What are the penalties for making underpayment of overtime pay to employees as stipulated by Vietnamese law?
According to the provisions in Clause 2, Article 16 of Decree 28/2020/ND-CP (Effective April 15, 2020), the following penalties for failing to make payment or making underpayment of overtime pay to employees as stipulated 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 is the content regarding the penalties for failing to make payment or making underpayment of overtime pay to employees as stipulated by Vietnamese law. For more information on this issue, you can refer to Decree 28/2020/ND-CP.
Sincerely!
