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FINES ACCORDING TO VIOLATIONS IN LABOR LAW

FINES ACCORDING TO VIOLATIONS IN LABOR LAW

VIVA BUSINESS CONSULTING là công ty tư vấn doanh nghiệp được tín nhiệm bởi hằng ngàn khách hàng danh tiếng từ năm 2006. VIVA cung cấp nền tảng quản lý toàn diện và nguồn lực thực thi theo cách kết hợp đồng thời của: Luật pháp và thủ tục hành chính trong kinh doanh – Quản lý thuế và kế toán – Quản trị quan hệ lao động – Quản trị tài chính doanh nghiệp – Quản trị và kiểm soát nội bộ. Năng lực của chúng tôi giúp khách hàng lường trước các rủi ro, tối ưu chi phí, kiến tạo lợi thế kinh doanh.

VIVA is a business consulting company, specializes in business compliance procedures according to local business laws and regulations since 2006. VIVA has been continuously trusted by thousands of well-known clients since 2006. We are creating added value for clients by offering one-stop business platform with exclusive and tailored-made services related to market entry and mandatory business compliances. We keep our client’s good standing in lawful and optimal manners whenever they are working and doing business in Vietnam.

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Current labor regulations aim to setting up fair relationship between employers and employees, however, practically most of the terms and conditions are protecting for rights and interests of employees.

Because of international agreements between Vietnam and global economies, there will be more new labor regulations that may increasing the rights and interest of employers… anyway, the employers shall protect themselves by strongly labor management policies and process, once the employers can do right things first time, they are not only protected but also more efficiency in training – build up – using the labor asset.

THE LABOR RELATIONSHIP INCLUDES KEY TYPICAL TYPES

  1. The relationship between employers and employees
  2. The relationship between employers and other labor competence state agencies.
  3. The relationship between employers and tax agencies.
  4. The relationship between employers and customers, banks, auditors, credit report firms…

We would like to share some key compliance requirements and the fines according to the violations.

VIOLATIONS AGAINST THE REGULATIONS ON LABOR CONTRACT CONCLUSION

When committing one of the following acts: failing to conclude written labor contracts for permanent jobs that last for more than 3 months; failing to conclude the right types of contracts with workers according to Article 22 of the Labor Code, the employer shall be liable to:

  • A fine of from 500,000 VND to 2,000,000 VND, if the violation concerns 01 – 10 workers.
  • A fine of from 2,000,000 VND to 5,000,000 VND, if the violation concerns 11 – 50 workers.
  • A fine of from 5,000,000 VND to 10,000,000 VND, if the violation concerns 51 – 100 workers.
  • A fine of from 10,000,000 VND to 15,000,000 VND, if the violation concerns 101 – 300 workers.
  • A fine of from 15,000,000 VND to 20,000,000 VND, if the violation concerns 301 workers or more.

The employer shall be liable to a fine of from 20,000,000 VND to 25,000,000 VND when committing one of the following acts:

  • Keeping the original copies of ID papers, qualifications and certificates of workers;
  • Forcing workers to put up money or other assets as collateral for the execution of labor contracts.

VIOLATIONS AGAINST LABOR REGULATIONS ON PROBATION

The employer shall be liable to a fine of from 500,000 VND to 1,000,000 VND if seasonal workers are requested to undergo probation.

The employer shall be liable to a fine of from 2,000,000 VND to 5,000,000 VND when committing one of the following violations

  • Requesting workers to undergo more than 01 probation.
  • The probation extends beyond the permissible length.
  • Paying the workers under probation lower than 85% of the official wages.

VIOLATIONS AGAINST THE LABOR REGULATIONS ON LABOR CONTRACT EXECUTION

The employer shall be liable to a fine of from 500,000 VND to 1,000,000 VND if they fail to notify the worker in writing at least 15 days prior to the expiration date of the fixed-term labor contract.

The employer shall be liable to a fine of from 3,000,000 VND to 7,000,000 VND when committing one of the following acts:

  • Assigning the worker to work at another location than that agreed in the labor contract, except for the cases in Article 31 of the Labor Code.
  • Refusing to re-employ the worker after the end of the labor contract suspension, unless otherwise agreed by the employer and the worker.

VIOLATIONS AGAINST AMENDING AND TERMINATING LABOR CONTRACTS

When committing one of the following acts: failing to provide or sufficiently provide the severance pay, redundancy pay to the worker within the deadline prescribed in Clause 2 Article 47 of the Labor Code; failing to complete the procedure for certifying and returning other papers to the worker after the labor contract is terminated, according to Clause 3 Article 47 of the Labor Code, the employer shall be liable to:

  • A fine of from 500,000 VND to 2,000,000 VND, if the violation concerns 01 – 10 workers.
  • A fine of from 2,000,000 VND to 5,000,000 VND, if the violation concerns 11 – 50 workers.
  • A fine of from 5,000,000 VND to 10,000,000 VND, if the violation concerns 51 – 100 workers.
  • A fine of from 10,000,000 VND to 15,000,000 VND, if the violation concerns 101 – 300 workers.
  • A fine of from 15,000,000 VND to 20,000,000 VND, if the violation concerns 301 workers or more.

VIOLATIONS AGAINST LABOR REGULATIONS ON PROVISION OF VOCATIONAL TRAINING AND REFRESHER COURSES

The employer shall be liable to a fine of from 500,000 VND to 1,000,000 VND when committing one of the following acts:

  • Failing to make and implement annual plans for providing vocation training and refresher courses for their workers.
  • Failing to report the result of vocational training and refresher courses to the provincial labor relations authority in the annual labor report.

When committing one of the following acts: failing to provide vocational training workers before reassigning them; failing to sign training contracts with apprentices; failing to pay apprentices for their training period during which they directly produce or participate in the production of qualified products; failing to sign labor contracts with apprentices after the end of the apprenticeship, the employer shall be liable to:

  • A fine of from 500,000 VND to 2,000,000 VND if the violation concerns 01 – 10 workers.
  • A fine of from 2,000,000 VND to 5,000,000 VND if the violation concerns 11 – 50 workers.
  • A fine of from 5,000,000 VND to 10,000,000 VND if the violation concerns 51 – 100 workers.
  • A fine of from 10,000,000 VND to 15,000,000 VND if the violation concerns 101 – 300 workers.
  • A fine of from 15,000,000 VND to 20,000,000 VND if the violation concerns 301 workers or more.

The employer shall be liable to a fine of from 20,000,000 VND to 25,000,000 VND when committing one of the following acts:

  • Taking advantage of vocational training to seek profit, exploit workers, or forcing apprentices to commit illegal acts
  • Recruiting people under 14 years of age as apprentices

VIOLATIONS AGAINST  ON COLLECTIVE BARGAINING AGREEMENT

The employer shall be liable to a fine of from 500,000 VND to 1,000,000 VND when committing one of the following acts:

  • Failing to send the collective bargaining agreement to the provincial labor relations authority.
  • Failing to pay the cost of negotiation, conclusion, amendment, and sending, and announcement of the collective bargaining agreement;
  • Failing to inform workers of the contents of the collective bargaining agreement.

The employer shall be liable to a fine of from 3,000,000 VND to 5,000,000 VND when committing one of the following acts:

  • Failing to provide information about the production and business at the request of the worker collective to open collective bargaining.
  • Failing to open collective bargaining to conclude or amend the collective bargaining agreement on request.
  • The employer shall be liable to a fine of from 10,000,000 VND to 15,000,000 VND when applying a collective bargaining agreement that is declared null and void.

VIOLATIONS AGAINST LABOR REGULATIONS ON WAGES

The employer shall be liable to a fine of from 500,000 VND to 1,000,000 VND when failing to report the pay scale, payroll, and work limits to the labor relations authority of the district.

The employer shall be liable to a fine of from 2,000,000 VND to 5,000,000 VND when committing one of the following acts:

  • Failing to establish the pay scale, payroll, work limits, and reward scheme in accordance with law.
  • Failing to consult the representative of workers when establishing the pay scale, payroll, work limits, and reward scheme.
  • Failing to announce the pay scale, payroll, work limit, and reward scheme at the workplace.
  • Failing to notify the method of wage payment to workers at least 10 days before the payment is made.

When committing one of the following acts: failing to pay wages on time according to Article 96 of the Labor Code; paying wages at a lower rate than that in the pay scale or payroll sent to the labor relations authority of the district; paying for overtime work or night shift at a lower rate that than prescribed in Article 97 of the Labor Code; deducting wages of workers in contravention of Article 101 of the Labor Code; failing to provide severance pay for workers according to Article 98 of the Labor Code, the employer shall be liable to:

  • A fine of from 5,000,000 VND to 10,000,000 VND, if the violation concerns 01 – 10 workers.
  • A fine of from 10,000,000 VND to 20,000,000 VND, if the violation concerns 11 – 50 workers.
  • A fine of from 20,000,000 VND to 30,000,000 VND, if the violation concerns 51 – 100 workers.
  • A fine of from 30,000,000 VND to 40,000,000 VND, if the violation concerns 101 – 300 workers.
  • A fine of from 40,000,000 VND to 50,000,000 VND, if the violation concerns 301 workers or more.

When paying their workers at a lower rate than the minimum wages decided by the Government, the employer shall be liable to:

  • A fine of from 20,000,000 VND to 30,000,000 VND, if the violation concerns 01 – 10 workers.
  • A fine of from 30,000,000 VND to 50,000,000 VND, if the violation concerns 11 – 50 workers.
  • A fine of from 50,000,000 VND to 75,000,000 VND, if the violation concerns 51 workers or more.

VIOLATIONS AGAINST LABOR REGULATIONS ON HOURS OF WORKS AND REST

The employer shall be liable to a fine of from 2,000,000 VND to 5,000,000 VND when failing to grant workers sufficient rest breaks during working hours and between shifts, personal leaves, and unpaid leaves as prescribed.

When committing violations against regulations on weekly rest, annual leave and holidays, the employer shall be liable to:

  • A fine of from 500,000 VND to 1,000,000 VND, if the violation concerns 01 – 10 workers.
  • A fine of from 1,000,000 VND to 3,000,000 VND, if the violation concerns 11 – 50 workers.
  • A fine of from 3,000,000 VND to 7,000,000 VND, if the violation concerns 51 – 100 workers.
  • A fine of from 7,000,000 VND to 10,000,000 VND, if the violation concerns 101 – 300 workers.
  • A fine of from 10,000,000 VND to 15,000,000 VND, if the violation concerns 301 workers or more.

The employer shall be liable to a fine of from 20,000,000 VND to 25,000,000 VND when committing one of the following acts:

  • Imposing more hours of work than the hours prescribed in Article 104 of the Labor Code;
  • Mobilizing workers to work overtime without their consent, except for the cases in Article 107 of the Labor Code.

The employer shall be liable to a fine of from 25,000,000 VND to 50,000,000 VND when mobilizing workers to work overtime more than the maximum working hours prescribed in Point b Clause 2 Article 106 of the Labor Code, or more than 12 hours in a day during holidays and weekends.

VIOLATIONS AGAINST ON LABOR DISCIPLINE AND RESPONSIBILITY

The employer that fails to announce or post the labor regulation at proper places at the work place shall be liable to a fine of from 500,000 VND to 1,000,000 VND.

The employer shall be liable to a fine of from 5,000,000 VND to 10,000,000 VND when committing one of the following acts:

  • Failing to make a written labor regulation when 10 workers or more are employed.
  • Using a labor regulation that is not registered with the provincial labor relations authority;
  • Using an expired labor regulation.

The employer shall be liable to a fine of from 10,000,000 VND to 15,000,000 VND when committing one of the following acts:

  • Committing physical or mental assaults against workers when taking disciplinary actions;
  • Imposing fines or salary cut as disciplinary actions;
  • Impose penalties against the violations that are not mentioned in the labor regulation.

VIOLATIONS AGAINST ON FOREIGN WORKERS IN VIETNAM

Foreign workers in Vietnam shall be expelled when committing one of the following acts:

  • Working without work permits, except for the cases in which the work permit is exempt;
  • Using an expired work permit.

When employing foreign workers without work permits (except for the cases in which the work permit is exempt) or using expired work permits, the employer shall be liable to:

  • A fine of from 30,000,000 VND to 45,000,000 VND, if 01 – 10 workers are employed;
  • A fine of from 45,000,000 VND to 60,000,000 VND, if 11 – 20 workers are employed;
  • A fine of from 60,000,000 VND to 75,000,000 VND, if 21 workers or more are employed;

ABOUT VIVA BUSINESS CONSULTING

VIVA is the local expertise for local business compliance procedures, has been trusted by thousands of foreign investors, multinational companies from Europe, Japan, Singapore, India, Korea, USA… for the required business compliance procedures by local laws and regulations since 2006.

Thanks for consistent of practice expertise in Business laws - Employment relations – Tax and accounting – Corporate finance – Corporate services,  VIVA has been successfully providing service for thousands of leading companies in such industries: Garment, energy, pharma, advertising, agricultural…

VIVA keeps its signature by offering one-stop business platform with regard to market entry and the mandatory business compliances. We ensure for our client’s good standing, in lawful and optimal manners whenever they are working and doing business in Vietnam.

 

VIVA not only manage business required procedures by laws but firstly places client’s compliance and good standing, in the optimal methods when offering any solution, and integrated with our intensive resources that allow us to prevent most of the risks in advance, create more benefits, advantages and business inspiration for entrepreneurs.

The insights and consistent backgrounds in Business Laws – Accounting and Corporate Finance – Tax Management – Labor Relations and Payroll – Serectarial and consistent with our exclusive standard operation processes, consisting of consultation – implementation – pratice operation help us fully protect client interests as one-stop solution.

YOU WILL RECEIVE

“If you ask any successful businessperson, they will always have had a great mentor at some point along the road.”

 

 

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