Do we have to compensate for damage caused by negligence?

Do we have to compensate for damage caused by negligence?
Posted date: 02/03/2021

I have been working for a private company in Hanoi for two years. Recently, due to negligence, I damaged some of the company's equipment and tools, causing a loss of about VND 2 million. I want to know if I have to compensate for the company and the amount of compensation if any.

Thank you.

FDVN’s opinions:

Thank you for concerning FDVN’s legal services. Regarding your consulting requests, after studying the relevant legal documents, FDVN Law Firm would like to give you the following advice:

In Clause 1, Article 129 of the Labor Code 2019, regulations on compensation for damage are specified as follows:

 “1. An employee who causes damage to equipment or otherwise damages the employer’s assets shall have to pay compensation in accordance with labor laws or the employer’s internal labor regulations.

In case the damage caused by an employee is not serious, not deliberate, and is worth less than 10 months’ region-based minimum wage announced by the Government, the employee shall have to pay a compensation of not more than his/her 03 months’ salary, which shall be monthly deducted from his/her salary in accordance with Clause 3 Article 102 of this Code.”

According to Clause 3, Article 101 of the Labor Code 2012, the salary deduction rate is as follows: “Any monthly deduction shall not exceed 30% of the net monthly salary of the employee, after the payment of compulsory social insurance, health insurance, unemployment insurance premiums, and personal income tax.”

Therefore, from the above provisions, in case you accidentally cause damage to the company with the value of no more than 10 months of the regional minimum salary, you must compensate with the maximum compensation level of 03-month salary and will be deducted from the monthly salary.

Above is FDVN Law Firm's opinion for your consulting requests based on studying the relevant legal provisions. Hopefully, FDVN's advice would be helpful to you.

Nguyen Thi Thanh Thanh Tra - FDVN Law Firm


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