Non-payment of Social Insurance for Domestic Workers, Homeowners Fined up to 15 Million VND

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Decree 28 stipulates that if the employer does not pay social insurance and health insurance premiums to the domestic helper in accordance with the law so that the worker can handle their own insurance, they will be fined from VND 10,000,000 to VND 15,000,000, and at the same time, they will be compelled to pay the full amount of social insurance and health insurance for the domestic helper. This is a new regulation added in Decree 28/2020/ND-CP. Currently, Decree 95/2013/ND-CP and Decree 88/2015/ND-CP do not prescribe penalties for this act.

To be specific, Point b Clause 2 Article 29 of Decree 28 stipulates the penalty for violations of regulations on domestic helpers as follows:

Article 29. Violations of regulations on domestic helpers

2. A fine from VND 10,000,000 to VND 15,000,000 shall be imposed on an employer who commits one of the following acts:

b) Failing to pay the domestic helper social insurance and health insurance premiums in accordance with the law for the worker to handle their own insurance.

The above-mentioned penalty also applies to employers who retain the original identity documents of the domestic helper; employ the elderly for heavy, harmful, and dangerous work that adversely affects their health.

In addition, this Decree also stipulates a warning for employers who commit one of the following acts:

- Failing to sign a written labor contract with the domestic helper;

- Failing to pay transportation costs when the domestic helper finishes work and returns to their place of residence, except in the case that the domestic helper terminates the labor contract prematurely.

Besides the warning, the employer is also required to sign a written labor contract with the domestic helper for failing to sign such a contract, and to pay the full transportation costs for the domestic helper when finishing work and returning to their place of residence for failing to do so.

For detailed contents of Decree 28/2020/ND-CP, our esteemed Customers and Members can view HERE.

Nguyen Trinh

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