Fine up to VND 30 million for Enterprises Applying Multiple Disciplinary Actions for a Single Act

This is a newly added provision in Decree 28/2020/ND-CP regulating administrative penalties in the fields of labor, social insurance, and sending Vietnamese workers to work abroad under contract, effective from April 15, 2020, replacing Decree 95/2013/ND-CP.

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To be specific, Clause 3 Article 18 Decree 28 stipulates that a fine ranging from 10,000,000 VND to 15,000,000 VND shall be imposed on the employer for engaging in any of the following acts:

- Violating the body or dignity of the employee when handling labor discipline without reaching the level to prosecute criminal liability;

- Using forms of fines, salary deductions instead of handling labor discipline;

- Disciplining an employee for violations not specified in the labor regulations;

- Applying multiple forms of labor discipline for a single labor discipline violation.

Thus, from April 15, 2020, an individual employer who applies a form of labor discipline for a single labor discipline violation of the employee shall be fined from 10,000,000 VND to 15,000,000 VND. For employers who are organizations, the fine will be twice the aforementioned amount, specifically, the fine will range from 20,000,000 VND to 30,000,000 VND.

Additionally, this Decree also stipulates that for the following acts, an individual employer will be fined from 5,000,000 VND to 10,000,000 VND:

- Not having written labor regulations when employing 10 or more employees;

- Not registering labor regulations with the provincial labor management authority;

- Using labor regulations that are not in effect or have expired;

- Handling labor discipline, compensating damages not in accordance with the prescribed procedures, orders, timeliness as stipulated by law;

- Temporarily suspending work of an employee not conformable with law.

Note, for employers who are organizations, the fine will be twice the amount imposed on individual employers.

Nguyen Trinh

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