ACDC’s Law Department advises:
Question: As far as I know, allowances and other additional payments are the major contents of the labor contracts. In specific, what allowances and other additional payments are under the labor contract? Thank you!
Answer by ACDC’s Law Department:
According to Point dd, Clause 1, Article 21 of the 2019 Labour Code stipulating the contents of labour contracts, it is compulsory to include allowances and other additional payments are compulsory in the labour contract.
Pursuant to Clause 5, Article 3 of Circular No. 10/2020/TT-BLDTBXH on guiding the implementation of a number of articles of the Labour Code regarding contents of a labor contract, collective bargaining councils and occupations and jobs that are harmful to reproduction and parenting functions, allowances and other additional payments under the labour contract shall be agreed by both the employer and the employee. In specific:
- Allowances as agreed by the contracting parties:
+ Allowances to compensate factors such as working conditions, job complexity, employee’s life, and employment attraction that the base salary agreed under the employment contract fails to take into account or sufficiently take into account;
+ Allowances associated with the job process and performance of the employee.
- Other additional payments as agreed by the contracting parties:
+ Additional payments with specific amounts in conjunction with the base salary agreed under the employment contract and to be paid regularly in every pay period;
+ Additional payments with non-specific amounts in conjunction with the base salary agreed under the employment contract and to be paid regularly or irregularly in every pay period, associated with the job process and performance of the employee.
The following benefits shall be stated in a separate section in the employment contract: bonuses, initiative bonuses; mid-shift meal allowance; vehicle, cell phone, travel, lodging, daycare, children raising allowances; allowances for the employee whose relatives dies or get married, employee’s birthday, allowances for the employee suffering financial hardship upon an occupational accident or disease and other allowances.
Thus, allowances and other additional payments under the labor contract will be implemented in accordance with the above provisions.
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