Conditions for administrative penalties to be imposed upon an organization in Vietnam

Conditions for administrative penalties to be imposed upon an organization in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What are administrative sanctions?

According to Clause 2, Article 2 of the Law on Handling Administrative Violations 2012, the administrative sanctions includes application of sanction forms, remedial measures with respect to individuals, organizations committing acts of administrative violations according to provisions of law on administrative sanctions which are implemented by the competent persons

2. Conditions for administrative penalties to be imposed upon an organization in Vietnam

According to Clause 2, Article 3 of Decree 118/2021/ND-CP, administrative penalties will be imposed upon an organization if the following conditions are fully satisfied:

- The organization is a juridical person under regulations of civil laws or other organizations are established as prescribed by laws;

- Administrative violations are committed by representatives, people appointed to act on the organization’s behalf or people committing violations under direction, control, assignment and approval of organizations and these violations prescribed in decrees on administrative penalties in various state management fields.

3. Limitation periods for issuance of administrative sanction decisions in Vietnam

Limitation periods for issuance of administrative sanction decisions according to Article 66 of the Law on Handling Administrative Violations 2012 (amended 2020) is as follows:

- Limitation periods for issuance of administrative sanction decisions shall be regulated as follows:

= For the cases or matters not covered by points b and c of this clause, the limitation period for issuing a sanction decision shall be 07 working days from the date of making a written record of administrative violation;

For cases or matters where files thereof must be transferred to persons having sanctioning authority, the limitation period for issuing a sanction decision shall be 10 working days from the date of making a written record of administrative violation, except as prescribed in clause 3 of Article 63 of the Law on Handling Administrative Violations 2012;

= As for cases and matters in which individuals or organizations request explanations or verification of relevant facts and details specified in Article 59 of the Law on Handling Administrative Violations 2012, the limitation period for issuance of a sanction decision shall be 1 month from the date of making and issuing an administrative violation record;

= As for cases and matters covered by point b of this clause, if they are extremely serious, involve complicated facts and details, need more time to carry out further verification and collection of evidence, the limitation period for issuance of a sanction decision shall be 02 months from the date of making and issuing an administrative violation record.

- If persons having authority to sanction administrative violations, involved individuals and organizations defer issuing sanction decisions after expiry of the limitation period through their fault, they shall be sanctioned under laws

4. Issuance of decisions on sanctioning administrative violations in Vietnam

According to Article 67 of the Law on Handling Administrative Violations 2012, the issuance of decisions on sanctioning administrative violations is as follows:

- In case one individual, organization committing many acts of administrative violations and being sanctioned at the same time, just one sanctioning decision is made, in which defining forms, levels of sanctions for each act of administrative violations.

- In case many individuals, organizations committing an act of administrative violations, 01 or more sanctioning decisions can be made to define sanctioning forms, levels for each individual, organization.

- In case many individuals, organizations committing many different administrative violations in the same violation case, 01 or more sanctioning decisions can be made to decide sanctioning forms, levels for each violating act of each individual, organization.

- Sanctioning decisions take effect from the date of signing, unless the different effective date provided in decisions

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