Company Suspension of Business Operations: Right or Wrong?
According to the provisions at Point b, Clause 2, Article 106 of the Labor Code 2012, the law stipulates that the employer must ensure that the employee's overtime hours do not exceed 50% of the normal working hours in one day; in the case of applying the weekly working regulations, the total normal working hours and overtime hours must not exceed 12 hours in one day, not exceed 30 hours in one month, and the total must not exceed 200 hours in one year, except for some special cases prescribed by the Government of Vietnam, where the overtime must not exceed 300 hours in one year;
In the case where the employer requires the employee to work overtime beyond the hours stipulated above, they shall be fined from 25,000,000 VND to 50,000,000 VND as prescribed in Clause 4, Article 14 of Decree 95/2013/ND-CP.
Therefore: The company was fined 40,000,000 VND for the violation of mobilizing employees to work overtime exceeding the hours stipulated at Point b, Clause 2, Article 106 of the Labor Code 2012, which is in accordance with legal regulations.
Moreover, Clause 5, Article 14 of Decree 95/2013/ND-CP stipulates:
"Article 14. Violations of regulations on working hours and rest hours
...
5. Additional sanction: Suspension of operations from 01 month to 03 months for employers who violate the provisions of Clause 4 of this Article."
Thus: Based on the provisions quoted above, if the employer violates the regulations at Point b, Clause 2, Article 106 of the Labor Code 2012, aside from being fined 25,000,000 VND to 50,000,000 VND, they will also be subject to an additional penalty of suspension of operations from 01 month to 03 months.
Therefore: The case of your company being fined 40,000,000 VND and having its business activities suspended for 02 months due to violations of the provisions at Point b, Clause 2, Article 106 of the Labor Code 2012 is in line with legal regulations.
The above reflects our advisory opinion on the issue you have inquired about.
Respectfully!
