Code is the salary according to the labor contract at the time the employer or employee unilaterally terminates the labor contract illegally./.
