Vietnam: Does the enterprise need to report an increase in the number of employees participating in social insurance after signing employment contracts?
- Cases to report an increase or decrease in the number of employees according to Vietnamese regulations?
- What is the time limit for reporting an increase or decrease in labor according to Vietnamese regulations?
- Penalties for late reporting increase or decrease in the number of employees according to Vietnamese regulations?
Cases to report an increase or decrease in the number of employees according to Vietnamese regulations?
Pursuant to the provisions of Article 98 of the Law on Social Insurance 2014, the adjustment of information on participation in social insurance is:
“Article 98. Adjustment of information on participation in social insurance
1. Employers shall notify writing social insurance agencies of any changes in the information about participation in social insurance.
2. A dossier for adjustment of an employee’s personal information of participation in social insurance must comprise:
a/ A declaration form for adjustment of personal information;
b/ The social insurance book;
c/ Copies of competent state agencies’ papers related to the adjustment of personal information as prescribed by law.”
Accordingly, the employer must notify in writing the social insurance agency when there is a change in information about participation in social insurance in the following cases:
- Report on labor increase:
+ Sign a new labor contract with a new employee
+ Employees return to work after taking sick leave or maternity leave from 14 working days in a month
+ The employee returns to work after the temporary suspension of the labor contract,
- Labor reduction notice:
+ Termination of labor contract
+ Postponement of labor contract
+ Employees apply for unpaid leave from 14 working days in a month.
What is the time limit for reporting an increase or decrease in labor according to Vietnamese regulations?
Pursuant to the provisions of Clause 2, Article 50 of Decision 595/QD-BHXH 2017, the time limit for reporting the increase or decrease in labor is:
“2. Responsibilities of employers and authorized collectors
2.1. Responsibilities of an employer:
a) Prepare documents, and pay insurance contributions and premiums in accordance with this document and relevant laws. In the cases where the employer fails to notify the social security authority of a decrease in the number of workers in a month, the employer shall pay health insurance premiums incurred in that month and the health insurance cards are valid until the end of the month.
b) Take legal responsibility for the preparation and retention of the participants’ documents and the employer’s documents.
c) Provide adequate information and documents about payment of insurance contributions and premiums and receipt of insurance benefits in case of changes or at the request of competent authorities or social security authorities.
d) Provide training for workers in regulations of law on insurance.
dd) Cooperate with social security authorities in the implementation of regulations of law on insurance.
2.2. Responsibilities of authorized collectors and schools
a) Follow instructions in this document; protect and use receipts provided by social security authorities and compare the receipts and amounts received.
b) Provide participants with information about insurance premiums, methods of payments, collectors, social insurance, and health insurance benefits.
c) Take legal responsibility for preparation and submission of the participants’ documents and insurance premiums.”
Accordingly, in case the unit makes a list of reports of a slow decrease, the unit must pay the health insurance premiums for the months reporting the slow decrease, and the health insurance card is valid until the end of those months.
According to Point 10.3, Section 10 of Official Dispatch 1734/BHXH-QLT in 2017 stipulating:
When there is a decrease, the unit will report the reduction from the 1st of the following month, however, the value of the next month's health insurance card must be paid. In case of not paying additional card value the following month, the unit can make a dossier to report the reduction of the following month starting from the 28th of the previous month, but after reporting the reduction, it is not allowed to report the arising of the previous month.
Vietnam: Does the enterprise need to report an increase in the number of employees participating in social insurance after signing employment contracts?
Penalties for late reporting increase or decrease in the number of employees according to Vietnamese regulations?
Pursuant to the provisions of Clause 4, Article 41 of Decree 12/2022/ND-CP on penalties for the late notice of increase in labor are as follows:
“Article 41. Violations against other regulations on social insurance and unemployment insurance
…
4. A fine ranging from VND 2.000.000 to VND 4.000.000 per employee but not exceeding VND 75.000.000 shall be imposed upon an employer for the commission of one of the following violations:
a) Failing to prepare and submit an application for participation in compulsory social insurance for employees within 30 days from the date of conclusion of the labor, employment or recruitment contract; failing to prepare and submit an application for participation in unemployment insurance for employees within 30 days after the labor or employment contract becomes effective;
b) Failing to compile the list of employees or failing to prepare applications or failing to submit applications within the prescribed time limits as specified in Clause 2 Article 102, Clause 1 Article 103, Clause 1 Article 110, Clause 2 Article 112 of the Law on Social Insurance, or Clause 1 Article 59, Clause 1 Article 60 of the Law on occupational safety and health;
c) Failing to recommend the employees prescribed in Article 47 of the Law on occupational safety and health and Article 55 of the Law on Social Insurance to receive a medical assessment of their work capacity reduction from authorized medical assessment councils;”
Accordingly, a fine ranging from VND 2,000,000 to VND 4,000,000 shall be imposed for each violation against each employee, but not exceeding VND 75,000,000 when the employer is late in reporting the increase in labor to the employee.
Pursuant to the provisions at Point 2.1, Clause 2, Article 50 of Decision 595/QD-BHXH in 2017, the enterprise will have to pay the health insurance premiums of the months reporting slow reduction if the employer reports a slow reduction in labor.
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