If the company fines instead of disciplining, does the employee receive the principal amount back with interest?

Using fines and salary deductions instead of labor discipline is one of the prohibited acts stipulated in Clause 1, Article 128 of the Labor Code 2012.

According to Clause 3b and Clause 4a, Article 18 of Decree 28/2020/ND-CP:

If the employer uses fines or salary deductions instead of handling labor discipline, they may be fined from 10 million to 15 million VND.

Additionally, the violator must return the money collected or pay the full salary to the employee.

Please note: The above-mentioned fine is the amount applicable to individuals, and the fine for organizations is twice the amount applicable to individuals (Clause 1, Article 5 of Decree 28/2020/ND-CP).

Thus, in the case where the company imposes fines instead of handling labor discipline, the employee will get their original money back; however, they will not receive any interest.

Sincerely!