During the recruitment, management, and employment processes of businesses, errors can easily occur that, according to the law, are subject to administrative penalties. Being penalized for labor, wage, and social insurance violations not only causes economic losses for businesses but may also indicate that their labor management system is inadequate. This poses a risk of potentially leading to more serious consequences, as errors in labor, wages, and social insurance accumulate over the long term.
This article helps businesses reassess their systems and determine the most appropriate course of action.
Understanding Administrative Violations Related to Labor, Wages, and Social Insurance
1. What are Labor, Wage, and Social Insurance Violations?
This is a wrongful act committed by an organization or individual that violates the regulations of the law on labor management, wages, and social insurance, but it is not a crime and, according to the law, must be subject to administrative penalties.
2. Statute of limitations for administrative penalties related to labor, wages, and social insurance.
The statute of limitations is applied according to the Law on Sanctions for Administrative Violations. The statute of limitations for imposing administrative sanctions is one year, except for cases involving the management of overseas labor, where the statute of limitations is two years.
Labor-related violations for which businesses are subject to administrative penalties.
- Violations related to recruitment and labor management.
- Violation of regulations regarding the conclusion of labor contracts.
- Violation of regulations regarding probationary periods.
- Violation of regulations regarding the implementation of labor contracts.
- Violation of regulations regarding the amendment, supplementation, and termination of labor contracts.
- Violations of regulations regarding training, professional development, and skill enhancement.
- Violation of regulations regarding workplace dialogue.
- Violations of regulations on collective bargaining and collective labor agreements.
- Violations of regulations regarding working hours and rest periods.
- Violation of regulations regarding labor discipline and material liability.
- Violation of regulations concerning female labor
- Violation of regulations concerning child labor.
- Violation of regulations concerning elderly workers.
- Violation of regulations concerning foreigners working in Vietnam.
Actions for which businesses are subject to administrative penalties related to wages.
- Failure to publicly disclose salary scales, wage tables, labor standards, and bonus regulations at the workplace.
- No salary scales, wage tables, or labor standards were established.
- Failure to maintain payroll records and present them upon request by competent authorities.
- Regulations governing wage payments
- Paying workers less than the regional minimum wage.
Actions for which businesses are subject to administrative penalties regarding social insurance.
- Violations of regulations regarding mandatory social insurance and unemployment insurance contributions.
- Violations of regulations regarding the preparation of documents for receiving social insurance and unemployment insurance benefits.
What should businesses pay attention to in order to avoid administrative penalties related to labor, wages, and social insurance?
To comply with regulations and avoid administrative penalties, businesses need to fully implement the following groups of measures:
1. Comply with and properly implement relevant regulations when recruiting employees for the company.
2. Comply with and properly implement regulations on the construction of the wage system, such as: salary scales and wage regulations, when employees receive salaries at the enterprise.
3. Establish a management system and participate in social insurance for your business in accordance with the regulations on mandatory social insurance participation for employees.
To ensure proper implementation, businesses can refer to the following guide on labor management – payroll – social insurance:
Look up all administrative penalties for violations related to Labor - Wages - Social Insurance.
FAQ - Frequently Asked Questions about Penalties for Violations of Labor, Employment, and Social Insurance Regulations in Ho Chi Minh City
Q: If a company pays social insurance contributions at a rate lower than the actual salary stated in the employment contract, as agreed upon with the employee, will it be penalized?
A:
Point b, Clause 4 and Clause 7, Article 38 of Decree 28/2020/ND-CP on administrative penalties in the fields of labor, social insurance, and sending Vietnamese workers abroad under contract stipulates the following regarding violations of regulations on mandatory social insurance and unemployment insurance contributions:
4. A fine of 12% to 15% of the total amount of mandatory social insurance and unemployment insurance contributions due at the time of the administrative violation report, but not exceeding VND 75.000.000, shall be imposed on employers who commit one of the following acts:
b) Paying social insurance and unemployment insurance contributions at levels lower than prescribed, but not constituting evasion of contributions;
7. Remedial measures.
a) Compulsory payment of mandatory social insurance and unemployment insurance contributions due for violations of the regulations specified in Clauses 4, 5, and 6 of this Article;
b) The employer shall be required to pay interest equal to twice the average investment interest rate of the social insurance fund in the immediately preceding year, calculated on the amount and duration of delayed, non-payment, or evasion of contributions; if this is not done, at the request of the competent authority, the bank, other credit institution, or the State Treasury shall be responsible for deducting from the employer's deposit account the unpaid or delayed amount and interest on this amount, calculated at the highest non-term deposit interest rate published by state-owned commercial banks at the time of the penalty, into the social insurance agency's account for violations of the provisions of Clauses 4, 5, and 6 of this Article for 30 days or more.
Therefore, if an employer pays social insurance contributions at an incorrect rate, but this is not considered evasion, they may be subject to administrative penalties according to the regulations mentioned above.