The problem: months of late pay, promises, then silence
You are a foreigner working in Vietnam. For three months the company has paid late; the most recent month it did not pay at all. Each time you ask, HR says “the company is having difficulties, we are arranging it”, then goes silent. You still have rent and living costs while the unpaid amount keeps growing.
Many foreigners hesitate to push hard, fearing they will lose the job or the work permit. But Vietnamese labor law is very clear on wages: a company may delay pay only within narrow limits, must compensate interest when late, and you have the right to unilaterally end the contract without notice when wages are withheld for a long time.
Key legal grounds
Article 94 of the 2019 Labor Code states the principle: employers must pay wages directly, fully, and on time. This is a hard obligation, independent of the company’s business situation.
Article 95, Clause 2: contractual wages and wages paid are in Vietnamese dong; foreign employees in Vietnam may be paid in foreign currency. Each payday, the company must provide a pay slip itemizing the amounts.
Article 97, Clause 4 is the key late-payment rule: delay is allowed only in force majeure where the employer has tried every remedy but still cannot pay on time, and never beyond 30 days. If payment is 15 days late or more, the company must compensate the employee at least the interest on the delayed amount, calculated at the 1-month term deposit rate published by the bank where the company holds its payroll account, at the time of payment.
Clause 2, Article 23 of Decree 283/2026/ND-CP (which replaced Decree 12/2022/ND-CP from 10 September 2026): late payment, non-payment, or underpayment of contractual wages draws fines scaled by the number of affected employees — VND 5,000,000 to 10,000,000 (1 to 10 employees); VND 10,000,000 to 20,000,000 (11 to 50); VND 20,000,000 to 30,000,000 (51 to 100); VND 30,000,000 to 40,000,000 (101 to 300); and VND 40,000,000 to 50,000,000 (301 or more). These fines apply to individual employers; for organizations, the fine is doubled under Article 7 of Decree 283/2026/ND-CP. Beyond the fine, the company is forced to pay all wages owed plus interest on the late or underpaid amount at the highest demand-deposit rate published by state-owned commercial banks at the time of sanctioning.
Article 35 of the 2019 Labor Code: an employee may unilaterally terminate the labor contract without notice when not paid in full or not paid on time, except in the force majeure case of Article 97, Clause 4.
Articles 188 and 190 of the 2019 Labor Code: individual wage disputes must go through a labor conciliator before the court, except for exempted cases; the limitation for bringing the case to court is 1 year from discovery of the violation.
Decree 24/2018/ND-CP governs labor complaints and denunciations: the employee first complains to the employer itself, then to the Chief Inspector of the Department of Home Affairs where the company sits.
Telling genuine hardship from deliberate withholding
The law allows delayed pay in exactly one scenario: force majeure where the company has exhausted every remedy, capped at 30 days, with interest compensation due from day 15 of delay. “Weak revenue”, “uncollected receivables”, or “waiting for capital” are not force majeure. If a company cites business difficulty to owe 2 to 3 months of wages without proving force majeure, that is a violation, not a situation the law sympathizes with.
In practice, many companies play the drip game: paying a small fraction each month to keep employees working. Foreign employees should know: each delayed pay cycle is an independent violation, and your continuing to work does not waive your right to interest compensation or to terminate the contract unilaterally.
Five steps to claim wages effectively
Step 1. Put the demand in writing and fix the figures. Email the company listing each delayed pay cycle with exact amounts and a payment deadline. Keep the labor contract, past pay slips, and bank statements of salary receipts as evidence.
Step 2. Complain through the formal channel. First complaint to the company itself; if unresolved, second complaint to the Chief Inspector of the Department of Home Affairs. This channel is especially useful when many employees are owed wages, since inspectors can audit broadly and fine administratively.
Step 3. Denounce for administrative sanction. Alongside the complaint, you may denounce the violation to the inspectorate so the company is fined under Clause 2, Article 23 of Decree 283/2026/ND-CP and forced to pay wages plus interest. Sanction pressure often makes companies arrange payment faster.
Step 4. Conciliate, then sue. Wage disputes must go through a labor conciliator before court. Prepare a conciliation request stating the wage amounts, interest compensation, and violation period. If conciliation fails, sue at the People’s Court where the company sits within the 1-year limitation.
Step 5. Consider unilateral termination. If wages are long overdue and you have a new job lined up, Article 35 lets you end the contract without notice. Plan the new work permit and residence arrangement carefully first, so you do not end up working without authorization.
Frequently asked questions
1. The company says times are hard and pays 2 months late. Is that a violation?
Yes, unless the company proves force majeure and exhausted remedies. Ordinary business difficulty is not force majeure. Two months far exceeds the 30-day maximum, and with delay beyond 15 days the company also owes you interest compensation.
2. My salary is paid in USD. Is it protected like VND pay?
Yes. Article 95, Clause 2 allows foreign-currency pay for foreign employees in Vietnam, and all rules on timely payment and late-payment interest apply equally. Interest is calculated on the delayed amount per the contract terms.
3. I already quit. Can I still claim old wages?
Yes, as long as you are within the 1-year limitation from discovering the violation, under Article 190, Clause 3. Leaving the job does not erase your right to wages for months worked. Sue early; do not let the limitation expire.
4. The company also owes social insurance contributions. What to do?
That is an independent violation from wage arrears. You may denounce it to the social insurance agency and the inspectorate for fines, and demand the book be closed and contributions topped up. Social insurance disputes are among those exempt from mandatory conciliation before suing under Article 188.
5. The company vanished and the director fled. Who do I claim from?
Still sue the company as a legal entity, because the wage obligation belongs to the company, not the individual director. Also report to investigators if there are signs of asset stripping, and register your claim if the company enters bankruptcy proceedings. Early information on company accounts and assets helps at the judgment-collection stage.
If you are a foreigner owed months of wages by a company in Vietnam, FLAT LAW FIRM can help finalize the wage and interest figures, draft complaints and denunciations to the inspectorate, represent you in conciliation and lawsuits, and advise on handling the labor contract and work permit in parallel.
This article provides general legal information and does not substitute advice for specific cases.
This article has been quality-reviewed by the FLAW AI Legal Council