Vietnam: What is the administrative fine imposed for employers that apply monetary fines or deduct the employee’s salary wage instead of labor discipline?
What is labor discipline in Vietnam?
According to the regulations in Article 117 of the Labor Code 2019 on labor discipline:
Labor discipline
Labor discipline comprises provisions in the internal labor regulations on the compliance in respect of time, technology, production and business management that are imposed by the employer and prescribed by law.
Thus, according to the regulations, labor discipline ccomprises provisions in the internal labor regulations on the compliance in respect of time, technology, production and business management that are imposed by the employer and prescribed by law.
Can employers in Vietnam apply monetary fines or deduct the employee’s salary wage instead of labor discipline? (Image from the Internet)
Can employers in Vietnam apply monetary fines or deduct the employee’s salary wage instead of labor discipline?
Under the regulations in Article 127 of the Labor Code 2019, the forbidden actions when imposing disciplinary measures in the workplace are stipulated as follows:
Forbidden actions when imposing disciplinary measures in the workplace
1. Harming the employee's health, life, honor or dignity.
2. Applying monetary fines or deducting the employee’s salary wage.
3. Imposing a disciplinary measure against an employee for a violation which is not stipulated in the internal labor regulations or employment contract or labor laws.
Thus, employers in Vietnam are not allowed to apply monetary fines or deduct the employee’s salary wage instead of labor discipline.
What is the administrative fine imposed for employers that apply monetary fines or deduct the employee’s salary wage instead of labor discipline?
According to the regulations in Article 19 of Decree 12/2022/ND-CP, violations against regulations on labour discipline and material responsibility are stipulated as follows:
Violations against regulations on labour discipline and material responsibility
...
3. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed upon an employer for commission of one of the following violations:
a) Harming the employee's health, life, honor or dignity when imposing disciplinary measures in the workplace if not liable to criminal prosecution;
b) Applying monetary fines or deducting the employee’s salary wage instead of disciplinary measures;
c) Imposing a disciplinary measure against an employee for a violation which is not stipulated in the internal labour regulations or employment contract or labour laws;
d) Imposing more than one disciplinary measure for one violation;
dd) Imposing disciplinary measures against an employee during the period when he/she is taking leave on account of illness or convalescence, or on other types of leave with the employer’s consent; he/she is being held under temporary custody or detention; he/she is waiting for verification and conclusion of the competent authority for acts of violations specified in Clause 1 and Clause 2 Article 125 of the Labour Code.
4. Remedial measures
a) The employer that commits the violation in Point dd Clause 2 or Point c Clause 3 of this Article is compelled to reinstate the employee and pay full salary as agreed in the employment contract to employee for the period during which the employee is dismissed by the employer for disciplinary reasons.
b) The employer that commits the violation in Point e or g Clause 2 of this Article is compelled to pay full salaries to employees during the period they are suspended from work.
c) The employer that commits the violation in Point a Clause 3 of this Article is compelled to issue public apology to the employee and fully pay treatment costs and salary to the employee during his/her treatment period if the employee is physically harmed to the extent that he/she must receive treatment at health facilities.
d) The employer that commits the violation in Point b Clause 3 of this Article is compelled to return collected amounts or pay full salaries to employees.
Thus, according to the regulations, employers that employers that apply monetary fines or deduct the employee’s salary wage instead of labor discipline may be administratively fined up to 40,000,000 VND. Additionally, employers are compelled to return collected amounts or pay full salaries to employees.
The above fine applies to organizations while individuals committing the same violation are fined half of the amount for organizations.
LawNet
