Answer:
Trade union fees
According to the law, all enterprises have to pay trade union fees according to regulations regardless of whether they have a trade union or not. If enterprises do not pay the trade union fee, they will be fined 18% – 20% of the total payable amount but not exceeding 75,000,000 VND (Article 37 of Decree No. 28/2020/NĐ-CP).
Level of payment: 2% of the salary fund used to pay Social Insurance for the employees (who have must pay social insurance).
Distribution: If enterprises have established union local:
– Union local is allowed to retain 70% of the total trade union fee that collected.
– Superior trade union is allowed to use 30% of the total trade union fee that collected.
Check-off
If enterprises have trade union, the employees who join the trade union shall pay 1% of the salary for Social Insurance, but the maximum of monthly union fees is 10% of the base salary. If the employees do not join trade union, they do not have to pay check-off.
Distribution:
– Union local is allowed to retain 60% of the total trade union fee that collected.
– Superior trade union is allowed to use 40% of the total trade union fee that collected.
If enterprises do not have trade union, the employees do not have to pay the check-off and the superior trade union won’t collect, the enterprise doesn’t pay the check-off for the superior union.
Payment of deadline
Enterprises pay trade union fund and check-off (if any) once a month at the same time of paying the compulsory social insurance for employees.
Place of payment: The Confederation of Labor (district) where the enterprise is located.
Answer
From Jan 1, 2021, the Employers will not be able to pay for the unused paid leaves at every year end, when the employees haven’t taken all paid leaves.
Prior to 2021, in order to pay for the unused paid leaves at every year end, the employers have been basing on the vague word “or due to other reasons” in the Clause 1 Article 114 of Labor Law 2012.
However, in Labor Law 2019, this regulation was revised as belows:
“An employee who, due to employment termination or job loss, has not taken or not entirely taken up his/her annual leave shall be paid in compensation for the untaken leave days.”
In other words, In Labor Law 2019, the acceptable reasons for an employer to pay employees for the unpaid leaves they has not taken up is now specified and limited to only “Employment termination” and “Job loss”.