Can companies handle violation which is not stipulated in the internal labor regulations in Vietnam?

Can companies handle violation which is not stipulated in the internal labor regulations in Vietnam?

Pursuant to Article 127 of the Labor Code 2019 stipulates forbidden actions when imposing disciplinary measures in the workplace, according to which:

1. Harming the employee's health, life, honor or dignity.

2. Applying monetary fines or deducting the employee’s salary wage.

3. 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.

According to this Article, even though you have violated, but your violation is not specified in the internal labor regulations in Vietnam, the company is not allowed to handle labor discipline against you.

What are penalties for imposing a disciplinary measure against an employee for a violation which is not stipulated in the internal labour regulations in Vietnam?

In Clause 3, Article 19 of Decree 12/2022/ND-CP stipulates as follows:

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 labour regulations or employment contract or labour 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 Labour Code.

In Clause 1, Article 6 of Decree 12/2022/ND-CP stipulates as follows:

1. The fines for administrative violations prescribed in Chapter II, Chapter III and Chapter IV of this Decree shall be imposed upon violating individuals, except the fines in Clauses 1, 2, 3, 5 Article 7, Clauses 3, 4, 6 Article 13, Clause 2 Article 25, Clause 1 Article 26, Clauses 1, 5, 6, 7 Article 27, Clause 8 Article 39, Clause 5 Article 41, Clauses 1 through 12 Article 42, Clauses 1 through 8 Article 43, Clauses 1 through 6 Article 45, Clause 3 Article 46 of this Decree. The fine imposed upon an organization is twice as much as that imposed upon an individual for committing the same administrative violation.

Thus, when the company still conducts labor discipline with violations that are not in the internal labor regulations in Vietnam, the company will be fined from 40,000,000 to 80,000,000 VND.

When is effect of internal labor regulations from the day on which the satisfactory application is received by a competent authority in Vietnam?

According to Article 121 of the 2019 Labor Code, effect of internal labor regulations is as follows:

The internal labor regulations shall start to have effect after 15 days from the day on which the satisfactory application is received by a competent authority as prescribed in Article 119 of this Labor Code.

The effect of the written internal labor regulations issued by an employee that has fewer than 10 employees shall be decided by the employer.

With the above provisions in Vietnam, the internal labor regulations will take effect after 15 days from the day on which the satisfactory application is received by a competent authority.

Best Regards!