Can Employers Deny Unpaid Leave Requests from Employees?

Unpaid leave for employees is not legally restricted in duration, provided there is mutual agreement between the employee and the employer.

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Due to family circumstances, Ms. N.T.H, a worker at a company in Tan Binh Industrial Zone, Ho Chi Minh City, recently submitted a request for a two-month unpaid leave. However, the company denied her request and proposed terminating her contract, offering full compensation and a guarantee to rehire her once her personal matters were resolved. Despite this, Ms. H. feels her rights have been compromised.

Ms. H. is a long-standing employee. When she first joined the company, annual salary increases and skill level upgrades were standard. However, since 2018, the company has shifted its salary structure, now only offering the minimum wage plus skill allowances and monthly productivity bonuses, eliminating annual salary adjustments for workers. Older employees, like Ms. H., retain their previous salary grades, resulting in her base salary being higher than that of employees hired after 2018.

“If I take a leave now and return after two months, I’ll have to start over with a lower base salary. What frustrates me is that another employee was previously granted unpaid leave. Is the company coercing its workers?” she questioned.

In cases of mutual agreement, employees may take unpaid leave if the employer consents.

Regarding personal leave and unpaid leave, Article 115 of the Labor Code allows employees to take one day of unpaid leave, provided they notify their employer in specific circumstances: the death of a grandparent, sibling, or parent’s remarriage. Employees may also negotiate unpaid leave for other reasons with their employer’s approval.

This means employees can take unpaid leave without a limit on days, provided there is a mutual agreement with the employer. Employers also reserve the right to decline such requests without violating the law.

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