Increased penalties for administrative violations related to labor and wages, effective January 17, 2022.

Decree 12/2022/ND-CP, which stipulates administrative penalties for violations in the fields of labor, social insurance, and Vietnamese workers going to work abroad under contract, was issued and came into effect on January 17, 2022. Accordingly, the following points are noteworthy:

1. A fine of VND 01-03 million will be imposed for each employee in violation, but not exceeding VND 75 million, on employers who fail to complete the procedures for confirming unemployment insurance contributions for employees to finalize unemployment insurance benefit applications.

The previous regulation stipulated a fine of 500.000 to 01 VND.

2. A fine of 5-10 million VND (currently 2-5 million VND) will be imposed on employers who commit any of the following acts:

• Failure to publicly disclose at the workplace before implementation: salary scales, wage tables; labor standards; bonus regulations;
• Failure to consult with the employee representative organization at the workplace (in cases where such an organization exists) when establishing wage scales, salary tables; labor norms; and bonus regulations;
• Do not establish salary scales, wage tables, or labor standards. No trial period for labor standards will be applied before official implementation;
• Failure to notify employees of payslips, or providing payslips that do not comply with regulations;
  No equal pay or gender discrimination for workers performing work of equal value (new rule).

In addition, fines ranging from 5 to 10 million VND will also be applied to violations stipulated in the new regulations, such as:

• No trial application of labor norms is permitted before their official promulgation.
• Failure to notify employees of payslips, or providing payslips that do not comply with regulations;
• No equal pay or gender discrimination for workers performing work of equal value.

3. The fine for businesses that fail to allow female employees a 30-minute break during their menstrual cycle will be increased 20 times.

Clause 2, Article 28 of Decree 12/2022/ND-CP stipulates a fine of VND 10-20 million for employers who commit the following acts: 

"d) Female employees are not allowed a 30-minute break each day during menstruation unless otherwise agreed upon."

This penalty has increased twentyfold compared to before, because according to point b, clause 1, Article 27 of Decree 28/2020, the penalty for this offense was only from 500.000 VND to 1,000,000 VND.

4. Disciplining employees by imposing fines, up to 40 million VND.

Clause 3 of Article 19 of Decree 12/2022 stipulates:

"3. A fine of VND 20.000.000 to VND 40.000.000 shall be imposed on employers for committing any of the following acts:

a) Violating the health, honor, life, reputation, or dignity of employees during labor disciplinary proceedings, but not to the extent of incurring criminal liability;

b) Using fines or salary deductions instead of labor disciplinary measures;

...

Under the old regulations, the fine was only 10-15 million VND.

5. Businesses with 1.000 or more female employees that do not have a breastfeeding room will be heavily fined.

"2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on employers who commit any of the following acts:

...

k) Failing to provide adequate information about the hazardous nature, risks, and requirements of the job to enable workers to make informed choices, and failing to ensure safe and hygienic working conditions for workers as prescribed when employing them in jobs listed as having a negative impact on reproductive and child-rearing functions;

l) Do not install breast milk pumping and storage rooms at workplaces employing 1.000 or more female workers.”

(According to Article 28 of Decree 12)

6. Sexual harassment in the workplace: Fines up to 30 million VND. whereas the old regulations only required disciplinary action in the form stipulated in the labor regulations for this behavior.

Above are some of the new penalties for violations related to labor and social insurance according to Decree 12/2022/ND-CP, effective from January 17, 2022.