Apolat Legal

Currently, the majority of employees go through a probationary period before signing a labour agreement to become official employees. This article will analyse some basic issues of the salary during the probationary period.

Currently, the majority of employees go through a probationary period before signing a labor agreement to become official employees. The salary regime is one of the particular concerns for employees during this period. It is also important for employers to address this issue legally to establish a good image for their company and limit the possibility of being subjected to administrative sanctions. This article will analyze some basic issues of the salary during the probationary period, including: Salary rate; Wages for overtime and night work; Is the regulation on minimum working time to receive probationary salary legal?

1. Salary during the probationary period

Under Article 26 of the Labor Code 2019, the salary during the probationary period must not be lower than 85% of the salary rate of such a job. The specific salary will be agreed upon by the employee and the employer and recorded in the probationary agreement or labor agreement.

In case the employer pays the employee during the probationary period less than 85% of the salary for such a job, the employer will be fined from VND 2,000,000 to VND 5,000,000 (for individuals) or from VND 4,000,000 to VND 10,000,000 (for organizations). In addition, the employer will be required to pay full salaries to employees (Article 10 and Article 6.1 of Decree no. 12/2022/ND-CP).

2. Wages for overtime and night work during the probationary period

In accordance with the current law, there is no distinction between overtime and night work wages paid to probationary employees and those who have signed labor agreements. Therefore, during the probationary period, if the employee works overtime or works at night, his/her salary will be calculated under Article 98 of the Labor Code 2019, specifically as follows:

In case of working overtime, the employee will be paid:

  • On normal workdays, at least equal to 150% of the salary unit or actual salary paid for his/her current job;
  • On weekends, at least equal to 200% of the salary unit or actual salary paid for his/her current job;
  • On public holidays and paid leave days, at least equal to 300% of the salary unit or actual salary paid for his/her current job.

In case of working at night: the employee will be paid an additional amount of at least 30% of the salary unit or actual salary paid for his/her current job.

In case the employer does not pay or does not pay enough overtime wages or night work wages, the employer will be fined up to VND 50,000,000 (for individuals) or up to VND 100,000,000 (for organizations). In addition, the employer will be required to pay full wages and the interest on the late payment or underpayment thereof to the employee, calculated according to the highest demand deposit interest rate of the state commercial banks announced at the time of the penalties (Article 17 and Article 6.1 of Decree no. 12/2022/ND-CP).

3. Is the regulation on minimum working time to receive probationary salary legal?

Currently, many probationary agreements stipulate the minimum number of working days to receive probationary salary. For example: During the probationary period, if the employee does not work for 10 days, the company will not pay the employee.

Under Article 27.2 of the Labor Code 2019: “During the probation period, each party may terminate the signed probation agreement or labor agreement without prior notice and compensation”.

Accordingly, even if the employee notifies the termination of the agreement at any time during the probationary period, the employee will not suffer any legal consequences regarding any issues, including salary. Therefore, regardless of the actual working time, in case the agreement is terminated, the employer must pay the employee for the number of actual working days.

In conclusion, the agreement stipulating the minimum working time to receive a probationary salary is not legal under the provisions of labor law. Therefore, this issue should not be agreed upon in the agreement.

Although current law does not have administrative sanctions for probationary agreements/labor agreements having the above provisions, in case the employer does not pay probationary salaries to the employee, the employer will be fined up to VND 5,000,000 (for individuals) or up to VND 10,000,000 (for organizations). In addition, the employer will be subject to remedial measures in accordance with the law (Article 10 and Article 6.1 of Decree no. 12/2022/ND-CP).

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Apolat Legal

Established in 2014, Apolat Legal is a licensed law firm providing a board range of legal services in multiple practice areas for domestic and international clients. The firm commits resolving legal issues regarding businesses thoroughly and in the most beneficial way for various clients in Vietnam.

Apolat Legal is also honored to receive numerous recognitions and/or articles posted by world-leading and local organizations and publications including: The Law Association for Asia and the Pacific (LawAsia, 1966), The Legal500, IP Link, AIPPI, IP Coster, Lexology, Global Trade Review (GTR), The Saigon Times, etc.

Apolat Legal lawyers have long been recognized for their legal expertise and paid attention to their dedication in work as well as the capacity to take advantages from their relationship to maximize the interests of clients. The lawyers will be grouped into specialized teams, directly participate in each case to provide advices and close support to customers, thereby quickly completing the assigned work in the most effective way.

APOLAT LEGAL’s reputation and the quality of its services are reflected by its clients. We are serving nearly 1,000 clients both local and foreign clients. Some past and current long-term clients which the firm worked with such as: LG Electronics, Coastal Living Land Joint Stock Company, Wall Street English, Hochiki Asia Pacific Pte.Ltd, Asus Technology (Vietnam) Company Limited, AEON Mall Vietnam, Baskin Robbin, Citigym, Woori Bank Vietnam Limited, Central Group, CJ Gemadept Logistics Holdings Company Limited, K Group Company Limited, Digiworld Corp., Yellow Cab Pizza, Bamboo Capital Joint Stock Company, Sinobright Pharma Co. Limited, Mayekawa, Sky Music Jsc, Oxalis Holiday Company Limited, PGT Holdings, Vinacapital, Capitaland, Donghyup,...

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