Do household businesses providing extra classes in Vietnam have the right to hire teachers for teaching?

Do household businesses providing extra classes in Vietnam have the right to hire teachers for teaching?

Under Clause 3, Article 4 of Circular 29/2024/TT-BGDDT (effective from February 14, 2025), the cases where extra classes in Vietnam are not allowed are:

Cases where extra classes in Vietnam are not allowed

1. Extra classes for primary school students must not be organized, except in cases of training in arts, sports, and life skills.

2. Teachers currently teaching at schools are not allowed to offer external extra classes with fees to their students according to the school's educational plan.

3. Teachers from public schools are not allowed to participate in managing or operating external extra classes but may be involved in teaching extra classes.

Additionally, according to Article 19 of the Law on Public Employees 2010, the specific provisions are as follows:

 Prohibited acts for public employees

1. Shirking responsibility or refusing to discharge assigned work or tasks; sowing factionalism and disunity: quitting jobs arbitrarily: going on strike.

2. Illegally using assets of agencies, organizations, units and the people in contravention of law.

3. Discriminating in any form against nationality, gender, social strata, beliefs and religions.

4. Taking advantage of professional activities to conduct propaganda against the line and policies of the Party and the laws of the State or to the detriment of the fine traditions and customs and cultural and spiritual life of the people and society.

5. Hurting the honor, dignity and prestige of others when carrying out professional activities.

6. Other prohibitions as provided by the Law Against Corruption, the Law on Thrift Practice and Wastefulness Combat and other relevant laws.

There are no regulations prohibiting or restricting teachers from working part-time outside school hours.

Thus, household businesses providing extra classes in Vietnam can hire teachers to teach students.

Do household businesses providing extra classes in Vietnam have the right to hire teachers for teaching? (Image from the Internet)

What is the fee rate for registering a household business providing extra classes in Vietnam?

Under point g, clause 2, Article 5 of Circular 85/2019/TT-BTC, the business registration fee is a charge collected by the competent state authority when issuing the certificate of household business, cooperative, or cooperative union registration, including certificates of branch, representative office, and business location registration of these organizations.

Furthermore, according to clause 7, Article 3 of Circular 85/2019/TT-BTC, the list of fees under the jurisdiction of the provincial People's Council is stipulated as follows:

(i) Fee for residence registration (implemented by the local authority).

(ii) Fee for issuing identity cards (implemented by the local authority).

(iii) Civil status fees.

(iv) Fee for issuing work permits for foreigners working in Vietnam (issued by the local authority).

(v) Fee for issuing certificates of land use rights, ownership of houses, and assets attached to land.

(vi) Construction permit fee.

(vii) Business registration fee.

The business registration fee (or the fee for establishing a household business) is a charge when the competent authority issues a certificate of household business registration, cooperative registration, or registration of a branch of a cooperative. The fee rate is decided by the provincial People's Council. Therefore, each province will have a different fee.

What are the penalties imposed on teachers engaging in extra classes without business registration in Vietnam?

According to Article 6 of Circular 29/2024/TT-BGDDT, teachers engaging in external extra classes must make business registration. Specifically, teachers must publicly disclose information about the subjects, schedule, location, organizational form, list of teachers, and fees of extra classes on a web portal or at the extra class center.

Business registration for extra classes is mandatory and can be conducted in two forms: household business or company.

If teachers fail to make business registration for extra classes, they may face legal penalties as follows:

- For failing to make household businesses registration (Clause 1 Article 62 of Decree 122/2021/ND-CP):

+ A fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for:

+ Individuals or family members registering multiple household businesses.

+ Failing to register a household business in mandatory cases.

+ Failing to update the Household Business Registration Certificate within 10 days from the date of change.

Note: This fine applies to individuals, while organizations will incur double the fine of individuals (Clause 2 Article 4 Decree 122/2021/ND-CP).

- For failing to make enterprise registration (Clause 4 Article 46 of Decree 122/2021/ND-CP):

+ A fine ranging from VND 50,000,000 to VND 100,000,000 shall be imposed for conducting business under a company form without registration or continuing business after the Certificate of Enterprise Registration has been revoked.

Note: This fine applies to organizations, while individuals will incur half the fine amount of organizations (Clause 2 Article 4 Decree 122/2021/ND-CP).

Therefore, teachers engaging in extra classes without household business registration will face a fine ranging from VND 5 million to VND 10 million. In case of engaging in extra classes without enterprise registration, the fine for individuals will range from VND 25 million to VND 50 million, and for organizations, from VND 50 million to VND 100 million.