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Unilaterally terminate the labor contract because of not receiving salary

06/02/2021

Question: Good morning Company and Attorney. The company I work for does not pay me (the pay period is on the 15th of every month but it is currently the 15th of the following month but I have not received the salary from the previous month). I have asked many times but all received the answer that the company does not have money to pay salary. I want to ask in this case can I terminate the Labor Contract with the company to work elsewhere?

Thank you for submitting questions to Khoa Tin Law Firm, on this matter, we would like to answer as follows:

According to the provisions of Clause 2, Article 35: The right to unilaterally terminate the labor contract of the employees The Labor Code 2019 is as follows:

"2. An employee has the right to unilaterally terminate the labor contract without prior notice in the following cases:

a) Not being assigned to the correct job or working place or failing to ensure the agreed working conditions, except for the case specified in Article 29 of this Code;

b) The employee is not paid in full or on time, except for the case in Clause 4 Article 97 of this Code;

c) The employer is mistreated, beaten, or verbally abusive, acts affecting health, dignity or honor; forced labor;

d) Being sexually harassed at the workplace;

dd) The pregnant female employee must take leave as prescribed in Clause 1 Article 138 of this Code;

e) To reach the retirement age as prescribed in Article 169 of this Code, unless otherwise agreed by the parties;

g) The employer provides dishonest information as prescribed in Clause 1, Article 16 of this Code, affecting the performance of the labor contract."

Clause 4, Article 97 of the Labor Code 2019 stipulates:

4. In case, due to force majeure, the employer has found all remedies but cannot pay the salary on time, the delay must not exceed 30 days; If the salary is delayed for 15 days or more, the employer must compensate the employee with an amount at least equal to the interest of the deferred payment calculated according to the 1-month term deposit interest rate due to The bank where the employer opens the salary payment account for the employee published at the time of salary payment.

Thus, according to your question, the company did not pay the employee on time (late 30 days) without being subject to the circumstances of force majeure as specified in Clause 4, Article 97 above. Therefore, in this case, you are completely entitled to unilaterally terminate the labor contract with the company.

Above is the answer of Khoa Tin Law Firm, in case you still have any questions, please contact us for more specific answers.

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