Vietnam: What is the administrative penalty imposed upon the employer for failing to apply written internal labor regulations when employing 10 employees or more?

Main Content

• Is an employer that has at least 10 employees required to have written internal labor regulations?
• How much is the administrative penalty imposed upon the employer for failing to apply written internal labor regulations when employing 10 employees or more?
• What are the contents of the internal labor regulations in Vietnam?

Is an employer that has at least 10 employees required to have written internal labor regulations?

According to Clause 1, Article 118 of the 2019 Labor Code of Vietnam on the internal labor regulations as follows:

Internal labor regulations in Vietnam

1. Every employer shall issue their own internal labor regulations. An employer that has at least 10 employees shall have written internal labor regulations.

Thus, according to regulations, every employer shall issue their own internal labor regulations. An employer that has at least 10 employees shall have written internal labor regulations.

Vietnam: What is the administrative penalty imposed upon the employer for failing to apply written internal labor regulations when employing 10 employees or more? (Image from the Internet)

How much is the administrative penalty imposed upon the employer for failing to apply written internal labor regulations when employing 10 employees or more?

According to Article 19 of Decree No. 12/2020/ND-CP, violations against regulations on labor discipline and material responsibility are prescribed as follows:

Violations against regulations on labor discipline and material responsibility

1. A fine ranging from VND 1.000.000 to VND 3.000.000 shall be imposed upon an employer for failing to make internal labor regulations publicly available to their employees or failing to post the major contents of the internal labor regulations at necessary sites at the workplace.

2. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed upon an employer for commission of one of the following violations:

a) Failing to apply written internal labor regulations when employing 10 employees or more;

b) Failing to follow procedures for registration of internal labor regulations as prescribed by law;

c) Failing to consult with the internal representative organization of employees (if any) before issuing or revising the internal labor regulations;

d) Applying the internal labor regulations which have not been yet in effect or have become null and void;

dd) Failing to follow processes, procedures and time limits set out in law when implementing disciplinary measures at work or paying compensation for damage;

e) Suspending employees from work for a duration exceeding the maximum suspension period prescribed by law;

g) Before suspending employees from work, failing to consult with the internal representative organization of employees to which the employee is a member.

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 labor regulations or employment contract or labor 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 Labor 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.

Employers failing to apply written internal labor regulations when employing 10 employees or more may be subject to an administrative fine of up to VND 10,000,000.

What are the contents of the internal labor regulations in Vietnam?

Pursuant to Clause 2, Article 118 of the 2019 Labor Code of Vietnam on the internal labor regulations as follows:

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:

- Working hours and rest periods;

- Order at the workplace;

- Occupational safety and health;

- Actions against sexual harassment in the workplace;

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

- Cases in which reassignment of employees are permitted;

- Violations against labor regulations and disciplinary measures;

- Material responsibility;

- The person having the competence to take disciplinary measures.