Calculating employee leave entitlements in Vietnam: A practical guide for employers

Vietnam’s leave policy reflects the country’s emphasis on the protection of workers’ rights and interests, and also reflects its efforts to balance corporate development and employee well-being. According to the latest Vietnamese labor law, employees are entitled to various types of paid leave, including annual leave, sick leave, marriage leave, bereavement leave, maternity leave, etc. These policies not only protect the basic rights and interests of employees, but also provide a clear legal framework for the company’s human resources management.

The leave system is crucial to business management, as it directly affects the company’s operational efficiency, employee satisfaction and legal compliance. Reasonable vacation arrangements can help employees restore their energy, improve work efficiency, and reduce professional burnout. At the same time, it is also an important factor for enterprises to attract and retain talents. From a legal perspective, strict compliance with leave regulations can avoid labor disputes and reduce the company’s legal risks. In addition, scientific leave management can optimize the allocation of human resources and ensure that enterprises maintain normal production and operation activities while protecting the rights and interests of employees.

Therefore, in-depth understanding and effective implementation of Vietnam’s vacation policy is not only a need for compliance operations, but also an important strategic measure to enhance corporate competitiveness. For companies operating in Vietnam or planning to enter the Vietnamese market, establishing a leave system that complies with legal requirements and meets the actual needs of the company will become one of the core tasks of human resources management.

Annual leave entitlement

Vietnam’s annual leave system is an important part of the labor law that protects employees’ rights and interests. Its design reflects full consideration of employees’ working years and the nature of their work. According to Vietnam’s latest labor law, all full-time employees who have worked for the company for 12 months are entitled to paid annual leave. The basic annual leave quota is 12 days per year, which applies to most employees working under normal conditions. However, the number of annual leave days will increase accordingly as the employee’s working years increase, reflecting additional benefits for senior employees. Specifically, for every five years of service, an employee’s annual leave will be increased by one day.

The law provides for more basic annual leave days for employees who perform strenuous, hazardous or hazardous work. Employees in these special positions can enjoy 14 days of paid annual leave each year. For employees engaged in particularly heavy physical labor, particularly dangerous or harmful work, their basic annual leave is higher, reaching 16 days per year. This provision fully reflects the additional protection for employees in high-risk positions.

It is worth noting that age is also a factor affecting the number of annual leave days. For minor workers under 18 years old or disabled employees, regardless of the nature of their work, they are entitled to at least 14 days of paid annual leave every year, which reflects the law’s extra care for special groups.

In terms of the use of annual leave, the law encourages employees to make full use of their leave rights. Employees can choose to use their entire annual leave at once or in multiple installments. However, the law requires that there should be at least one consecutive leave of not less than 5 days to ensure that employees have enough time to get adequate rest. Annual leave that is not used in the current year can usually be carried forward to the next year. However, in order to prevent the backlog of annual leave, many companies will establish policies to encourage employees to take timely leave or use carryover annual leave within a specific period.

Regarding the treatment of untaken annual leave, Vietnamese law stipulates that if an employee is unable to take annual leave due to work reasons, the employer shall compensate the employee for the untaken days at 300% of the employee’s daily wage. This regulation aims to protect employees’ vacation rights and also encourages employers to arrange work reasonably to give employees the opportunity to take adequate rest.

Sick leave system

Vietnam’s sick leave system regulations take into account both the health needs of employees and the operational needs of the company. According to Vietnamese labor law, the sick leave period and salary calculation method mainly depend on the employee’s social insurance payment period and the nature of the job.

For employees engaged in general working conditions, the sick leave period is as follows: those who have paid social insurance for less than 15 years can enjoy up to 30 days of sick leave per year; those who have paid for social insurance for 15 to less than 30 years can enjoy up to 40 days; those who have paid for 30 years or more Yes, you can enjoy it for up to 60 days. For employees engaged in heavy physical labor, dangerous or harmful work, considering the nature of their work, the number of sick leave days will be increased accordingly: those who have paid social security for less than 15 years can enjoy up to 40 days; those who have paid social security for 15 to less than 30 years can enjoy Up to 50 days; those who have paid for 30 years or more can enjoy up to 70 days.

The method of calculating wages during sick leave is also clearly defined. Under normal circumstances, employees can receive sick leave wages from the social insurance fund equivalent to 75% of their social insurance contribution wage base during sick leave. This benefit is calculated from the first day of sick leave until the end of the sick leave or until the legal maximum number of sick leave days is reached. It is worth noting that employees may be entitled to a higher proportion of sick pay for illness or injury arising from work-related reasons.

Vietnam’s labor law has special provisions for long-term sick leave. If an employee’s sick leave exceeds the maximum period specified above, but a doctor certifies that the employee’s ability to work can be restored after continued treatment, the company can negotiate with the employee to extend the sick leave. In this case, sick leave wages are still paid by the social insurance fund, but the specific number of days of the extension period needs to be determined based on the actual situation. If the employee’s condition cannot improve within a reasonable period, the company may consider terminating the labor contract, but must strictly abide by relevant legal procedures, including advance notice and payment of appropriate compensation.

In addition, Vietnamese law also provides for sick leave benefits under some special circumstances. For example, employees may be entitled to a longer period of sick leave and a higher proportion of sick pay for certain illnesses that require long-term treatment (such as cancer, mental illness, etc.). At the same time, there are also special sick leave regulations for female employees who need to take leave during pregnancy due to miscarriage, post-abortion recovery, or birth control measures.

When implementing the sick leave system, enterprises need to pay attention to the following points: establish a clear sick leave application and approval process, and require employees to provide necessary medical certificates; accurately record employees’ sick leave days and social security payment status to ensure correct calculation of sick leave wages; for Employees who are on long-term sick leave must maintain communication to understand their recovery progress and discuss return arrangements in a timely manner; attention must be paid to protecting employee privacy and keeping sensitive information such as the reasons for sick leave strictly confidential.

Marriage Leave and Bereavement Leave

Vietnam’s marriage leave and bereavement leave systems reflect humane care for employees. These regulations not only protect the rights and interests of employees at important life moments, but also provide clear management guidance for enterprises.

First, let’s look at the marriage leave regulations. According to Vietnamese labor law, employees are entitled to 3 days of paid wedding leave when they get married. This provision applies to all full-time employees regardless of length of service or position. The purpose of wedding leave is to allow employees enough time to prepare for the wedding and celebrate this important life moment. It is worth noting that these 3 days of wedding leave are additional paid leave and are not included in annual leave or other types of leave.

Regarding bereavement leave, Vietnamese law stipulates different days of leave based on the family relationship between the deceased and the employee. When an employee’s immediate family member (including parents, spouse, children) dies, the employee can enjoy 3 days of paid bereavement leave. Employees are entitled to one day of paid bereavement leave in the event of the death of a grandparent, spouse, parent or sibling. This differentiated provision reflects recognition of the importance of different kinship relationships, while also taking into account the time required by employees to deal with the bereavement.

Regarding the calculation of wages during wedding and funeral leave, Vietnamese law stipulates that employees are entitled to full wages. This means that during marriage or bereavement leave, an employee’s salary should be calculated and paid based on normal working days, including basic salary and fixed allowances. This provision ensures that employees do not suffer financial losses from taking time off during these special times.

For employers, reasonable arrangement of wedding and funeral leave is not only a legal obligation, but also an important way to reflect humanistic care. In actual operation, many companies will develop detailed application and approval processes for wedding and funeral leave to ensure smooth leave management. Some companies will even provide additional holidays or benefits on top of statutory holidays, such as wedding gifts or consolation payments, to further demonstrate their support for employees.

It should be noted that applications for wedding and funeral leave usually require employees to provide relevant supporting documents, such as marriage certificates or death certificates. These requirements are intended to prevent holiday abuse and are necessary for companies to manage compliance.

For multinational companies, it is particularly important to understand Vietnam’s wedding and funeral leave regulations. They may need to adjust their globally unified HR policies to suit Vietnam’s legal requirements and cultural practices. For example, in some cultures, funeral ceremonies may take longer and businesses may consider offering additional unpaid leave options on top of statutory holidays.

Maternity leave and paternity leave

Vietnam’s maternity leave and paternity leave system reflects the country’s protection of the rights and interests of female employees and support for male employees’ participation in childcare. According to the latest Vietnamese labor law, female employees enjoy full maternity leave rights, while male employees are also given the right to paternity leave, which is not only beneficial to maternal and child health, but also promotes family harmony and gender equality.

For female employees, the standard maternity leave is 6 months. This provision applies to all female employees regardless of their length of service or type of contract. It is worth noting that female employees can choose to take maternity leave 45 days before the due date, but no later than 15 days before the due date. In special circumstances, such as multiple births, maternity leave may be extended by an additional 30 days for each additional child. If you have a miscarriage before the seventh month of pregnancy, you can enjoy 30 days of maternity leave; if you have a miscarriage of more than 7 months of pregnancy, you can enjoy 50 days of maternity leave.

Paternity leave for male employees is also clearly stipulated by law. According to the latest regulations, male employees can enjoy 5 to 14 days of paid paternity leave when their wife gives birth. The specific number of days depends on the mode of delivery and the number of fetuses: a normal delivery of a single child can enjoy 5 days of paternity leave; a caesarean section or premature birth can enjoy 7 days; a birth of twins can enjoy 10 days, and a birth of triplets and above can enjoy 14 days of paternity leave. maternity leave. This provision fully reflects the encouragement and support for men to participate in child care.

In terms of social insurance benefits during maternity leave, Vietnamese law provides quite generous protection. During maternity leave, female employees can receive a maternity leave allowance equivalent to 100% of their average monthly salary from the social insurance fund. This benefit is calculated from the first day of maternity leave until the end of maternity leave. It is worth noting that even if employees have paid social insurance for less than 6 months, they are still entitled to enjoy this treatment, but the amount of the allowance will be adjusted.

In addition to basic maternity benefits, female employees may also receive additional benefits. For example, if an employee’s social security contribution base in the 12 months before the start of maternity leave was above the minimum wage, she may be eligible for a one-time maternity benefit. In addition, employees who give birth to twins or multiple births will receive an additional one-time benefit for each additional child.

After maternity leave, female employees have the right to return to their original jobs. If the original position no longer exists, the employer must arrange for other suitable work and the salary shall not be lower than the level before maternity leave. In addition, during the first six months after the end of maternity leave, female employees have the right to reduce their working hours by one hour but still receive full wages. This provision is intended to make it easier for mothers to take care of their babies.

Paternity leave pay for male employees is usually paid directly by the employer in the amount of their normal working wages. Some progressive companies may even offer paternity leave benefits that are above statutory standards to attract and retain talent.

Other special holidays

In addition to providing basic annual leave, sick leave, wedding and funeral leave and maternity leave, Vietnam’s labor law also provides employees with a variety of special leaves to meet the needs of different life and work scenarios. The establishment of these special holidays reflects the comprehensiveness and humaneness of Vietnam’s labor laws, aiming to balance employees’ personal development, social responsibilities and work obligations.

First of all, personal leave is one of the most common special holidays. Although the Vietnamese labor law does not clearly stipulate the number of days of personal leave, it is usually decided by the employer and the employee based on specific circumstances. Personal leave is typically used to handle personal emergencies, family matters, or other personal matters that cannot be resolved outside of work hours. Most companies will stipulate the application procedures and approval conditions for personal leave in internal policies. Wage payment during personal leave is usually determined by company policy. Some companies provide paid personal leave, while others have an unpaid personal leave policy.

Study and training leave is another important type of special leave designed to support an employee’s career development and skills improvement. According to Vietnamese labor law, if employees take exams organized by nationally recognized educational institutions, employers should grant corresponding leave. For example, employees taking the high school graduation exam can get 3 days off, including the exam day. In addition, many companies will provide employees with additional study and training leave to encourage employees to participate in work-related training courses or obtain professional qualification certificates. Wage payment policies for this type of leave vary from company to company, with some offering full or partial pay.

Public service leave is designed to allow employees to fulfill their civic duties. This includes activities such as joining the military, participating in elections, and testifying in court. For example, when taking part in local council elections or parliamentary elections, employees are entitled to the time off necessary to vote. Employees serving in the military enjoy special protections, and their employer must retain their jobs until the end of their service. Such leave is usually paid to ensure that employees do not suffer financial loss from fulfilling their civic duties.

In addition, Vietnamese law provides for some other types of special holidays:

  • Breastfeeding leave: Mothers are entitled to 60 minutes of paid breastfeeding time every day until their child reaches 12 months of age.
  • Leave for miscarriage, post-abortion recovery or birth control measures: Female employees can take leave ranging from 10 to 50 days based on medical advice.
  • Adoption leave: Employees who adopt a baby under 5 months old can enjoy the same leave as maternity leave.
  • Child bereavement leave: When employees unfortunately lose a child, they can receive additional paid leave, usually 3-5 days.
  • Blood Donation Leave: Employees are typically given an additional paid day off after donating blood.
  • Work-related injury leave: Employees injured on the job are entitled to sick leave with full pay until full recovery or until they are deemed permanently disabled.
  • Year-end leave: Many companies offer additional paid time off during the Lunar New Year period, which is not required by law but has become common practice.

When implementing these special holiday policies, companies need to pay attention to the following points: First, formulate clear internal regulations to detail the application conditions, approval processes and salary calculation methods for various special holidays. Second, make sure all employees understand the policies, either through an employee handbook or training. Thirdly, consistency and fairness should be maintained when approving special holidays and avoid discriminatory treatment. Finally, regularly review and update the holiday policy to ensure compliance with the latest legal requirements and actual business needs.

Leave application, approval and management

Vacation application, approval and management in Vietnam are an important link, directly affecting the daily operations of the company and the protection of employees’ rights and interests. A complete leave management system can not only ensure legal compliance, but also improve the company’s operational efficiency and employee satisfaction.

The standard leave request process typically begins with the employee submitting a written request. This application should include the specific dates, duration and reason for the leave. For foreseeable leave, such as annual leave, it is recommended that employees submit applications at least one week in advance; for emergencies, such as sick leave, employees should notify their immediate supervisor as soon as possible and submit a written application after returning to work. After receiving the application, the direct supervisor needs to consider factors such as work arrangements and team manpower status, and make an approval within a reasonable time (usually no more than 3 working days).

To ensure fairness and efficiency, companies should develop clear approval standards and processes. For example, you can stipulate that different levels of leave require approval from different levels of managers: leave of less than 3 days needs to be approved by the direct supervisor, leave of 3-7 days needs to be approved by the department manager, and leave of more than 7 days needs to be approved by the human resources department or higher. level managers involved in decision-making. At the same time, companies should establish a replacement mechanism to ensure that employees’ work can be properly arranged during vacations.

During the approval process, managers need to balance multiple factors. The first is legal compliance to ensure that employees’ vacation rights are fully protected. The second is work needs to avoid affecting important projects or business progress due to employee vacations. Again, fairness and reasonable distribution of vacation opportunities within the team. Finally, there is employee well-being, focusing on employees’ physical and mental health and work-life balance.

The application of electronic leave management system has greatly improved the efficiency and accuracy of leave management. Such systems typically include the following features:

  • Online application: Employees can submit leave applications through the system at any time, and the system automatically records the application time and details.
  • Automatic calculation: The system can calculate employees’ available vacation balance in real time to avoid manual calculation errors.
  • Approval process: According to the preset approval process, the system automatically forwards the application to the corresponding approver and sends a reminder.
  • Data statistics: The system can generate various reports, such as department leave statistics, personal leave records, etc., to facilitate management decision-making.
  • Integration function: Integrate with attendance system and payroll system to ensure data consistency and accuracy.

When implementing electronic systems, companies need to pay attention to the following points: First, they must provide sufficient training to ensure that all employees and managers can use the system proficiently. Secondly, clear usage guidelines should be developed, including how to submit an application, how to check the approval progress, etc. Thirdly, it is necessary to regularly check the operating status of the system and solve technical problems and user feedback in a timely manner.

In addition, even if an electronic system is adopted, companies still need to retain a certain amount of manual processing capabilities to deal with system failures or special circumstances. For example, emergency contacts can be set up to handle emergencies that cannot be covered by the system.

Businesses should regularly review and update leave management policies and systems. This includes adjusting policies in response to legal changes, optimizing system functionality based on employee feedback, and analyzing leave data to identify potential issues and improvement opportunities . By establishing a complete leave application, approval and management system, companies can improve operational efficiency and employee satisfaction while ensuring compliance, thereby maintaining a competitive advantage in the Vietnamese market.

Calculation of leave entitlements under special circumstances

The calculation of leave entitlements in special circumstances is an area that requires special attention, particularly for employees on probation, part-time employees and where statutory holidays are involved. The handling of these special situations is not only related to employees’ rights and interests, but also directly affects the company’s human resources management and compliance.

First, let’s look at the calculation of leave for probationary employees. According to Vietnamese labor law, the probation period cannot exceed a maximum of 60 days (can be extended to 180 days for senior management positions). During the probation period, employees also have the right to take vacations, but the calculation method is slightly different. Annual leave for probationary employees is calculated on a pro-rata basis, that is, based on actual working hours. For example, if an employee’s probation period is 2 months, then the number of annual leave days during this period is: (12 days ÷ 12 months) × 2 months = 2 days. It is worth noting that although the salary of probationary employees may be lower than that of regular employees, their vacation pay should be calculated according to the probationary salary standard.

For part-time employees, the calculation of leave entitlements is more complex. Vietnamese labor law stipulates that for employees who work less than normal working hours, their vacation entitlements should be calculated in proportion to the actual working hours. For example, if an employee works 20 hours per week (normal working hours are 40 hours per week), their annual leave days will be half that of a full-time employee. Likewise, other types of leave (such as sick leave, marriage leave, etc.) should also be calculated according to this ratio. It is important that employers clearly stipulate the working hours and leave entitlements of part-time employees in their employment contracts to avoid potential disputes.

The relationship between statutory holidays and time off is another aspect that requires careful consideration. Vietnam has multiple statutory holidays every year, including New Year’s Day, Spring Festival, Victory Day, etc. If an employee’s leave period happens to include statutory holidays, these holidays shall not be counted towards the number of leave days. In other words, employees should be compensated additionally for statutory holidays. For example, if an employee applies for 5 days of annual leave, and this period includes a statutory holiday, then the actual number of annual leave days deducted should be 4 days, and the actual rest time the employee receives is 6 days.

In addition, if a legal holiday falls on a weekend, the next working day will usually be considered a compensatory day off. In this case, if the employee’s vacation includes this compensatory day, it shall not be counted as vacation days. This provision ensures that employees will not lose their vacation rights due to special arrangements for holidays.

Regarding overtime and compensatory leave, Vietnamese law allows enterprises to choose to pay overtime wages or arrange compensatory leave based on actual conditions. If compensatory time off is chosen, the compensatory time off should usually be more than the actual overtime hours worked. For example, if you work 8 hours of overtime on the weekend, you may receive 1.5 days of compensatory leave. These compensatory time off should not be confused with annual leave and should be recorded and managed separately.

In practice, companies need to establish clear policies and systems to deal with these special situations. This includes:

  • Clearly explain in the employee handbook how leave is calculated under various special circumstances.
  • Train HR and line managers to ensure they understand and implement these policies correctly.
  • Use professional human resources management software to automatically calculate the leave entitlements of different types of employees and take into account the impact of legal holidays.
  • Regularly review leave records to ensure all special circumstances are handled correctly.
  • Encourage employees to proactively understand their leave rights and provide channels for them to check and confirm their leave balance.

Compliance, Risk management and future trends

In Vietnam’s labor environment, compliance and risk management play a crucial role in the implementation of leave policies. Businesses that fail to strictly comply with leave-related regulations may face serious legal and financial consequences. According to Vietnam’s labor law, companies that violate leave regulations may be fined, required to compensate employees, or even face suspension of operations for rectification. For example, refusing to grant statutory holidays to employees or failing to pay holiday pay as required may result in fines of up to tens of millions of VND. More seriously, continued violations can damage a company’s reputation, impact employee relations and talent attraction.

When dealing with leave-related disputes, Vietnamese law encourages settlement through negotiation. If negotiations fail, arbitration can be conducted through a labor mediation committee or court. To avoid escalation of disputes, companies should establish a clear internal grievance mechanism and respond promptly to employees’ leave-related complaints. At the same time, keeping detailed leave records and related documentation is also key to dealing with potential disputes.

Developing a compliant leave policy requires companies to fully consider legal requirements and the actual situation of the company. It is recommended that companies take the following measures: First, regularly update leave policies to ensure they are consistent with the latest regulations. Secondly, clearly stipulate the application procedures, approval standards and salary calculation methods for various types of leave. Thirdly, establish a sound leave management system to accurately record and track employees’ leave status. Finally, provide regular training to management and HR to ensure they fully understand and correctly implement the leave policy.

Balancing business needs with employee rights is a core challenge in leave management. Companies need to ensure that business operations are not affected while protecting employees’ vacation rights. This can be achieved in the following ways: implementing flexible leave arrangements, such as allowing employees to use annual leave in sections; establishing a complete work handover mechanism to ensure that employees’ work during vacation is properly handled; encouraging employees to plan vacations in advance to facilitate the company’s human resources deployment ; Consider adopting a rotation system, especially during busy business periods, to ensure that key positions are always manned.

Looking to the future, Vietnam’s vacation policy is expected to develop in a more flexible and humane direction. Possible trends include:

  • Increase the number of paid vacation days, especially annual leave, to bring it closer to the levels of other countries in the region.
  • Introduce more types of special leave, such as parental leave, volunteer leave, etc., to adapt to the needs of modern society.
  • Encourage flexible work arrangements, such as remote working and flextime, which may impact the traditional concept of time off.
  • Strengthen the protection of vacation rights for special groups (such as the disabled and patients with chronic diseases).
  • Promote the in-depth integration of leave rights and employee benefits, such as converting unused annual leave into other benefits.
  • Increase penalties for violations of leave regulations and improve the supervision mechanism.

In the face of these potential changes, companies need to remain vigilant and adjust policies in a timely manner. It is recommended that enterprises actively participate in relevant policy discussions, pay attention to legal trends, and, if conditions permit, proactively adopt vacation policies that exceed the minimum legal requirements to enhance competitive advantages.

Generally speaking, in the Vietnamese market, vacation management is not only a need for legal compliance, but also a reflection of corporate management level and corporate culture. Through scientific, reasonable and humane vacation policies, companies can not only avoid legal risks, but also improve employee satisfaction and loyalty, thereby standing out in the fierce market competition.

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