Time during which businesses can delay paying salaries to employees?

1. How long can a business delay paying employees?
Pursuant to Clause 4, Article 97 of the 2019 Labor Code, in cases where due to force majeure the company has sought all remedial measures but cannot pay wages on time, the delay must not exceed 30 days; If salary is paid late for 15 days or more, the company must compensate the employee with an amount at least equal to the interest on the late payment amount calculated according to the 1-month term deposit interest rate announced by the bank where the company opens the employee’s salary account at the time of salary payment.

Thus, businesses can delay paying employees in case of force majeure reasons when the business has tried all remedies but cannot pay salaries on time. But not more than 30 days. If the salary is delayed for 15 days or more, the employee must be compensated with an amount at least equal to the interest on the late payment according to regulations.

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

– Employees are given a salary advance according to the conditions agreed upon by both parties and no interest is charged.

– The company must give the employee a salary advance corresponding to the number of days the employee is temporarily off work to perform civic duty for 01 week or more but must not exceed 01 month’s salary according to the labor contract and the employee must repay the advance amount.

Employees who enlist according to the provisions of the 2015 Military Service Law are not entitled to advance pay.

– When taking annual leave, employees are given an advance of money at least equal to the salary for the days off.

3. According to what principles are employees paid?
Pursuant to Article 94 of the 2019 Labor Code, the principles of paying salaries to employees are prescribed as follows:

– The company must pay salaries directly, fully and on time to employees. In case the employee cannot receive salary directly, the company can pay salary to the person legally authorized by the employee.

– The company must not restrict or interfere with employees’ right to decide on salary spending; Do not force employees to spend their salary on purchasing goods or using services of the company or other units designated by the company.