Significant Increase in Fines for Discriminatory Acts Against Rehired Employees

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To be specific: according to this Decree, a fine ranging from VND 1,000,000 to VND 3,000,000 will be imposed on the labor leasing party committing any of the following acts:

- Failing to inform or guide the leased laborer on the labor regulations and other rules of the enterprise;

- Discriminating in terms of working conditions against leased laborers as compared to the enterprise’s own employees.

Currently, according to Decree 95/2013/ND-CP, these acts are subject to a warning or a fine ranging from VND 500,000 to VND 1,000,000. Thus, Decree 28 has tripled the maximum fine for discrimination in working conditions against leased laborers compared to the enterprise’s own employees as previously stipulated in Decree 95.

Increasing the penalty for this act is extremely necessary because the current situation of discrimination between leased laborers and official employees of the enterprise is quite prevalent, significantly affecting the legitimate rights and interests of the leased laborers.

In addition, the above-mentioned fines also apply to labor leasing enterprises committing any of the following acts:

- Failing to keep records clearly stating the number of leased laborers, the labor leasing party, and the labor leasing fees;

- Failing to report the labor leasing situation as prescribed by law;

- Failing to publicly post the original license at the head office and certified copies of the license at branches and representative offices (if any);

- Failing to promptly report in case of incidents related to labor leasing activities to the competent state agency at the local level or upon request of the state labor management agency.

For more related content, refer to Decree 28/2020/ND-CP which comes into effect from April 15, 2020, replacing Decree 95/2013/ND-CP.

Nguyen Trinh

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