A company owes months of unpaid wages — employees not only have the right to claim, but civil procedure favors them with a simplified procedure faster than ordinary trial, plus exemption from court fees. This article guides the wage-claim journey from mediation to court.
1. Mandatory first step: the labor mediator
Disputes over unpaid wages are individual labor disputes not covered by the 6 exceptions in Article 188.1 of the 2019 Labor Code. Employees must therefore request a labor mediator’s conciliation first — a direct lawsuit will be rejected.
The limitation period for requesting mediation is 06 months from discovering the violation (Article 190.1) — e.g., from the payday the company missed.
2. Which court hears the case?
When mediation fails, the mediation period expires without mediation, or a successful mediation is ignored, employees sue in the regional People’s Court where the company is headquartered (since 01/07/2025, regional People’s Courts have inherited the jurisdiction of district-level People’s Courts under the 2024 Law on Organization of People’s Courts).
The limitation period for court action is 01 year from discovering the violation (Article 190.3, 2019 Labor Code).
3. Simplified procedure — a “fast lane” for employees
Under Articles 316–324 of the 2015 Civil Procedure Code, courts apply the simplified procedure when all 3 conditions are met (Article 317.1):
- (a) The case has simple facts and a clear legal relationship, the obligor has admitted the obligation; documents and evidence are complete and the court need not collect more;
- (b) All parties have clear residential or head-office addresses;
- (c) No party resides abroad and no disputed assets are abroad.
A typical wage claim — employment contract, payroll records, bank statements proving non-payment, the company admitting the debt — meets all 3 conditions, so employees may request the simplified procedure for faster resolution with simpler steps than ordinary first-instance trial.
Special note in Article 317.2: in labor cases, if a foreign employer (or its legal representative) leaves its registered address without notice, it is deemed to be deliberately concealing its address — the court still proceeds under the simplified procedure.
4. Employees are exempt from court fees
Under Article 12.1(a) of Resolution 326/2016/UBTVQH14, employees suing for wages (along with claims for allowances, social insurance, occupational accident compensation, or unlawful dismissal/termination) are exempt from advance court fees and court fees. Employees should file an exemption request with supporting documents to the court (Article 14, Resolution 326/2016).
5. Lawsuit dossier checklist
- Petition (per Article 189, 2015 Civil Procedure Code);
- Employment contract, salary decisions, payroll sheets;
- Bank statements proving unpaid months;
- The labor mediator’s mediation record (proving the mandatory step);
- Request for exemption from advance court fees and court fees.
6. Frequently asked questions
Q: The company owes wages but is still operating — can I recover?
A: Yes. Wage debt is the company’s payment obligation; follow the mediation-to-lawsuit path and request the simplified procedure if eligible.
Q: How much faster is the simplified procedure?
A: The law shortens many procedural time limits compared to ordinary procedure. The exact speed depends on the court, but simple cases with complete evidence are typically resolved significantly faster.
Q: Besides suing, can I report the company for unpaid wages?
A: Yes. In parallel with a lawsuit, employees may report to the Inspectorate of the Department of Home Affairs for administrative penalties under Decree 283/2026/ND-CP (effective 10/09/2026).
Owed wages and need litigation support? Contact us for advice.
Prepared by the FLAW AI Legal Council. This content is pending QA Council review before submission for approval; it is for reference only and does not replace legal advice for your specific situation.
