Vietnam: Is it possible to simultaneously apply the form of disciplinary action against employees with the extension of the salary increase period for employees?

Main Content

• What forms of labor discipline are there in Vietnam? 
• Can the employer both apply the form of labor discipline to extend the salary increase period and dismiss the employee in Vietnam? 
• What acts are strictly prohibited when handling labor discipline in Vietnam? 

What forms of labor discipline are there in Vietnam?

Pursuant to Article 117 of the Labor Code 2019 of Vietnam, it provides as follows:

Article 117. Labor discipline

Labor discipline comprises provisions in the internal labor regulations on compliance in respect of time, technology, production and business management that are imposed by the employer and prescribed by law.

Accordingly, labor discipline is a regulation issued by the employer to require employees to comply with time, technology and the management of production and business activities.

In Clause 2, Article 118 of the Labor Code 2019 of Vietnam stipulates as follows:

Article 118. Internal labor regulations

…

2. The contents of the internal labor regulations shall not be contrary to labor laws or to relevant legal provisions. The internal labor regulations shall include the following key contents:

a) Working hours and rest periods;

b) Order at the workplace;

c) Occupational safety and health;

d) Actions against sexual harassment in the workplace;

dd) Protection of the assets and technological and business secrets and intellectual property of the employer;

e) Cases in which reassignment of employees are permitted;

g) Violations against labor regulations and disciplinary measures;

h) Material responsibility;

i) The person having the competence to take disciplinary measures.

Accordingly, violations of labor discipline and sanctions for such acts will be specified by the employer in the internal working regulations.

Article 124 of the Labor Code 2019 of Vietnam stipulates as follows:

Article 124. Disciplinary measures

1. Reprimand.

2. Deferment of pay rise for up to 6 months.

3. Demotion.

4. Dismissal.

Thus, there will be all 4 forms of labor discipline applied: reprimand, extension of the salary increase period but not exceeding 06 months, dismissal and dismissal.

Vietnam: Is it possible to simultaneously apply the form of disciplinary action against employees with the extension of the salary increase period for employees?

Can the employer both apply the form of labor discipline to extend the salary increase period and dismiss the employee in Vietnam?

Pursuant to Article 122 of the Labor Code 2019 of Vietnam, it provides as follows:

Article 122. Principles and procedures for taking disciplinary measures at work

1. Disciplinary measures against an employee shall be taken in accordance with the following regulations:

a) The employer is able to prove the employee’s fault;

b) The process is participated in by the representative organization of employees to which the employee is a member;

c) The employee is physically present and has the right to defend him/herself, request a lawyer or the representative organization of employees to defend him/her; if the employee is under 15 years of age, his/her parent or a legal representative must be present;

d) The disciplinary process is recorded in writing.

2. It is prohibited to impose more than one disciplinary measure for one violation of internal labor regulations.

3. Where an employee commits multiple violations of internal labor regulations, he/she shall be subjected to the heaviest disciplinary measure for the most serious violation.

4. No disciplinary measure shall be taken against an employee during the period when:

a) The employee is taking leave on account of illness or convalescence; or on other types of leave with the employer’s consent;

b) The employee is being held under temporary custody or detention;

c) The employee is waiting for verification and conclusion of the competent agency for acts of violations, stipulated in Clause 1 and Clause 2 Article 125 of this Labor Code;

d) The employee is pregnant, on maternal leave or raising a child under 12 months of age.

5. No disciplinary measure shall be taken against an employee who commits a violation of internal labor regulations while suffering from the mental illness or another disease which causes the loss of consciousness ability or the loss of his/her behavior control.

6. The Government shall provide for the principles and procedures for taking disciplinary measures at work.

According to the above provisions, many forms of labor discipline must not be applied to employees in the same violation of labor discipline.

Therefore, in case of disciplining an employee's violation, the employer must not simultaneously dismiss and extend the employee's salary increase period.

What acts are strictly prohibited when handling labor discipline in Vietnam?

Pursuant to Article 127 of the Labor Code 2019 of Vietnam, which provides for prohibited acts when handling labor discipline as follows:

- Harming the employee's health, life, honor or dignity.

- Applying monetary fines or deducting the employee’s salary wage.

- 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.