Monetary Fine for Enterprises Not Signing Labor Contracts When Employees Continue to Work After the Probation Period

14:45, 10/07/2024

Decree 28/2020/ND-CP Regulating Administrative Penalties in the Fields of Labor, Social Insurance, and Sending Vietnamese Workers Abroad Under Contracts, Effective from April 15, 2020, Replacing Decree 95/2013/ND-CP.

No Labor Contract Signed After the Probationary Period

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This Decree stipulates that fines ranging from 2,000,000 VND to 5,000,000 VND will be imposed on employers committing any of the following acts:

- Requiring an employee to undergo probation more than once for the same job;

- Extending the probationary period beyond the regulated time;

- Paying probationary wages to employees that are less than 85% of the wages for that job;

- When the probationary period ends, if the employee continues to work without the employer entering into a labor contract with the employee.

Thus, it can be seen that from the effective date of this Decree (i.e., April 15, 2020), if the probationary period ends and the employee continues to work without the employer entering into a labor contract with the employee, the employer will be fined from 2,000,000 VND to 5,000,000 VND. This provision has been set forth in Decree 88/2015/ND-CP amending and supplementing Decree 95/2013/ND-CP and is now reaffirmed in Decree 28/2020/ND-CP.

Additionally, this Decree further clarifies that in addition to being fined, in this scenario, the employer is obligated to pay the full wages of the job to the employee and must enter into a labor contract with the employee.

Note, the aforementioned fine is applicable to individual employers. In cases where the employer is an organization, the fine will be twice that for individuals, ranging from 4,000,000 VND to 10,000,000 VND.

For more related content, see HERE.

Nguyen Trinh

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