If your employer in Vietnam owes you salary, you can claim it by first raising it in writing with the employer, then asking a labour mediator to intervene, and finally taking the claim to a labour arbitration council or court. The Labour Code requires wages to be paid directly, in full and on time, and it limits what an employer may deduct. A delay beyond a short period also obliges the employer to compensate you.
This guide explains what the law says about paying wages, how to prove what you are owed, what to do if the employer is in financial trouble or the owners have disappeared, and how employers should handle a cash-flow crisis without breaking the law. It covers both Vietnamese and foreign employees. Details such as limitation periods and court fee exemptions should be checked against the rules in force when you act.
What the Labour Code requires on paying wages
The starting point is simple: wages must be paid directly to the employee, fully and on the dates agreed in the contract or internal pay rules. Payment can be in cash or by bank transfer, and where it is by transfer the employer bears the account fees. Wages are normally paid in Vietnamese dong; for foreign employees working in Vietnam the law allows payment in foreign currency, subject to foreign exchange rules. Every time wages are paid, the employer must give a payslip showing the salary, overtime and night work pay, any deductions and the net amount.
The employer may not force an employee to spend wages on its own goods or services, and it may not hold back wages as a way of keeping someone from leaving. Deductions are limited. An employer can deduct wages to compensate for damage the employee caused to tools or equipment, but only within a cap set as a percentage of the monthly salary after compulsory insurance contributions and tax. Any other deduction needs a legal basis, such as personal income tax withholding, compulsory insurance contributions, or the employee's own written agreement for something like a union fee.
If the employer cannot pay on time because of force majeure, after trying every remedy, it may delay for a limited period. A longer delay requires compensation at least equal to the interest the late amount would earn at a bank deposit rate. These rules apply whether the employer is a small local workshop or a subsidiary of a listed multinational.
Types of pay that commonly go unpaid
Unpaid wages are rarely a single number. When you calculate what you are owed, check each of the following separately, because they follow different rules:
| Item | What the law says in principle | Evidence to gather |
|---|---|---|
| Base salary | Paid in full on the agreed pay date | Contract, appendices, payslips, bank statements |
| Overtime | Paid at premium rates: at least 150% on normal days, 200% on weekly rest days, 300% on public holidays and paid leave days, plus extra for night work | Timesheets, approval emails, access records |
| Allowances | Paid as stated in the contract or pay rules, such as position, responsibility or housing allowances | Contract and internal pay regulations |
| Bonuses | Due if the contract, collective agreement or bonus regulation promises them; a "13th month" is customary, not compulsory by law | Bonus policy, offer letter, past practice |
| Unused annual leave | Paid out for days not taken when employment ends | Leave records |
| Final settlement | All amounts due settled within a short statutory period after the contract ends (fourteen working days under the 2019 code, extendable in limited cases) | Termination decision, final payslip |
Many disputes are not about whether salary was paid but how it was calculated. An employee paid a large "gross" figure in an English offer letter may find the Vietnamese contract states a lower base salary with the rest labelled as allowances or bonus. Which document governs, and what was agreed, often decides the claim.
Build your evidence before you complain
A wage claim succeeds or fails on paper. Start collecting copies while you still have access to company systems, staying within what you are entitled to see:
- Your employment contract and every appendix, in both languages if it is bilingual.
- All payslips, or if you never received them, bank statements showing what arrived each month.
- Emails, chat messages or meeting notes where a manager acknowledged the debt or promised a payment date.
- Timesheets, shift rosters or approved overtime requests for unpaid overtime.
- The internal pay regulation, bonus policy or collective agreement if you were given one.
- Your social insurance record, which shows the salary the employer declared for contributions and can reveal under-declaration.
- Names of colleagues in the same position, since a pattern of late payment across a team supports your account.
Do not copy confidential business data you are not entitled to keep. Taking client lists or financial files to support a wage claim can hand the employer a counter-claim and distract from your strong point, which is the money owed to you.
From reminder to claim: a practical sequence
Most wage problems are solved before a formal claim. The sequence below keeps your options open while building pressure:
- Ask directly. Write to HR and your line manager asking when the missing salary will be paid. Keep it short and factual.
- Request a written confirmation of the debt. A short note signed by the employer confirming the months and amounts unpaid is valuable evidence and helps with limitation.
- Send a formal demand. If nothing happens, send a letter to the legal representative stating the amounts, the legal basis and a deadline. Keep proof of delivery.
- Involve the employee representative organisation. Where the workplace has a trade union, it can raise the issue collectively and support you in dialogue.
- Ask for mediation. A dispute over wages during employment usually goes to a labour mediator before any arbitration or court claim.
- File a claim. If mediation fails, choose between the labour arbitration council and the court. Employees bringing wage claims are often exempt from court fees, but confirm this with the court.
- Report non-compliance. Separately, the labour inspectorate can be told about systematic non-payment. Inspection can lead to sanctions and sometimes prompts payment, but it does not replace your own claim.
When the employer is in trouble or the owners have gone
Some of the hardest wage cases arise when a business collapses. A factory stops production, the foreign director leaves the country, and employees arrive to find the gates locked. Vietnamese law gives employees' wages and other employment debts priority in bankruptcy proceedings ahead of most unsecured creditors, but priority does not create money that is not there, and bankruptcy is slow.
In this situation, act collectively. Employees should register their claims with the trade union or employee representatives, notify the provincial labour authority and the local commune-level authority, and keep records of every unpaid month. Local authorities often step in when a large workforce is affected, coordinating with the social insurance agency and, where assets remain, with the courts. Creditors including employees can petition for bankruptcy if the employer has failed to pay wages for the period set by the bankruptcy law.
A hypothetical example: a garment exporter in Dong Nai loses its main buyer, pays half salaries for two months and then stops. Workers who obtained a signed debt confirmation in the first month and registered claims with the union are in a far better position than those who waited, both in negotiations with a potential buyer of the factory and in any bankruptcy proceeding.
Advice for employers facing a cash-flow crisis
An employer that sees a payroll shortfall coming has lawful options, and using them early is far cheaper than defaulting. It can discuss temporary measures with the employee representative organisation, such as reduced hours with corresponding pay, temporary transfer to other work within the limits the code allows, or a work stoppage with the pay rules that apply to it. Each option has conditions, and the employer should not impose a pay cut unilaterally by email.
Silence is the worst approach. Employees who are told the truth and given a dated plan are more likely to wait; employees who discover missing salary on payday are more likely to complain to authorities the same week. Put any agreement on deferred payment in writing, signed by the legal representative, with dates and amounts, and honour it.
Foreign-invested employers should also remember that the legal representative and managers can face administrative sanctions for wage violations, and in serious cases of deliberate non-payment there can be criminal exposure. Paying wages before other creditors is not only fair; it is the obligation the law places at the top of the list.
Mistakes that weaken a wage claim
Accepting partial payments without a note. Taking part of what you are owed is sensible, but write a short reply confirming the amount received and the balance still outstanding. Otherwise the employer may later say the partial payment settled everything.
Signing a final settlement you have not checked. Some employers ask departing staff to sign a statement that "all entitlements have been paid". Read it line by line against your own calculation. If something is missing, write your reservation on the document or refuse to sign until it is corrected.
Stopping work without notice. Walking out because salary is late can be justified, but only if you follow the rules for immediate resignation and give written notice stating the reason. An unexplained absence gives the employer a ground to terminate you instead.
Relying on verbal promises. A manager who says "the money will come next week" on a call has given you nothing you can show a mediator. Ask for the promise in an email or message, and save it.
Letting the clock run. Wage claims are subject to limitation periods. Months of waiting for a struggling employer to recover can cost you the right to claim the earliest months. A signed debt confirmation or a filed request for mediation protects you.
When you need a Vietnamese lawyer
For a single month of late salary, a firm letter and a meeting with HR usually suffice. A lawyer is worth involving when the amount covers several months, when bonuses or commissions are disputed, when the employer argues that your "real" salary is lower than the figure you were promised, or when the business is heading towards insolvency and you need to protect your position as a creditor.
Foreign employees have an additional reason to get advice: unpaid salary often comes together with an employer that stops renewing work permits or deregisters a residence address, and those consequences can arrive before the wage claim is resolved. A lawyer can help plan the timing so you are not forced to leave before the claim is filed or authorised to a representative.
Bring your contract, payslips, bank statements and a month-by-month table of what was due and what arrived. For a quick first view of whether your calculation and evidence hold up, you can ask a lawyer on AI Co Van. For deadlines, fee exemptions and the competent court, check the current rules with the court or a licensed lawyer.
Frequently asked questions
How late can an employer in Vietnam pay salary?
The Labour Code requires payment on the agreed date. A delay is only allowed for force majeure after the employer has tried every remedy, and even then only for a limited period. Longer delays oblige the employer to compensate at least the interest the late amount would earn. Check the current rule for the exact limits.
Can my employer cut my salary without my agreement?
Not lawfully. Salary is a term of the employment contract, so a reduction needs your agreement in a contract amendment, except in specific situations the law allows such as a lawful temporary transfer, which has its own pay protections. A unilateral cut can be challenged in mediation or court.
Can a foreign employee be paid in US dollars in Vietnam?
The Labour Code allows foreign employees in Vietnam to be paid in foreign currency, subject to foreign exchange regulations. Vietnamese employees are normally paid in dong. If your contract mixes currencies, check how exchange rates are fixed and which amount the contract treats as your salary.
Is a 13th-month salary compulsory in Vietnam?
No. A Tet bonus or 13th-month salary is customary and very common, but the law does not require it. It becomes enforceable when your contract, a collective agreement or the employer's bonus regulation promises it, or arguably when consistent past practice shows it was part of the agreed pay.
Do I have to pay court fees to sue for unpaid wages?
Employees suing for wages, allowances and certain other employment entitlements are commonly exempt from court fees under the rules on court fees and charges. The exemption depends on the type of claim, so confirm with the court when you file rather than assuming it applies to everything.
What if I resign because my salary is not paid?
Non-payment or late payment of wages is one of the situations in which an employee can end the contract without giving the usual notice. Make sure the non-payment is documented before you leave, and state the reason in your written notice so that it cannot later be treated as an unlawful resignation.