What are regulations on Report on the status of labor utilization at enterprises in Vietnam?

What are regulations on report on the status of labor utilization at enterprises in Vietnam? (Illustrative photo)

 Form No. 05 - Declaration of labor utilization at the start of operations

 Form No. 07 - Report on changes in labor in the first/second half of the year

1. When must the report on labor utilization be conducted in Vietnam?

* Upon establishment

According to Article 6 of Circular 23/2014/TT-BLDTBXH guiding the implementation of some articles of Decree 03/2014/ND-CP detailing a number of articles of the Labor Code on employment, within 30 days from the start of operations, enterprises must declare their labor utilization in Vietnam at:

- The Department of Labor, War Invalids and Social Affairs where the head office, branch, or representative office is located; or- The Department of Labor, Invalids and Social Affairs where the head office, branch, or representative office is located for employers in industrial parks in Vietnam.

* During operation

Clause 2, Article 6 of Circular 23/2014/TT-BLDTBXH also stipulates that every 6 months and annually, enterprises must report changes in labor at:

- The Department of Labor, Invalids and Social Affairs where the head office, branch, or representative office is located; or- The Department of Labor, Invalids and Social Affairs where the head office, branch, or representative office is located for employers in industrial parks in Vietnam.

Thus, after establishment and during operation, enterprises must report labor utilization to the competent authority.

Note: From January 1, 2021, Labor Code 2019 takes effect, also requiring employers to declare labor utilization within 30 days from the start of operations and periodically report changes in labor during operation to the specialized labor agency of the provincial People's Committee and inform the social insurance agency (in Clause 2, Article 12 of the Labor Code 2019). From 2021, enterprises must report labor utilization not only to the specialized agency but also inform the social insurance agency.

2. Deadline for submitting the report on labor utilization in Vietnam

* Upon establishment

The deadline to submit the labor utilization declaration file is 30 days, from the start of operations.

* During operation

The deadline for submitting the labor utilization report is specified as follows:

- Report on labor utilization for the first half of the year: Deadline is May 25 annually;- Report on labor utilization for the second half of the year: Deadline is November 25 annually.

At this time, enterprises need to quickly complete the report on labor utilization for the second half of 2020 to submit before the upcoming November 25.

3. Labor utilization report dossier

* Upon establishment

Enterprises must prepare a labor utilization declaration dossier upon the start of operations, including specific documents as follows:

- Official Dispatch proposing the declaration of labor utilization;- Certified copy of the Business Registration Certificate;- Labor contracts concluded with workers;- Form No. 05 - Declaration of labor utilization at the start of operations.

* During operation

Enterprises need to prepare Form No. 07 - Report on changes in labor in the first/second half of the year.

4. Administrative penalties for not conducting labor utilization reports in Vietnam

According to Article 7 of Decree 28/2020/ND-CP which stipulates administrative penalties in the field of labor, social insurance, sending Vietnamese workers to work abroad under contracts, a fine ranging from 1,000,000 to 3,000,000 VND will be imposed on enterprises for any of the following acts:

- Failure to declare labor utilization as stipulated with the Department of Labor, Invalids and Social Affairs or the Department of Labor, Invalids and Social Affairs (for employers in industrial parks) where the head office, branch, or representative office is located;- Failure to report changes in labor to the Department of Labor, Invalids and Social Affairs or the Department of Labor, Invalids and Social Affairs (for employers in industrial parks) where the head office, branch, or representative office is located.

If an enterprise fails to report labor utilization as regulated, it will be fined up to 3 million VND.

Le Vy

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