When Labour Dispute over Bonus Issue Arises and How to Resolve?

Why Bonus Is Important and How It Is Agreed?

Employment bonus promise could help drive the performance for the business but sometimes disputes arise because there is discrepancy in translating how performance is met in the eye of employer and employee.

According to the provisions the Labour Code, the bonus, also known as the “other supplement”, is one of the main contents of the Labour Contract.

Specifically, bonus is understood as a sum of money paid by an employer to the employees on the basis of annual business results and the level of work performance of employees.

Bonus regulations of each company must be decided and publicly announced by the employer at the workplace after consultation with the representative organization of the grassroots-level employees’ collective.

Why Dispute Over Bonus Issue Would Arise?

However, there are companies that do not specify bonus regulations or companies with unclear bonus regulations referring to such generally as “based on capability”, or “based on work results” without referring to specific key performance indicator (KPI).

Such regulations will easily cause labour disputes that each party would need to seek consultancy from labour dispute lawyers in Vietnam.

In most of the case, the employee would face disadvantage because the employer will be the one whom make the final decision on whether or not the capability or work results are satisfied.

What is Labour Dispute?

A labour dispute means a dispute over rights, obligations and interests among the parties during the establishment, execution or termination of labour relation; a dispute between the representative organizations of employees; a dispute over a relationship that is directly relevant to the labour relation. Labour disputes over bonuses can be individual labour disputes or collective labour disputes.

The competence authority to settle labour disputes belongs to the Labour Mediator, the Labour Arbitration Council, and the People’s Court.

Normally, individual labour disputes or collective labour disputes must go through the mediation procedure of the labour mediator before referring to the court to settle, unless otherwise provided for by law.

Individual Labour Dispute over Bonus Issue

For individual disputes, in case the conciliation is unsuccessful or either party fails to implement the agreements in the minutes of successful conciliation or the settlement time limit expires but if the labour conciliator fails to conduct conciliation, each disputing party has the right to request a court or arbitration council for settlement.

Collective Labour Dispute over Bonus Issue

For collective disputes over bonuses, in case the conciliation is unsuccessful or one of the two parties fails to implement the agreements in the minutes of successful conciliation, the parties have the right to request the President of the district-level People’s Committee to resolve the dispute.

If the parties disagree with the decision of the President of the People’s Committee of the district or beyond the time limit but the President of the People’s Committee of the district does not settle, the parties have the right to request the Court to settle. In such situation, a litigation lawyer would be engaged to assist for productive result. 

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.