Công văn 1287/LDTBXH-LDTL

To: Viet Pacific Garment Company

With regard to Official Dispatch No. 07/CV-VPA/2015 dated 30/01/2015 of Viet Pacific Garment Company (VPGC) about the payment for annual leave, the Ministry of Labor, War Invalids and Social Affairs hereby provides instructions as follows:

1. Payment for annual leave

As prescribed in Point c Article 97 of the Labor Code and Point c Clause 2 Article 25 of Decree No. 05/2015/ND-CP dated 12/01/2015 by the Government, any employee working on paid days-off shall be paid at least 300% of the unit wage or the actual wage, excluding paid leave with respect to daily paid employees.

As prescribed in Clause 4 Article 26 of Decree No. 05/2015/ND-CP the wage used as the basis for calculating the pay for employees on untaken leave is the average wage, according to the labor contract, of 06 months directly before the time of calculation, divided by normal working days in the month directly before the time of calculation as prescribed by the employer, multiplied by the number of untaken leave days.

Accordingly, if the employee works overtime on annual days-off as prescribed by the employer, then he/she shall be paid for his/her overtime work in accordance with regulations in Article 25 of Decree No. 05/2015/ND-CP (at least 300% of the actual wage, excluding wages for paid days-off of daily paid employees). In case the employee resigns or is laid off, or in other cases in which the employee has not taken all the leave, then he/she shall be paid according to regulations in clause 4 Article 26 of Decree No. 05/2015/ND-CP (100% of the contractual wage).

2. Annual leave during probation period

According to VPGC’s Official Dispatch No. 07/CV-VPA/2015 VPGC has issued a regulation on calculation of annual leave for probation period. After the probation period, if a labor contract is concluded, the taken leave shall be included in the annual leave; if no labor contract is concluded, the employee shall be also paid according to regulation on annual leave. Such regulation is conformable to the laws.

That a tailor having 01-month probation period is entitled to 01 annual leave day is conformable to the regulation on calculation of annual leave prescribed in Article 7 of Decree No. 45/2013/ND-CP dated 10/5/2013 by the Government; regarding tailor assistants, who have a 6-day probation period, the annual leave shall be 0 day.