How Long May an Enterprise Delay Salary Payments to Employees?

1. How long may an enterprise delay paying salaries to employees?
Under clause 4 Article 97 of the Labor Code 2019, where due to force majeure the company has exhausted all remedial measures but cannot pay salaries on time, the delay must not exceed 30 days; if salaries are delayed by 15 days or more, the company must compensate employees an amount at least equal to the interest on the delayed amount calculated at the one-month term deposit interest rate announced by the bank where the company opens the salary payment account at the time of payment.

Thus, an enterprise may delay salary payments to employees only in cases of force majeure where the enterprise has exhausted all remedial measures but cannot pay salaries on time — but for no more than 30 days; and if the delay is 15 days or more, it must compensate employees an amount at least equal to the interest on the delayed amount as prescribed.

2. How may employees receive salary advances?
Under Article 101 of the Labor Code 2019, salary advances are regulated as follows:

– Employees may receive salary advances under conditions agreed by both parties and are not charged interest.

– The company must allow employees to take salary advances corresponding to the number of days the employee temporarily takes leave to perform citizen obligations of 1 week or more, but not exceeding 1 month’s salary under the labor contract, and the employee must repay the advanced amount.

Employees joining the army under the Law on Military Service 2015 are not entitled to salary advances.

– When taking annual leave, employees may take an advance of at least the salary for the days of leave.

3. Under what principles must employees be paid salaries?
Under Article 94 of the Labor Code 2019, the principles of salary payment to employees are regulated as follows:

– The company must pay salaries directly, fully, and on time to employees. Where an employee cannot receive the salary directly, the company may pay the salary to a person lawfully authorized by the employee.

– The company may not restrict or interfere with employees’ right to decide on the spending of their salaries; may not force employees to spend their salaries on purchasing goods or using services of the company or of another unit designated by the company.