Late Salary Payment in Vietnam: Your Rights and Remedies [2026 Guide]

Late salary payments to foreigners in Vietnam carry severe legal consequences. Employers must pay full wages on time and provide interest for delays exceeding 15 days, with administrative fines from VND 5,000,000 to VND 50,000,000 per Decree 12/2022/ND-CP. Foreign workers have identical rights as Vietnamese employees under Article 3 of the 2019 Labor Code and can pursue three resolution paths: internal complaint (30-day response), DOLISA investigation (free enforcement), or court litigation (within 1 year). Maximum legal delay is 30 days only under verified force majeure circumstances.

What Are Your Legal Rights When Salary is Paid Late in Vietnam?

You have the right to receive your salary directly, fully, and on time under Article 94.1 of the 2019 Labor Code. If payment is delayed by 15 or more days, employers must pay interest compensation calculated at the 1-month term deposit rate of the bank holding your salary account.

Legal Foundation – 2019 Labor Code

The Labor Code 2019 (effective January 1, 2021) explicitly states in Article 94: “Employers shall directly, fully and punctually pay salaries to their employees.” This provision applies to all workers in Vietnam, including foreign nationals working under valid work permits or practice licenses issued by competent Vietnamese authorities.

Core Salary Payment Rights

Vietnamese labor law establishes five fundamental protections:

• 1. Direct Payment Right: Employers must pay salaries directly to you or your legally authorized representative per Article 94.1. Employers cannot withhold payment or force you to receive salary through unauthorized third parties without your explicit written consent.
• 2. Full Payment Right: You must receive the complete salary amount specified in your employment contract, including base salary and all agreed allowances. Article 95 specifies salary must be in Vietnamese Dong, though foreign employees may receive payment in foreign currency if clearly agreed in the contract.
• 3. Timely Payment Right: Article 97 mandates specific payment schedules. For monthly salaries, payment must occur once a month or semi-monthly at agreed times. For hourly/daily/weekly workers, payment must occur within maximum 15 days after each work period. Any deviation constitutes a violation.
• 4. Interest Compensation Right: When payment is delayed 15 or more days, Article 97 mandates interest compensation at the latest 1-month term deposit rate of the bank where your salary account is held. For example: VND 25,000,000 salary delayed 30 days at 4.5% annual rate = approximately VND 92,500 interest owed (calculation: 25,000,000 × 4.5% ÷ 12 × 1 month).
• 5. Contract Termination Right: Article 35.2(c) grants you the right to unilaterally terminate your employment contract without advance notice if the employer fails to pay salary beyond the 30-day maximum extension permitted only for genuine force majeure situations.

When understanding your salary rights, it’s equally important to know about What Are Your Overtime and Holiday Pay Rights as a Teacher in Vietnam? to ensure you’re receiving all legally required compensation.

Equal Application to Foreign Workers

Article 3 of the 2019 Labor Code explicitly includes “foreign employees working in Vietnam.” This means foreign workers with valid work permits have identical salary payment rights as Vietnamese nationals—there is no legal distinction based on nationality.

What Penalties Do Employers Face for Late Salary Payments?

Employers face administrative fines from VND 5,000,000 to VND 50,000,000 according to Article 17.2 of Decree 12/2022/ND-CP. The exact penalty depends on the number of employees affected, with higher fines for violations impacting more workers.

Legal Basis – Decree 12/2022/ND-CP

Decree No. 12/2022/ND-CP (issued January 17, 2022, effective March 5, 2022) establishes clear administrative penalties for labor law violations, replacing previous regulations and strengthening enforcement of employer obligations.

Penalty Structure by Number of Affected Employees

The fine tiers per Article 17.2:

Employees Affected	Fine Range
1-10 employees	VND 5,000,000 – VND 10,000,000
11-50 employees	VND 10,000,000 – VND 20,000,000
51-100 employees	VND 20,000,000 – VND 30,000,000
101-300 employees	VND 30,000,000 – VND 40,000,000
301+ employees	VND 40,000,000 – VND 50,000,000

Mandatory Remedial Measures

Beyond monetary fines, Article 17.5 mandates three compulsory remedial measures:

• Compulsory Full Repayment: Employers must pay the complete outstanding salary to all affected employees. No partial payment arrangements are permitted without employee consent. The employer cannot satisfy the penalty by paying only the administrative fine—full wage repayment is mandatory.
• Interest Payment Obligation: Employers must pay interest at the highest demand deposit rate publicly quoted by state-owned commercial banks on the penalty imposition date. This rate is typically higher than the 1-month term deposit rate under Article 97.
• Immediate Payment Timeline: Once DOLISA issues the penalty decision, employers receive 15 days to make full payment of both principal salary and accrued interest.

Additional Enforcement Consequences

• Labor Inspection Audits: DOLISA conducts comprehensive workplace inspections examining overall labor law compliance including working hours, overtime payments, social insurance contributions, and contract documentation.
• Business License Implications: Repeated violations can affect business operations. In severe cases, provincial authorities may suspend the company’s ability to sponsor work permits for foreign employees.
• Employee Civil Claims: Administrative penalties do not prevent employees from filing separate civil lawsuits claiming additional damages, severance payments, or compensation for contract breaches.

How is Interest Calculated for Delayed Salary Payments?

Interest is calculated using the 1-month term deposit rate announced by the bank where your employer opened your salary account, starting from day 15 of the payment delay per Article 97 of the Labor Code 2019.

Calculation Methodology

Standard formula:

Interest Amount = Delayed Salary × Annual Interest Rate ÷ 12 months × Number of Months Delayed

Practical Calculation Example

Scenario:

• Monthly salary owed: VND 30,000,000
• Bank’s 1-month deposit rate: 4.8% per annum (typical rate at major Vietnamese banks)
• Payment delay: 45 days (equivalent to 1.5 months)

Calculation:

• VND 30,000,000 × 4.8% ÷ 12 × 1.5 = VND 180,000
• Total amount owed: VND 30,000,000 (principal) + VND 180,000 (interest) = VND 30,180,000

Critical Threshold – Day 15

Day 14 or less: No interest legally mandated under the Labor Code. Day 15 or more: Interest calculation begins automatically.

This threshold applies regardless of the reason for delay—employers cannot avoid interest payments by claiming administrative processing delays or other non-force majeure explanations.

Bank Rate Determination

The applicable interest rate is specifically the 1-month term deposit rate (not savings account or demand deposit rate) announced by the bank managing your salary account. The rate used is the one effective at the time of actual salary payment, not when payment was originally due.

Administrative Penalty Interest Rate

When cases escalate to DOLISA penalties or court judgments, interest calculation changes. Article 17.5 of Decree 12/2022/ND-CP specifies interest must be “calculated at the highest demand deposit rate publicly quoted by state-owned commercial banks on the penalty imposition date.” This is typically higher than the 1-month term deposit rate.

Partial Payment Scenarios

If your employer pays part of your salary late, interest applies only to the unpaid portion for the period it remains unpaid. Example: If you’re owed VND 20,000,000 but receive VND 15,000,000 on time, interest calculation applies to the remaining VND 5,000,000 from day 15 until full payment.

What Steps Should You Take When Your Employer Delays Salary?

Follow a systematic three-step escalation: (1) file internal written complaint with your employer giving them 30 days to respond, (2) escalate to DOLISA Chief Inspector if response is unsatisfactory, then (3) request labor mediation within 6 months OR file court lawsuit within 1 year of discovering the violation.

Legal Framework – Complaint Procedures

Decree No. 24/2018/ND-CP (February 23, 2018) establishes mandatory procedures employers must follow when receiving employee complaints. Article 15, Article 20, and Article 23 define clear employee rights to file complaints when employers fail to pay salaries on time.

Before Taking Action: Evidence Documentation

Create a comprehensive evidence file including:

• Employment contract showing agreed salary terms and payment schedule
• Payment records: bank statements or payslips documenting delay/non-payment
• Communication evidence: emails/messages requesting payment and employer responses
• Work attendance records proving you fulfilled employment obligations
• Witness information from colleagues confirming work performed and payment delay

Step 1: Internal Written Complaint (Day 1-30)

Submit formal written complaint to your employer addressing HR department, supervisor, or company leadership.

Your complaint must include:

1. Your full name, position, employee ID
2. Specific salary periods and amounts owed (e.g., “October 2025 salary of VND 25,000,000”)
3. Dates when payment was due versus actual non-payment
4. Legal basis: Article 94.1 and Article 97 of the 2019 Labor Code
5. Clear request: “I request full payment of outstanding salary plus applicable interest within 30 days”

Delivery Method: Send via email with read receipt + hard copy in person with received stamp. Keep dated copies with proof of delivery.

Employer’s Response Obligation (Article 15 of Decree 24/2018/ND-CP):

Employers must respond within 30 days by either:

• Acknowledging claim with specific payment schedule and date
• Providing legitimate reasons with supporting evidence if claiming force majeure
• Disputing claim with detailed explanation and counter-evidence

After 30 days of complete silence or unsatisfactory response, you have legal grounds to proceed to Step 2.

Step 2: DOLISA Complaint (Day 31-90)

If employer doesn’t respond after 30 days or you disagree with resolution, Article 20 grants you the right to send complaint to the Chief Inspector of DOLISA where the enterprise is headquartered.

Required Documentation:

• Written complaint summary explaining situation and violation
• Copy of internal complaint (Step 1) with proof of delivery
• Copy of employer’s response OR statement that no response received after 30 days
• All supporting evidence (contract, bank statements, payment records, communications)
• Complete contact information

DOLISA Investigation Process:

Days 1-7: Verify complaint meets requirements and is within jurisdiction

Days 8-60: Labor inspectors contact employer, request explanations and documents, investigate workplace

Days 61-75: If violations confirmed, DOLISA issues:

• Administrative fines: VND 5,000,000 to VND 50,000,000
• Mandatory salary repayment orders + interest
• Comprehensive workplace audits
• Potential criminal referral for large-scale wage theft

Advantages: Completely free (no legal fees), significant government authority, financial penalties motivate prompt payment, doesn’t prevent court litigation later.

Step 3A: Labor Mediation (Within 6 Months)

Legal Timeline: Article 188 establishes 6-month deadline from discovering violation to request labor mediation.

File request with district-level labor conciliation agency (Hội đồng hòa giải lao động cấp cơ sở) in employer’s jurisdiction.

Mediation Session (organized within 5 working days per Article 188):

• Hour 1: Mediator reviews documents, evidence, legal arguments
• Hours 2-3: Joint session – both sides present positions
• Hour 3-4: Mediator proposes settlement terms

If successful: Binding written agreement signed specifying:

• Payment amount including principal + interest
• Specific payment date (typically within 7-14 days)
• Interest compensation calculation
• Employment continuation or termination terms

If failed: Official statement issued (Biên bản hòa giải không thành) enabling court lawsuit filing.

Success Rate: Approximately 60-70% based on Ministry of Labor statistics (higher for clear-cut violations with strong documentation).

Beyond salary payment rights, foreign teachers should also understand Understanding Regional Minimum Wages in Vietnam to ensure full legal compliance.

Step 3B: Court Litigation (Within 1 Year)

Legal Timeline: 1-year deadline from discovering violation to file lawsuit per Article 188. This deadline is strictly enforced—courts dismiss cases filed after this period.

Claimable Remedies:

• Unpaid salary (principal amount for all delayed/non-paid periods)
• Interest compensation per Article 97 and Article 17.5
• Severance allowance if you terminated contract due to non-payment (per Article 46)
• Interest on delayed severance
• Partial reimbursement of reasonable legal costs

Strategic Timeline Considerations

• If You Need Money Quickly: Pursue internal complaint + DOLISA investigation simultaneously. Labor mediation provides fastest resolution for employers willing to negotiate. Consider negotiating reduced settlement for immediate cash payment.
• If You Want Maximum Recovery: Court litigation allows claiming broadest remedies. Longer timeline worthwhile for amounts exceeding VND 50,000,000.
• If Employer is Financially Distressed: Act fast—file DOLISA complaint immediately. Postponing action risks employer entering bankruptcy where recovery becomes highly uncertain.

When Can Employers Legally Delay Salary Payments?

Employers can only legally delay salary for maximum 30 days beyond the agreed payment date, and ONLY under genuine force majeure circumstances per Article 97.2 of the 2019 Labor Code. Force majeure means unforeseeable, unavoidable events preventing payment even after exhausting all remedial measures.

Legal Definition – Article 97 Labor Code

Article 97 states: “In case of a force majeure event in which the employer is unable to pay the employee on schedule after all remedial measures have been implemented, the salary shall be paid within 30 days.”

Recognized Force Majeure Situations

Vietnamese law and court practice recognize only extraordinary circumstances:

1. Natural disasters: earthquakes, floods, typhoons, landslides directly impacting operations
2. Fires or explosions destroying company assets, operational facilities, or financial records
3. Wars or armed conflicts affecting business operations or banking access
4. Government-ordered closures: official mandatory shutdowns by competent state authorities
5. Epidemics/pandemics: ONLY when government-imposed lockdowns officially prevent operations (formal government orders required, not voluntary closures)

What Does NOT Qualify as Force Majeure

Vietnamese courts, DOLISA inspectors, and labor arbitrators consistently reject:

• Financial difficulties or cash flow problems (normal business risks)
• Business losses or declining revenue (employer business risk)
• Waiting for client payments (poor financial management)
• Bank processing delays (employer responsible for planning payment timing)
• Payroll system technical errors (internal operational issues)
• Management decisions to prioritize other payments (intentional illegal violations)

Employer’s Mandatory Obligations During Force Majeure

Even when legitimate force majeure occurs, employers must:

Provide immediate written notice to all affected employees including:

• Specific force majeure event with verifiable details and documentation
• Precisely how event prevents salary payment despite good faith efforts
• What specific remedial measures were attempted
• Expected payment date (within 30 days maximum)

Demonstrate remedial efforts with concrete evidence:

• Formal bank loan/credit line applications with documented rejections
• Asset liquidation efforts (attempts to sell property/equipment)
• Emergency funding requests to parent companies/investors with documentation
• Insurance claims filed (if applicable) with proof of submission
• Government assistance applications with documentation

Absolute maximum extension: 30 days from original payment due date. After this period, delay becomes illegal even if force majeure continues.

Interest compensation: If payment extends beyond 15 days even with legitimate force majeure, interest compensation remains legally required—force majeure does not eliminate interest obligation.

Verifying Employer’s Force Majeure Claims

Request written documentation proving force majeure event (government notices, news reports, official statements).

• Check payment patterns: If other employees received payment during same period, force majeure claim becomes highly questionable and likely fraudulent.
• File DOLISA complaint: Labor inspectors conduct independent investigation and verify legitimacy of force majeure claim.

If false: Employer faces full administrative penalties under Decree 12/2022/ND-CP plus potential additional investigations for fraudulent misrepresentation.

Do Foreign Workers Have the Same Rights as Vietnamese Employees?

Yes, foreign workers in Vietnam have completely equal salary payment rights as Vietnamese nationals under the 2019 Labor Code. Article 3.1 explicitly applies the Code to all employees including foreign employees working in Vietnam with no legal distinction based on nationality.

Legal Foundation – Article 3 Labor Code 2019

Article 3 states the Code “regulates labour standards; the rights, obligations and responsibilities of workers, employers, workers’ representative organisations at the grassroots level, and employers’ representative organisations in labour relations” and applies to “workers, apprentices, trainees, and persons without an employment relationship” including specifically “foreign workers working in Vietnam.”

Identical Rights Under the Law

Foreign employees have exactly the same protections as Vietnamese workers:

• Right to direct, full, timely salary payment (Article 94) – no nationality exceptions
• Right to interest compensation for 15+ day delays (Article 97) – identical methodology
• Right to file complaints with employers and DOLISA (Decree 24/2018/ND-CP) – no discrimination
• Right to request labor mediation and file court litigation (Articles 188-190) – equal access
• Right to unilateral contract termination for non-payment (Article 35) – no additional requirements
• Protection against illegal salary deductions (Article 101)

The Single Legal Difference – Foreign Currency Payment

Article 95.2 provides ONE distinction that BENEFITS foreign workers: “If the employee is a foreigner working in Vietnam, the salary payment to foreigners can be made in foreign currency.”

This means foreign employees may receive salaries in USD, Euros, or other foreign currencies if clearly specified in the employment contract. Vietnamese employees must be paid in VND. This is an optional benefit allowing foreign workers to avoid currency conversion, not a restriction.

Work Permit Holders’ Protections

Foreign workers holding valid work permits issued by DOLISA, practicing licenses, or practicing certificates are explicitly covered by:

• Mandatory social insurance contributions
• Health insurance enrollment
• Comprehensive labor protections under the Labor Code

Your legal work authorization confirms employee status and entitles you to full legal rights without nationality-based limitations.

Equal Access to Legal Remedies

Foreign workers can exercise all enforcement mechanisms:

• Filing DOLISA complaints without discrimination or reduced priority
• Requesting free labor mediation with same procedures and timelines
• Bringing lawsuits in People’s Courts with equal legal standing
• Claiming identical administrative penalties and interest under Decree 12/2022/ND-CP
• Seeking trade union or legal aid assistance

Language Support Availability

For foreign workers with limited Vietnamese fluency:

• Hire professional translators/interpreters for mediation/court proceedings (at your expense)
• Many employers operating internationally accept English-language complaints (though Vietnamese is legally safer)
• Courts may provide English-language decisions upon request (at judicial discretion)
• Numerous Vietnamese labor lawyers speak fluent English and specialize in foreign worker cases

Dispelling Common Misconceptions

Some employers claim “different rules apply to foreigners” or “you should be grateful and not complain” to discourage legal claims.

This is manipulation and legally FALSE.

Vietnamese law makes no distinction in salary payment rights—your nationality does not reduce your rights in any way. If an employer discriminates based on nationality regarding salary payment, this compounds the violation as both:

• Salary law breach (Article 94/97)
• Potential discrimination (Article 8 prohibits discrimination based on nationality/ethnicity)

What Evidence Do You Need to Prove Late Salary Payment?

You need three critical evidence categories: (1) proof of employment relationship showing agreed salary terms and payment schedule, (2) payment records documenting delay or non-payment for specific periods, and (3) communication evidence showing you requested payment and employer’s response or lack thereof.

Legal Evidence Standards – Civil Procedure

Vietnamese civil procedure requires claimants to provide evidence supporting claims per the Civil Procedure Code. While labor law generally favors employee protection, you must demonstrate employment relationship existed, specific salary amounts were agreed, and payment obligations were not fulfilled.

Category 1: Employment Relationship Documents

Primary Document – Labor Contract

The most important evidence is your signed employment contract (Article 14) specifying:

• Agreed monthly/hourly/daily salary amount (VND or foreign currency for foreign workers)
• Payment schedule (e.g., “last day of each month” or “15th and 30th”)
• Payment method (bank transfer, cash, other agreed method)
• Job position, responsibilities, employment start date
• Both employee and employer signatures with contract execution date

Vietnamese law requires written contracts for employment lasting more than one month (Article 14). Contracts should be Vietnamese language or bilingual Vietnamese-English (both have equal legal validity).

Alternative Proof Without Written Contract

If no formal contract exists (employment under one month or verbal agreements), prove employment through:

• Offer letters or acceptance emails discussing employment terms and compensation
• Job descriptions, work assignments, position announcements with salary information
• Internal company documents (employee lists, organizational charts)
• Email exchanges during hiring discussing salary, benefits, terms
• Witness testimony from colleagues, supervisors, or HR confirming employment and compensation

Verbal employment agreements are legally valid under Article 14 if you prove the relationship existed through credible alternative evidence.

Category 2: Payment Records

Bank Account Evidence (strongest proof)

Request official bank statements showing:

• Months when salary deposits occurred on time with exact dates/amounts matching contract
• Months when no deposit occurred proving non-payment
• Partial deposits less than agreed salary proving underpayment

Highlight relevant transactions clearly. Request 12+ months of statements to demonstrate established payment pattern and identify deviations.

Payslip Documentation

Official payslips (phiếu lương) issued per Article 94 requirements show:

• Detailed salary amounts for paid months (base salary, allowances, deductions)
• Gross and net salary calculations
• Deductions, social insurance contributions, tax withholdings
• Missing payslips for unpaid months prove you should have received them but didn’t

The Labor Code requires employers to provide detailed payslips with each payment.

Cash Payment Records

If paid in cash:

• Receipts (biên lai) signed by employer representative
• Witness statements from colleagues who observed cash payments
• Photos/videos documenting cash payments (include visible dates and identifiable employer representatives)

Proving Non-Payment

Demonstrate non-payment through:

• Bank statements showing zero salary deposits for specific months
• Emails/messages to employer requesting missing payslips showing they failed to provide
• Detailed calculation sheet showing paid versus unpaid months with corresponding due dates and amounts owed

Category 3: Communication Evidence

Payment Request Communications

Preserve all communications where you requested salary:

• Emails to HR/management asking when salary will be paid for specific months
• Text messages or chat logs discussing late payment and your inquiries
• Meeting minutes if salary delay raised in team meetings or one-on-ones
• Formal letters requesting payment with delivery confirmation showing employer received

Employer Response Documentation

Save all employer responses:

• Emails/messages where management acknowledges payment delay
• Promises to pay by specific dates subsequently not met (showing breach)
• Excuses/explanations for delay (claiming financial difficulty, administrative issues)
• Documented silence where you sent multiple requests but received no response (demonstrates employer neglect per Decree 24/2018/ND-CP)

Internal Company Communications

If accessible:

• Company-wide announcements about financial difficulties, restructuring, payment delays
• Management memos explaining delayed salaries to employees
• Group chat messages where HR/management discussed payment issues

Category 4: Supporting Evidence

Work Performance Proof

Demonstrate you fulfilled employment obligations:

• Attendance records (time sheets, clock-in/out logs) showing you worked full periods
• Work assignments (emails, documents showing tasks assigned and completed)
• Performance reviews proving you met job obligations and weren’t terminated for cause
• Project deliverables (reports, completed work products) proving employment was active

Witness Testimony

Collect contact information for colleagues who can confirm:

• Your employment during relevant periods
• Salaries were delayed/not paid during specific timeframes
• You worked and fulfilled responsibilities during unpaid periods
• You requested payment from management

While witness testimony alone is weaker than documents, it corroborates your claims when combined with other proof.

Organizing Your Evidence File

Create systematic organization:

Timeline Document listing chronologically:

• Each month
• Salary amount owed (per contract)
• Contractual payment due date
• Actual payment date OR “not paid”
• Amount still owed
• Evidence reference numbers

Evidence Folders:

• Folder 1: Employment contract, offer letter, hiring documents
• Folder 2: Bank statements, payslips, payment receipts
• Folder 3: All email and message communications about payment
• Folder 4: Supporting documents (attendance records, work assignments)

One-Page Summary Sheet:

• Total amount owed (breakdown by month)
• Total interest calculated (based on 15-day threshold and applicable bank rates)
• Key evidence items with brief descriptions

Digital and Physical Documentation

Maintain both copies:

• Digital: PDF scans, photograph documents clearly, save emails in multiple locations
• Physical: Original signed contracts, printed bank statements directly from bank, hard copy letters with delivery confirmations

For authenticity:

• Request official bank statements directly from bank (not mobile app screenshots)
• Forward important emails to personal email as backup + screenshots showing full headers
• Screenshot messages with visible dates, phone numbers, clear sender names
• Keep original signed contract versions (notarized copies provide even stronger legal weight)

How Long Does the Labor Dispute Resolution Process Take?

Timeline varies significantly by resolution method: internal complaints require 30 days for employer response, DOLISA investigations span 30-60 days, labor mediation organizes within 5 working days and concludes same-day, while court litigation requires 6-12 months from filing to final judgment.

Legal Timeline Requirements

Vietnamese labor law establishes specific timeframes for each dispute resolution method per the Labor Code 2019, Decree 24/2018/ND-CP on complaint procedures, and Civil Procedure Code to ensure timely resolution.

Method 1: Internal Complaint Timeline

Decree 24/2018/ND-CP Timeframe:

Day 1: Submit written complaint to employer’s HR department, management, or company owner with proof of delivery

Days 2-7: Employer should acknowledge receipt and begin internal review

Days 8-30: Employer’s mandatory response period when they must either:

• Pay outstanding salary immediately (resolving issue)
• Provide specific payment schedule with firm dates/amounts
• Explain legitimate delay reasons with supporting evidence if claiming force majeure
• Dispute claim with counter-evidence and detailed explanation

After Day 31: If no response or unsatisfactory response, proceed to DOLISA complaint immediately under Article 20 of Decree 24/2018/ND-CP

Success Rate: Only approximately 30-40% of employers resolve complaints satisfactorily at this internal stage based on Vietnamese labor dispute statistics. Many ignore complaints or provide empty promises without actual payment.

Method 2: DOLISA Investigation Timeline

Administrative Investigation Process:

Days 1-3: Submit complaint to DOLISA with all supporting documents

Days 4-10: DOLISA reviews complaint, verifies it meets requirements/jurisdiction, assigns labor inspector

Days 11-20: Initial investigation – inspector contacts employer in writing requesting explanations, documents, evidence

Days 21-40: Evidence gathering – inspector may:

• Visit workplace to conduct interviews
• Interview other affected employees (verify violation scope)
• Review employer’s financial records and payroll documentation
• Request additional information from complainant

Days 41-50: Inspector prepares comprehensive investigation report with findings and recommendations

Days 51-60: DOLISA leadership reviews report and issues official decision including:

• Administrative fines: VND 5,000,000 – VND 50,000,000 (if violations confirmed)
• Mandatory payment orders specifying amounts owed
• Compliance timeframe (typically 15 days from decision date)

Days 61-75: Employer compliance period (must make payment or face escalated penalties including potential business license suspension)

Success Rate: Approximately 60-70% success in obtaining salary payment because government authority and administrative fine threats strongly motivate employer compliance.

Method 3: Labor Mediation Timeline

Article 188 Labor Code Requirements:

Day 1: Submit mediation request to district-level labor conciliation agency (Hội đồng hòa giải lao động cấp cơ sở) in employer’s jurisdiction

Days 2-5: Legally required period – mediation session must be organized within 5 working days per Article 188

Day 5-6: Mediation session (typically 1-3 hours total)

• Hour 1: Neutral mediator reviews documents, evidence, legal arguments from both parties
• Hours 2-3: Joint session – both sides present positions, discuss evidence, explain perspectives with mediator facilitating
• Hour 3-4: Mediator proposes settlement terms based on legal requirements, guides toward mutual agreement

Session Conclusion:

SUCCESS: Binding written agreement (biên bản hòa giải thành) signed specifying:

• Payment amount
• Firm payment date (typically within 7-14 days)
• Interest calculation and amount
• Employment continuation or termination terms

FAILURE: Official statement (biên bản hòa giải không thành) issued enabling court lawsuit filing

Days 7-21: If mediation succeeded, employer makes payment per agreed schedule

Success Rate: Approximately 60-70% based on Ministry of Labor statistics (higher for clear-cut violations with strong documentation, lower for genuinely disputed facts).

Method 4: Court Litigation Timeline

Civil Procedure Code Requirements:

Months 1-2: Filing and Initial Review

• Weeks 1-2: Prepare lawsuit documents, gather/organize evidence, possibly consult Vietnamese labor lawyer
• Week 3: File formal complaint with district-level People’s Court registry in employer’s main office jurisdiction
• Weeks 4-8: Court reviews submission for completeness and procedural compliance, may request additional documents

Months 3-5: Pre-Trial Phase

• Court assigns case to specific judge/judicial panel
• Both parties submit evidence and legal arguments per court-mandated deadlines
• Court may request additional information or expert opinions
• Potential settlement discussions facilitated by court

Months 6-8: Trial Preparation

• Court schedules official hearing date (typically 2-4 months from case assignment)
• Witness lists submitted by both parties
• Final evidence exchanges and procedural matters completed

Months 9-10: Trial Phase

• First hearing: both parties present evidence, examine witnesses, make legal arguments (may adjourn if additional evidence needed)
• Possible second hearing if case is complex or disputed facts require extended examination
• Deliberation period: judge/panel considers all evidence and applicable law

Months 11-12: Judgment Stage

• Court issues formal written judgment with detailed legal reasoning and remedy orders
• 15-day appeal period for either party to file appeal to provincial-level People’s Court
• If no appeal filed within 15 days, judgment becomes legally effective and enforceable

If employer doesn’t voluntarily pay within judgment-specified deadline (typically 15-30 days):

Months 13-18: Enforcement Proceedings

• File enforcement request with civil judgment enforcement agency (Ministry of Justice system)
• Agency locates employer assets, bank accounts, property through legal searches
• Asset seizure, bank account freezing, or public auction to satisfy judgment amount

Success Rate: Approximately 70-80% for employees with clear documentation proving employment relationship and salary non-payment. However, actually collecting the money may require additional 3-6 months of enforcement (especially if employers hide assets or lack resources), reducing practical success rate to approximately 60-70% for full collection.

Strategic Timeline Considerations

If You Need Money Quickly:

• Pursue internal complaint + DOLISA investigation simultaneously (Vietnamese law doesn’t prohibit parallel tracks)
• Labor mediation provides fastest potential resolution for employers willing to negotiate in good faith
• Consider negotiating reduced settlement for immediate cash payment rather than waiting months for full recovery

If You Want Maximum Recovery:

• Court litigation allows claiming broadest remedies (unpaid salary, interest, severance, severance interest, partial legal costs)
• Longer timeline worthwhile for larger amounts exceeding VND 50,000,000 where comprehensive judicial remedies justify time investment

If Employer is Financially Distressed:

• Act FAST – file DOLISA complaint immediately without delay
• Postponing action risks employer entering bankruptcy where wage claim gets stuck in lengthy liquidation with uncertain recovery
• Consider accepting partial immediate settlement rather than risking receiving nothing if company completely collapses

FAQ – Common Questions About Late Salary Payments

Can my employer delay my salary due to company financial difficulties?

No. Financial difficulties, cash flow problems, or business losses are NOT legitimate force majeure under Article 97 of the Labor Code. Your employer must pay full salary on time regardless of the company’s financial status.

Legal Principle – Business Risk Allocation:

Vietnamese labor law treats salary payments as non-discretionary legal obligations independent of business profitability or financial condition. The employer bears business risk—employees should not suffer financial harm because the employer’s business faces challenges. Article 94.1 establishes the absolute requirement that “Employers shall directly, fully and punctually pay salaries to their employees” with no exception for financial difficulty or reduced revenue.

What This Means For You:

If your employer claims they “can’t afford” salaries or “need to wait for client payments,” this remains an illegal violation. You can immediately:

• File DOLISA complaints requesting investigation and administrative penalties
• Request labor mediation to obtain binding payment agreement
• Claim interest compensation for delays exceeding 15 days per Article 97

Salary payments are priority debt under Vietnamese law—wages rank among highest-priority obligations employers owe, ahead of most other business debts including bank loans, supplier payments, and general creditors. This priority is enforced in bankruptcy proceedings if the company ultimately fails.

What happens if my employer closes the business without paying my salary?

You can file a lawsuit claiming unpaid wages as a priority creditor in any bankruptcy or liquidation proceedings. Under the Law on Bankruptcy 2014, unpaid employee salaries rank among the highest-priority claims during asset liquidation.

Legal Protection – Priority Creditor Status:

The Law on Bankruptcy establishes clear priority rankings for creditor claims. Unpaid employee salaries are priority debts under Article 25, typically paid before most other creditors including secured bank lenders and commercial suppliers. This legal priority protects workers whose livelihoods depend directly on salary payments.

Action Steps for Business Closure:

1. File immediate DOLISA complaint to officially document the violation before company fully dissolves or transfers assets (creates official government record)
2. Submit claim to bankruptcy court/liquidation administrator with comprehensive evidence:
   • Employment contract
   • Bank statements showing payment history
   • Calculation of amounts owed with interest
   • Proof of work performed
3. Register as priority creditor ensuring claim is recognized in asset distribution ahead of lower-priority creditors
4. Attend creditor meetings if scheduled – consider hiring bankruptcy lawyer to represent you throughout complex liquidation

Realistic Recovery Expectations:

Even with statutory priority status, recovering wages from bankrupt companies can be difficult. You may receive only partial payment or nothing if insufficient assets remain after higher-priority claims (secured creditors, tax obligations). This harsh reality underscores why acting fast when you first notice salary delays is critical, before financial situation deteriorates beyond recovery and assets are dissipated.

Can I stop working if my salary is delayed?

Yes, but only after specific legal thresholds are met. You have three legal options under the Labor Code 2019 depending on your circumstances.

Option 1: Continue Working While Pursuing Complaints

File internal complaints, escalate to DOLISA, request mediation while continuing to work normally. This approach:

• Maintains income stream from any future payments
• Strengthens legal position by demonstrating you fulfilled obligations even while employer violated theirs
• Courts/mediators view favorably employees who continued working in good faith despite non-payment

Option 2: Unilateral Contract Termination After 30 Days

Article 35.2(c) grants explicit right to unilaterally terminate employment contract immediately without prior notice if employer fails to pay salary beyond the 30-day maximum extension (applies only to genuine force majeure verified with evidence).

After proper legal termination following Article 35 procedures, you can claim:

• Unpaid salary for all periods worked + interest (from day 15 of each delay)
• Severance allowance if you meet eligibility requirements based on service length (Article 46)
• Interest on delayed severance if employer fails to pay within required 14-day deadline

Option 3: Work Suspension During Dispute Resolution

Once labor mediation or court litigation formally begins, you may negotiate work suspension agreement with employer where you don’t perform work but employment contract remains technically active during resolution proceedings. This protects both parties’ interests while dispute is adjudicated and prevents employer claims of abandonment.

Critical Caution:

Simply stopping work before 30-day threshold expires or without following proper Article 35 termination procedures could expose you to employer claims of contract breach or job abandonment. Always follow formal legal process:

1. File written complaints documenting violation
2. Preserve evidence of non-payment and resolution attempts
3. Terminate only after meeting Article 35’s specific legal requirements and giving proper notice based on employer’s salary payment failure

Is there a statute of limitations for claiming unpaid salary?

Yes, strict statutory time limits apply. You must act within these deadlines or risk permanently losing your right to legal remedies regardless of claim merit.

Legal Deadlines – Article 188 Labor Code:

Two critical timeframes begin running from date you discovered the salary payment violation:

• 6 months to request labor mediation
• 1 year to file lawsuit in People’s Court

These are firm statutory deadlines established by the National Assembly—missing them results in claim rejection as time-barred regardless of how strong your evidence is.

Discovery Date Definition:

“Discovery date” is legally defined as when you knew or reasonably should have known about the violation. For late salary payments, this is typically the contractual payment due date when payment should have occurred but didn’t.

Example: If your December 2025 salary was contractually due January 5, 2026 but not paid:

• 6-month mediation deadline: July 5, 2026
• 1-year court filing deadline: January 5, 2027

Preserving Your Legal Rights:

Don’t delay action even if unsure whether to pursue legal action or attempting informal negotiations. File at least initial written complaint with DOLISA within 30 days of non-payment to officially document violation and create government record preserving legal rights.

You can always escalate to mediation/court later if needed, but you cannot extend or revive statutory deadlines once they expire—courts and mediation agencies have no discretion to accept late filings (absolute statutory time limits mandated by National Assembly).

Do I need a lawyer for labor dispute resolution?

A lawyer is not legally required for labor mediation (free and designed for independent employee navigation), but hiring a Vietnamese labor lawyer is strongly recommended for court litigation, especially when claim amounts exceed VND 50,000,000 or when employer disputes evidence or raises complex legal defenses.

When a Lawyer Probably Isn’t Necessary:

• Internal complaint stage: Straightforward written request to employer citing Article 94 and Article 97
• DOLISA complaints: Government labor inspectors guide process and conduct independent investigations
• Labor mediation: Simple cases with clear documentary evidence where neutral mediator explains procedures and facilitates discussion

Self-representation saves legal costs for these stages.

When Legal Representation Significantly Helps:

• Court litigation: Legal expertise essential for navigating Civil Procedure Code, evidence rules, and judicial system complexities
• Complex cases: Disputed facts where employer denies employment relationship/salary agreement, or raises technical legal defenses requiring sophisticated arguments
• Large claims: Recovering VND 50,000,000+ in unpaid wages – lawyer fees (typically 10-20% of recovered amount) are worthwhile investments given stakes
• Foreign workers: Limited Vietnamese language proficiency – lawyers represent you at all proceedings, handle translations, communicate effectively with courts/agencies
• Judgment enforcement: Court ruled in your favor but employer refuses voluntary payment – lawyers know enforcement procedures, can expedite asset location, seizure processes, and auctions

Cost Considerations:

• Many labor lawyers offer free initial consultations for foreign workers (assess case strength, explain options, provide preliminary advice without obligation)
• Some work on contingency basis accepting percentage of recovered amounts (typically 15-25%) – meaning no upfront fees, you pay only if you successfully recover money
• For straightforward cases with overwhelming documentary evidence (clear contract, bank statements showing non-payment), self-representation through free mediation is often sufficient and cost-effective
• For complex litigation with significant amounts or disputed facts, investment in professional representation usually pays off through substantially higher success rates, faster resolution, and more favorable settlement terms

The 2019 Labor Code provides comprehensive legal protections for all workers in Vietnam—Vietnamese and foreign employees alike—facing late salary payments. You have enforceable rights to:

• Timely payment (Article 94)
• Interest compensation after 15 days of delay (Article 97)
• Multiple escalation paths from internal complaints through government investigation to court litigation (Articles 188-190, Decree 24/2018/ND-CP)

Employers who violate salary payment obligations face substantial penalties ranging from VND 5,000,000 to VND 50,000,000 in administrative fines per Article 17.2 of Decree 12/2022/ND-CP, plus mandatory repayment with interest at rates that significantly increase financial liability. The Vietnamese government takes salary violations seriously—DOLISA actively investigates complaints and imposes penalties to protect employee welfare.

The key to successfully protecting your rights:

1. Document everything from employment beginning (contracts, payment records, all communications)
2. Act within legal timeframes (6 months for mediation, 1 year for court litigation from discovering violation)
3. Follow proper complaint procedures step by step (internal resolution → government intervention → judicial remedy)

Even if you lack written employment contract or complete payment records, Vietnam’s labor law framework is designed to protect employees—courts and mediators often rule in favor of workers when available evidence reasonably demonstrates employment relationships and payment failures.

Don’t let uncertainty or fear prevent you from claiming your rightfully earned wages. Whether you’re a teacher, education professional, or working in any other field in Vietnam, your salary is legally protected regardless of nationality under Article 3 of the Labor Code.

Protect Your Employment Rights in Vietnam

Understanding your salary payment rights is just one aspect of working legally in Vietnam. For comprehensive guidance on all employment-related topics—from work permits and visa requirements to contract terms, overtime regulations, and labor dispute procedures—explore our complete EMPLOYMENT RIGHTS & CONTRACTS resource library.

Need immediate help with a salary dispute? Consider consulting with a Vietnamese labor lawyer who specializes in foreign worker cases. Many offer free initial consultations to assess your situation and explain legal options. Document all evidence carefully, act within legal timeframes, and remember that Vietnamese law protects your rights equally as a foreign employee working in Vietnam.