Paying salary fairly and worthily to what the employees have dedicated to the enterprise it is not only a brilliant investment into human resource but a priority to legal obligation of the employer. As of January 01, 2021, employers need to pay attention to the change of the salary scheme under the Labor Code 2019 to execute completely the responsibilities in labor relations.

Authorized person can receive salary for the employee

One of the flexible approach in the Labor Code 2019 is the result from solving the confusion of many employers who cannot pay salary directly to the employees in case they get sick or accident as stated in the applicable law.

From January 01, 2021, the Labor Code 2019 allows the employers to pay salary to the authorized person of the employee. Such exception helps the enterprise to complete its obligation together with support the employees to reap the fruit of their labor.

Prohibit acts: Forcing employees to buy company’s goods and services by his/her wages

It is quite popular for the enterprises to call for or even force the employees to buy goods and services of the enterprise, especially at the end of the year or season. The liquidation form “clean the warehouse” before new batch of goods arrives is unreasonable, causing frustration and annoyance for the employees.

As a result, the Labor Code 2019 announces and the enterprises have to aware that such interfering with or forcing the employees to buy goods and services by their wages is illegal. Not only does it honor the true way of doing business but also protects self-determination of employees in spending for what they make.

Detailed statistical tables of employee’s salary are needed

Currently, the enterprises often pay salary to the employees with the actual amount received without attach the detail statistical table. In case there is any mistake in salary calculation, this ambiguity prevents the ability to crosscheck and promptly correct of the employers as well as the right to claim on time of the employees, making their right sometime being ignored.

Therefore, the Labor Code 2019 requests the employers to pay salary together with detail statistical table in which clearly states the salary, overtime pay, overtime pay at night, deduction (if any). In order to ensure the transparency in the salary scheme, this provision sets out the challenge which C&B department of each enterprise has to solve successfully.

Employer charges the bank fee for salary payment via bank account

Banking transfer is an option chosen mostly by the enterprises and employees to pay and receive salary. However, lawmaker gives up the perspective on paying account opening and maintenance fees to be agreed by the employees and employers to change to the perspective of defining that this is the employer’s obligation under the Labor Code 2019.

This regulation is legitimate due to the fact that receiving salary is the certain right of the employees, versus the salary payment obligation of the employers. Nevertheless, from this provision, it may occur big expenses that the enterprises need to prepare, especially when there are many employees.

Bonus is not defined only as “Money”

The Labor Code 2019 changes the definition of “Money” to “Bonus” for the employees. It is not simply changing word but bonus will not only by money but by other forms (travel tour, shopping vouchers, etc.). It allows the enterprises to be more active to arrange flexibly and within their ability to treat and bring benefits to its employees.