What are penalties for company for not finalizing the social insurance book in Vietnam?

In many cases, employees after quitting their jobs contact the old company to finalize the social insurance books, but the company does not or prolongs the time. So what are penalties for company for not finalizing the social insurance book in Vietnam?

What are penalties for company for not finalizing the social insurance book in Vietnam? (Source: Internet)

1. Responsibility for not finalizing the company's social insurance books for employees in Vietnam

According to Clause 5, Article 21 of Vietnam's Law on Social Insurance 2014, the employer has the following responsibilities:

To coordinate with social insurance agencies in returning social insurance books to and certifying periods of social insurance premium payment for employees who terminate labor contracts or working contracts or cease working in accordance with law.

Thus, the company is responsible for closing the social insurance book for the employee when terminating the labor contract.

2. Penalties for not finalizing the company's social insurance book in Vietnam

According to Clause 3, Article 39 of Decree 12/2022/ND-CP, if the employer fails to complete procedures for verification of payment of unemployment insurance premiums for employees so that they can complete their applications for unemployment insurance benefits as prescribed., the fines shall be as follows:

A fine ranging from VND 1.000.000 to VND 3.000.000 per employee, but not exceeding VND 75.000.000.

The above fine level applies to individuals. If organizations commit similar violation, the fine will be doubled.

From the above provisions, the company is responsible for closing the books for the employee when terminating the labor contract.

If there is an act of failing to close the social insurance book, they may be fined up to 6 million VND for each employee who is not allowed to close the social insurance book and not more than 150 million VND for the violating organization.

Quoc Dat

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