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Authorization To Receive Wages On Behalf Of Employees In Vietnam In 2022 – Employee Benefits & Compensation

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Wages have always been a particularly sensitive issue in
society. On August 16, 2022, Chairman of the Finance and Budget
Committee Nguyen Phu Cuong asked a question during a discussion
session of the National Assembly Standing Committee that “In
Vietnam, husband and wife have joint accounts, so if a wife takes
her husband’s ATM card, is it considered domestic
violence?”. This issue immediately caused a stir in Vietnamese
society with many conflicting opinions. The essence of the question
revolves around domestic violence, but from another perspective,
this can be understood as an authorization for the wife to receive
wages on behalf of the husband. So, what is the regulation on
authorization to receive wages on behalf of employees in Vietnam in
2022?

Article 90 of the Labor Code 2019 stipulates that wages are:

  1. Wage is the amount of money that the employer pays the employee
    under an agreement to perform the job, including the salary
    according to the job or title, salary allowances and other
    supplements.

  2. The salary according to the job or title must not be lower than
    the minimum wage.

  3. Employers must ensure equal wages, regardless of gender, for
    employees doing work of equal value.

Authorization to receive salary instead

If the employee for some reason cannot receive the salary (due
to serving a prison sentence by the Court at all levels, …) or
does not want to receive the salary directly, they can authorize
another party to get the money they deserve instead.

The parties authorized to receive wages on behalf of the
employees are usually family members, close friends of the
employees.

This authorization is clearly stated in Clause 1, Article 94 of
the Labor Code 2019. Specifically:

1. Employers must pay wages directly, in full and on time to
employees. In case the employee cannot receive the salary directly,
the employer can pay the salary to the person legally authorized by
the employee.

Accordingly, in case the employee cannot or does not want to
receive the salary directly, the employer can pay the salary to the
person legally authorized by the employee.

However, employees should further note that although the law
allows authorization to receive wages, it does not specifically
provide for authorization to receive all or part of wages.

Accordingly, the application of which of the two authorization
methods is completely dependent on the authorizer and the
authorized.

To authorize, the employee needs to prepare a power of attorney
to receive salary (or letter of authorization to receive wages on
behalf of) in accordance with the form of an administrative
document in accordance with the law, clearly stating the content of
the authorization, powers of the power of attorney as well as
details of the authorizer and the authorized party.

Originally published September 8, 2022

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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