What to Do When Your Company Doesn’t Pay Salary in Vietnam?

Short answer: When the company owes wages, the employee should proceed in this order: (1) request the company to pay wages in writing; (2) if unresolved, complain to the competent state agency or request a labor mediator to resolve; (3) if mediation fails, request the Labor Arbitration Council (if both parties agree) or file a lawsuit at the Court. Employees owed wages also have the right to unilaterally terminate the labor contract without prior notice. This article provides detailed guidance on rights and how to claim wages under the Labor Code 2019 and Decree 12/2022/ND-CP.

Legal basis

• Labor Code 2019 (45/2019/QH14): Article 35 (employees’ right to unilaterally terminate contracts), Articles 94–95 (principles and time limits for salary payment), Articles 188–192 (labor dispute resolution);
• Decree 12/2022/ND-CP on administrative penalties in the labor sector.

What are the company’s salary payment obligations?

Under the Labor Code 2019, employers must pay salary directly, in full and on time to employees. In special cases of force majeure where all remedial measures have been taken but salary cannot be paid on time, the delay may not exceed 30 days; if salary is paid late by 15 days or more, the employer must pay additional compensation as prescribed.

A company owing wages for many months without a payment plan is violating labor law and may be subject to administrative penalties.

Penalty levels when enterprises owe wages

Under Decree 12/2022/ND-CP, employers who pay salary late, incompletely or not at all are fined from VND 5,000,000 to VND 50,000,000 depending on the number of affected employees. In addition to fines, employers are subject to remedial measures: forced payment of full salary plus interest calculated at the highest demand deposit interest rate of state-owned commercial banks announced at the time of penalty for the late-paid salary amount.

What should employees do when the company does not pay salary?

Step 1. Request the company to pay in writing

The employee should send a written salary payment request (email, official letter with receipt confirmation) to the company’s leadership, specifying the amount of wages owed, the period of arrears and the payment deadline. This is the fastest, least costly step and creates evidence for subsequent steps if the company does not cooperate.

Step 2. Complain to the competent state agency

If the company deliberately does not pay, the employee may complain to the state labor management agency (Department of Home Affairs) or the Labor Inspectorate for consideration and administrative handling of the enterprise’s violation.

Step 3. Request a labor mediator

Under the Labor Code 2019, salary disputes must go through mediation by a labor mediator before requesting arbitration or the Court (except certain special cases prescribed by law). The time limit for requesting mediation is 06 months from the date of discovering the violated lawful rights and interests. The mediator conducts mediation within 05 working days from receipt of the request.

Step 4. Request the Labor Arbitration Council or file a lawsuit

• Labor Arbitration Council: applies when both parties agree to choose it; the time limit for request is 09 months; resolution within 30 days from the establishment of the arbitration panel.
• Court: the time limit for requesting the Court to resolve a labor dispute is 01 year from the date of discovering the violated lawful rights and interests. The employee files the lawsuit at the competent People’s Court where the enterprise is headquartered.

Can employees owed wages quit immediately?

Yes. Under Clause 2, Article 35 of the Labor Code 2019, employees have the right to unilaterally terminate the labor contract without prior notice when they are not paid salary in full or not paid on time (except in force majeure cases where the employer has taken all remedial measures but cannot pay on time). Upon lawful unilateral termination, the employee enjoys severance allowance (if eligible) and social insurance book finalization.

Dossier the employee should prepare

• Labor contract, contract appendices, salary decisions/payroll scales;
• Timesheets, bank statements of salary receipts proving the company’s arrears;
• The written salary payment request sent to the company and evidence of the company’s receipt/non-response;
• Emails and messages exchanged about the salary arrears;
• Social insurance book and personal identification papers.

Frequently asked questions

The company owes 6 months’ salary; can the employee sue immediately?

Salary disputes must first be mediated by a labor mediator, except in cases exempted by law. The employee should request mediation within the 06-month time limit; if mediation fails or is not conducted within the time limit, then file a lawsuit at the Court within the 01-year time limit.

Is severance allowance available when quitting due to unpaid salary?

If the employee unilaterally terminates the contract in compliance with regulations (due to unpaid salary) and has worked regularly for 12 months or more, severance allowance is available under the Labor Code 2019.

Is a company that owes salary penalized?

Yes. The employer is fined from VND 5,000,000 to VND 50,000,000 depending on the number of affected employees, and is forced to pay full salary plus interest under Decree 12/2022/ND-CP.

Notes on applying current legislation

This article is labor knowledge presented for reference, helping readers understand the legal issue at an overview level before taking steps to claim their rights. Legal regulations may change over time and depend on the specific circumstances of each case; from 01/7/2025, the local government system has only two levels (provincial and commune/ward), with corresponding changes in the competence of Courts and labor management agencies. Where you need to determine the exact procedures applicable to your case, please contact ANT Legal lawyers at 0966.475.966 for verification and advice before acting.

Common risks to note

• Skipping the mandatory mediation step leading to the lawsuit being returned.
• Missing the time limit for mediation (06 months) or lawsuit (01 year).
• Lacking evidence proving the labor relationship and the amount of salary owed.
• Unilaterally quitting on improper grounds, losing severance benefits.

How can ANT Legal help?

ANT Legal supports dossier review, calculation of owed salary and interest, drafting request letters and complaint/lawsuit petitions, and representing employees in working with labor mediators, the Labor Arbitration Council and the Court. For prompt advice, please contact our lawyers at 0966.475.966.

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