The operations of the American International School Vietnam rectified by the Government of Vietnam? What are the penalties imposed upon private schools failing to pay salaries to teachers?
The operations of the American International School Vietnam rectified by the Government of Vietnam?
On March 29, 2024, the Prime Minister issued Dispatch 28/CD-TTg 2024 to regulate the operations of the American International School Vietnam, including primary, lower secondary, and upper secondary levels in Ho Chi Minh City, as follows:
(1) The Chairman of the People's Committee of Ho Chi Minh City is responsible for directing the relevant agencies of the city to:
- Urgently implement appropriate measures to ensure the students' right to education and prevent any disruption in their learning.
Implement measures to stabilize the mindset of students and parents, as well as maintain social order, security, and safety.
- Conduct a thorough review and assessment of the responsibilities of the investor of the American International School and take necessary actions to ensure compliance with legal regulations and the legitimate rights and interests of students.
- Strictly review and enhance the inspection and oversight of schools teaching integrated programs and those with foreign elements within the jurisdiction to promptly detect and rectify any potential violations.
(2) The Ministry of Education and Training is responsible for:
- Urgently completing draft decrees to amend and supplement Decrees:
+ Decree 86/2018/ND-CP on foreign cooperation and investment in education.
+ Decree 46/2017/ND-CP on regulatory requirements for educational investment and operation.
This includes solutions to strengthen the management of various types of schools with foreign elements involved in joint ventures, partnerships, integrated programs, international programs, and programs in collaboration with foreign entities.
- Reviewing and inspecting schools with foreign elements nationwide that are implementing integrated programs, international programs, and programs in collaboration with foreign entities to promptly identify, rectify, and handle any violations.
Therefore, the Prime Minister has issued specific directions to regulate the operations of the American International School Vietnam, including primary, lower secondary, and upper secondary levels, with responsibilities assigned to the Chairman of the People's Committee of Ho Chi Minh City and the Ministry of Education and Training.
The operations of the American International School Vietnam rectified by the Government of Vietnam? What are the penalties imposed upon private schools failing to pay salaries to teachers?
Vietnam: Do private schools that owe teacher salaries have to pay interest?
Pursuant to Article 94 of the 2019 Labor Code, it is stipulated as follows:
Salary payment rules
1. Employers shall directly, fully and punctually pay salaries to their employees. In the cases where an employee is not able to directly receive his/her salary, the employer may pay it through a person legally authorized by the employee.
2. Employers must not restrict or interfere their employees’ spending of their salaries; must not force their employees to spend their salaries on goods or services of the employers or any particular providers decided by the employers.
Accordingly, private schools are responsible for paying the salaries fully and punctually as agreed upon by the parties.
In addition, Clause 4, Article 97 of the 2019 Labor Code also stipulates as follows:
Salary payment time
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4. In case of a force majeure event in which the employer is unable to pay the employee on schedule after all remedial measures have been implemented, the salary shall be paid within 30 days. In case a salary is paid at least 15 days behind schedule, the employer shall pay the employee a compensation that is worth at least the interest on the amount paid behind schedule at the latest 1-month interest rate quoted by the bank at which the employee’s salary account is opened.
Thus, if teachers' salaries are paid at least 15 days behind schedule, the school must pay additional interest to the teachers.
What are the administrative penalties imposed upon private schools failing to pay salaries to teachers in Vietnam?
Pursuant to Clause 2, Article 17 of Decree 12/2022/ND-CP stipulates as follows:
Violations against regulations on salaries
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2. The following fines shall be imposed upon an employer for commission of one of the following violations: Failing to pay salaries on schedule as prescribed by law; failing to pay or insufficiently paying salaries to employees as agreed in their employment contracts; failing to make or insufficiently making overtime pay; failing to make or insufficiently making nightshift pay; failing to pay or insufficiently paying work suspension allowances as prescribed by law; restricting or interfering employees’ spending of their salaries; forcing employees to spend their salaries on goods or services of the employer or any particular providers decided by the employer; deducting from employees’ salaries in breach of law; failing to pay or insufficiently paying salaries to employees how are reassigned to perform works which are not specified in their employment contracts or during a strike; failing to make or insufficiently making payments to employees who, due to employment termination or job loss, have not taken or not entirely taken up their annual leave in compensation for their untaken leave days; failing to make or insufficiently making advance payments to employees who temporarily leave their works in accordance with regulations of law; failing to pay full salaries to employees who are not disciplined for their work suspension period:
a) A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed if the violation involves 01 - 10 employees;
b) A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed if the violation involves 11 - 50 employees;
c) A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed if the violation involves 51 - 100 employees;
d) A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed if the violation involves 101 - 300 employees;
dd) A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed if the violation involves 301 employees or more.
In addition, Clause 1, Article 6 of Decree 12/2022/ND-CP stipulates as follows:
Fines, power to impose penalties, and rules for imposing penalties for repeated violations
1. The fines for administrative violations prescribed in Chapter II, Chapter III and Chapter IV of this Decree shall be imposed upon violating individuals, except the fines in Clauses 1, 2, 3, 5 Article 7, Clauses 3, 4, 6 Article 13, Clause 2 Article 25, Clause 1 Article 26, Clauses 1, 5, 6, 7 Article 27, Clause 8 Article 39, Clause 5 Article 41, Clauses 1 through 12 Article 42, Clauses 1 through 8 Article 43, Clauses 1 through 6 Article 45, Clause 3 Article 46 of this Decree. The fine imposed upon an organization is twice as much as that imposed upon an individual for committing the same administrative violation.
Therefore, private schools that owe teacher salaries may be fined an amount ranging from 10,000,000 VND to 100,000,000 VND.
In addition, the school that owes teacher salaries will also be subject to the measure of remedying the consequences, which is to fully pay the salary amount plus the interest on the delayed salary payment to the teachers (as stipulated in Clause 5, Article 17 of Decree 12/2022/ND-CP).
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