Which Cases of Enterprise Evasion of Social Insurance and Health Insurance Are Not Subject to Criminal Prosecution?

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To be specific, in Clause 1, Article 5 of Resolution 05/2019/NQ-HDTP, it is stipulated:

"1. For acts of evading social insurance contributions, health insurance, and unemployment insurance performed before 12:00 AM on January 1, 2018, criminal prosecution shall not be applied according to Article 216 of the Criminal Code but shall be handled as follows:

a) In cases where administrative sanctions have not been imposed and the statute of limitations for administrative sanctions has not expired, the competent authority shall consider imposing administrative sanctions.

b) In cases where administrative sanctions have been imposed but the sanctioned individual or organization deliberately avoids or delays the execution, the statute of limitations for executing the administrative sanction decision shall be determined according to Clause 2, Article 74 of the Law on Handling Administrative Violations. The enforcement and coercive execution of this administrative sanction decision shall be carried out according to the laws on enforcement and coercion of execution of administrative sanction decisions.

c) In cases that cause damage to employees, the social insurance agency, or other organizations or individuals, the harmed parties may file a lawsuit to claim extra-contractual compensation from the violators according to the provisions of civil procedural laws."

Thus, cases of evasion of social insurance contributions will be criminally prosecuted under the provisions of Article 216 of the Criminal Code 2015. However, if the act of evading social insurance contributions occurred before 12:00 AM on January 1, 2018, it will not be criminally prosecuted but will be subject to administrative sanctions and extra-contractual compensation according to civil procedural laws if the evasion causes damage to employees.

Duy Thinh

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