Vietnam: Failing to employees on time shall be fined up to VND 50 million

According to Clause 10 Article 1 of Decree No. 88/2015/NĐ-CP of Vietnam’s Government amending and supplementing Article 13 of Decree No. 95/2013/NĐ-CP, fines shall be imposed upon any employer who commits any of the following violations: Failure to pay on time; paying workers lower than the levels in the pay scale or payroll sent to the labor authority of the district; failure to pay or failure to sufficiently pay for overtime work, night work, and wages for suspension period to workers as prescribed by law; deducting workers’ wages against the law; paying wages against the law when temporarily reassigning workers against their labor contracts, during the suspension period, strike period, or unused annual leave:

- From VND 5,000,000 to VND 10,000,000 if the violation involves 01 – 10 workers;

- From VND 10,000,000 to VND 20,000,000 if the violation involves 11 – 50 workers;

- From VND 20,000,000 to VND 30,000,000 if the violation involves 51 – 100 workers;

- From VND 30,000,000 to VND 40,000,000 if the violation involves 101 – 300 workers;

- From VND 40,000,000 to VND 50,000,000 if the violation involves more than 300 workers.

Moreover, Decree No. 88/2015/NĐ-CP also stipulates that fines shall be imposed upon any employer who pays workers less than the region-based minimum wages prescribed by the Government:

- From VND 20,000,000 to VND 30,000,000 if the violation involves 01 – 10 workers;

- From VND 30,000,000 to VND 50,000,000 if the violation involves 11 – 50 workers;

- From VND 50,000,000 to VND 75,000,000 if the violation involves more than 50 workers.

In addition to fines, the violating entities shall be compelled to pay sufficient wages plus an interest on the unpaid amount of wage at the highest rate of demand deposit announced by state-owned commercial banks at the time of penalty imposition.

View full text at Decree No. 88/2015/NĐ-CP of Vietnam’s Government, effective from November 25, 2015.

Thu Ba

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