In many companies, especially those operating on a project-based model, performance-based remuneration, bonuses, or commissions are commonly used to motivate productivity and morale. However, when disputes arise, a key question emerges: can an employee reclaim bonuses from projects they contributed to if those bonuses were never issued through official documentation?

Although this issue seems straightforward, it becomes complex in court. Let’s explore the legal aspects with DEDICA to help businesses and employees understand clearly and adopt effective risk prevention measures.

Legal Foundations: Bonus and Project Remuneration

Under Article 104 of Vietnam's Labour Code 2019, a bonus is a payment given by the employer based on business results and the employee’s performance. The bonus must be clearly stated in the employment contract, collective labour agreement, or a bonus policy decided and publicly announced at the workplace.

This shows that bonuses are at the discretion of the employer. Without clear basis of entitlement, the employee cannot arbitrarily demand or file a lawsuit.

When Can an Employee Claim Project-Related Bonuses?

Employees only have the right to request bonus or project remuneration if one of the following conditions is met:

Valid approval decision: This is crucial. Payments must be approved in writing by the board of members or authorised person, specifying recipient, content, and amount.
Effective bonus policy: If the company issues a salary–bonus policy with clear thresholds or percentage rates per role/project, and the employee meets them, it may serve as a basis for payment.
Proper documentation: Employees need to provide clear evidence—approved emails, KPI sheets, stamped approval decisions, salary records or revenue allocation schedules defining the exact bonus amount.

Without these elements, courts are unlikely to recognise and compel payment.

Important Notes When Implementing Project Bonus Mechanisms

DEDICA advises both employers and employees to note:

Put all bonus agreements in writing
Verbal or email agreements without official confirmation are risky. Companies should issue official documents detailing criteria, calculation methods, and payment timing. Employees should request internal notices or approval decisions when entitled.
Do not use uncertified copies as evidence
In disputes, courts only accept documents with legal validity—originals, certified copies, or company-verified digital files. Unsigned spreadsheets or screenshots lack evidentiary value.
Understand the nature of “bonus” vs. salary
Unlike salary, bonuses rely entirely on internal policy and employer decision. Even if an employee contributes significantly, without formal approval, entitlement can’t be assumed.

Can You Immediately Quit if Salary or Bonus Is Delayed?

According to Article 35 of the Labour Code 2019, employees can unilaterally terminate the contract if wages are delayed for 15 days or more, or if subjected to mistreatment or coercion. However, termination must follow proper procedures—appropriate notice periods (3 to 45 days depending on contract type).

Crucially, project bonuses don’t count as “salary” unless recorded in the contract or policy. So non-payment of bonuses alone isn’t a legal cause for immediate termination. Quitting improperly may be deemed unlawful, requiring the employee to compensate the employer.

What Should Employers Do to Prevent Risks?

Based on similar disputes DEDICA has handled, we recommend companies:

Develop and publicly release salary and project bonus policies.
Ensure every bonus decision is clearly approved by leadership or the board.
Avoid verbal “promises” without documentation; they often lead to disputes.
When terminating employees, gather sufficient evidence of violations and follow proper legal procedures.

Conclusion

DEDICA's recent case shows that without documented approval, even seemingly secured bonus amounts can evaporate. It’s a cautionary tale for both employees and employers: establish transparent and legally sound bonus mechanisms.

If you're struggling to reclaim rightful compensation or need help setting up a fair and safe remuneration policy for your company, DEDICA is ready to support you with comprehensive, effective legal solutions tailored to your situation.

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