What are the penalties for making underpayment of wages for temporary work suspension to employees as prescribed by Vietnamese law?
According to the provisions of Clause 2, Article 16 of Decree 28/2020/ND-CP (Effective from April 15, 2020), the following penalties will be imposed for failing to make payment or making underpayment of wages for temporary work suspension to employees as prescribed by Vietnamese law:
a) A fine ranging from 5,000,000 to 10,000,000 to be imposed if the violation involves 01 – 10 employees;
b) A fine ranging from 10,000,000 to 20,000,000 to be imposed if the violation involves 11 – 50 employees;
c) A fine ranging from 20,000,000 to 30,000,000 to be imposed if the violation involves 51 – 100 employees;
d) A fine ranging from 30,000,000 to 40,000,000 to be imposed if the violation involves 101 – 300 employees;
dd) A fine ranging from 40,000,000 to 50,000,000 to be imposed if the violation involves 301 or more employees.
Additionally, Point a, Clause 5 of the aforementioned Article prescribes the remedial measures as follows:
The employer is required to fully repay wage and salary plus the amount of late payment interest calculated at the highest demand deposit interest rates publicly quoted by state-owned commercial banks on the date of imposition of such penalty for the violations specified in clauses 2 and 3 of this Article.
The above are the provisions regarding the penalties for failing to make payment or making underpayment of wages for temporary work suspension to employees as prescribed by Vietnamese law. For more information on this matter, you may refer to Decree 28/2020/ND-CP.
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