The Deputy Minister of Labour, Invalids and Social Affairs Le Minh Huan recently confirmed the Government’s position in a recent interview with Dantri/DTiNews following news that a bakery in Hanoi had paid salaries and bonuses in cakes.
Companies are being discouraged from paying salaries and bonuses to employees in the form of products
Mr. Ninh Xuan Tr., a sales manager for the bakery, decided to terminate his contract after the firm had delayed the payment of salaries for three months. The company still owes him VND50 million (USD2,380) in outstanding wages and bonuses.
After agreeing to end his contract, he was shocked to discover that he and other staff members would be paid in cakes, not cash. His VND50 million cash payment had been converted into more than 2,000 cake packets.
Bizarrely enough, company Managing Director Nguyen Cong Phuc was also left in the same situation. Over recent months, his monthly salary of USD2,100 have been converted into cakes.
Mrs Phan Thi Thu, a worker from a garment and textile company in Long Bien District, Hanoi, was cited by Sai Gon Tiep Thi Newspaper as saying that, said she sometimes gets bonuses for Tet or other holidays in the form of coats.
“I now have 7-8 coats which aren’t nice enough to be sold or given away to friends or relatives. The company said each coat costs VND400,000-500,000 (USD19-23.8), but it would be better if they gave us VND100,000-200,000 (USD4.76-USD9.52) in cash,” she said.
Earlier, staff working in an electricity generating company in Thai Nguyen Province received their Tet bonus in the form of light bulbs.
The deputy minister said the Labour Code only stipulates bonuses and salary payments in cash, there are no regulations related to payments in products. “Despite not being banned, companies are actively discouraged from making this kind of payment. In cases where the businesses are struggling, they must receive the explicit consent of their workforce to take such action,” he noted.
The state has only issued policies to support workers whose salaries are owed by bankrupt companies; but in companies which are merely guilty of poor performance the payment depends on negotiations between the employer and the employee.
The Hanoi Department of Labour, Invalids and Social Affairs has asked local firms to submit their planned Tet bonuses. The department forecasted that despite the economy’s difficulties, there would still be extremely high bonuses paid out.
