What Should Foreigners Do When a Company in Vietnam Owes Them Wages?
Being owed wages by a company for a prolonged period is a constant concern for many employees, especially in business environments that lack transparency or are experiencing financial difficulties. However, not everyone understands what rights they have and how the law protects them. This section will provide a solid legal foundation to help you clearly understand your right to claim unpaid wages and the key regulations to be aware of when preparing to protect your interests.
Legal provisions on salary payments to employees
According to the 2019 Labor Code, employers are obligated to fully and punctually pay wages to employees as agreed in the labor contract. Article 94 clearly stipulates that wages must be paid directly, fully, and on time. If payment is delayed by 15 days or more, employees have the right to request the company to compensate an amount corresponding to the number of delayed days, based on the legally prescribed interest rate.
Additionally, Article 95 states that the employer must inform the reason for the delay in payment and may not delay for more than 30 days. If violations are committed repeatedly, this may be considered a legal basis for employees to unilaterally terminate the labor contract and request compensation.
In cases where the company fails to pay wages, employees can file a lawsuit in court, but must comply with the legal procedure starting with labor conciliation as prescribed.
Labor conciliation – mandatory procedure before filing a wage claim lawsuit
According to Article 188 of the Labor Code, for individual wage disputes, employees are required to carry out the conciliation procedure at the district-level labor conciliation agency before filing a lawsuit in court. This step encourages mutual negotiation and helps reduce pressure on the judicial system.
The time limit for requesting conciliation is 6 months from the date the company is found to have violated its wage payment obligation. The conciliation agency must organize the session within 5 working days. If conciliation fails or cannot be organized in time, the employee is entitled to file a lawsuit in a competent court.
Lawsuit procedure and judgment enforcement in wage debt cases
When conciliation fails and the company continues to delay, employees need a clear strategy to bring the case to court and enforce the judgment afterward. Although the litigation process is not complicated, it requires careful preparation of documents, evidence, and enforcement plans in the event of a successful claim. In this section, we provide a step-by-step guide to help you understand the legal path to reclaim the wages you rightfully deserve.
How to prepare a lawsuit file for wage claim disputes
To ensure that the court accepts the case and to protect your rights, employees need to prepare complete documentation and evidence proving the employment relationship and unfulfilled obligations. Specifically:
Labor contract and its appendices (if any)
Evidence of work: time sheets, work assignments, work emails
Payroll records, bank statements, or documents proving incomplete payment
Written requests previously sent to the company (if any)
Minutes of conciliation or statement of failed conciliation
Additionally, if the employee requests interest for late payment, a detailed interest calculation and relevant legal references must be provided so the court has grounds for consideration.
How does the court resolve wage claim disputes?
Upon receiving a valid lawsuit, the district-level People’s Court where the company is headquartered will handle the case as per the Civil Procedure Code. If the company is duly summoned but fails to appear without a legitimate reason, the court may proceed in absentia and issue a ruling based on the plaintiff’s evidence.
If the employee can provide sufficient evidence proving that the company owes wages, failed to fulfill payment obligations, and conciliation failed, the court is likely to accept the claim. In addition to the unpaid wages, the court may also require the company to pay:
Interest on overdue wages
Severance allowance if eligible
Interest on late severance allowance
Obligations related to returning and finalizing social insurance records
Once the court's judgment takes effect, if the company does not voluntarily comply, the employee has the right to request the civil judgment enforcement agency to enforce execution. The request must include the court ruling and evidence that the time limit for voluntary compliance has expired but the company has not made the payment.
The enforcement agency will verify the company’s assets, headquarters, and bank accounts to carry out asset seizure, freezing, or auction if necessary to fulfill the wage debt as per the judgment.
Practical experience to help employees better protect their rights
From handling many wage dispute cases, DEDICA's lawyers have drawn the following practical advice to help employees enhance their ability to claim their rightful interests:
Always request a clear written labor contract
Keep all emails, time sheets, payroll records, and other documents related to your employment
Send a written demand to the company before conciliation or filing a lawsuit
Clearly determine the date of the employer's violation to calculate limitation periods for conciliation and litigation
Seek assistance from a labor law attorney for legal advice and representation
DEDICA – Accompanying employees in all labor disputes
As a law firm specializing in labor disputes and representing employees, DEDICA has successfully supported many clients in reclaiming unpaid wages, social insurance, severance pay, and other contractual rights. We not only help you initiate legal proceedings correctly but also support judgment enforcement to ensure your rights are realized in practice.
If you're facing wage issues with your company, don’t hesitate. Contact DEDICA for the most suitable legal solutions.
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