NOT PAYING EMPLOYEES DURING THE PROBATION PERIOD OR AFTER 2 MONTHS OF PROBATION
During the probation period, the employee’s salary is agreed by both parties but must be at least 85% of the official salary. For each job, an employee only undergoes probation period once. Probation duration:
- Within 60 days for jobs that demand college education or further.
- Within 30 days for jobs that demand vocational intermediate education, technical workers, professional workers.
- Within 06 working days for other jobs.
Penalties: A fine from VND 2-5 million; and the enterprise that violates the law must pay full salary to the employees.
KEEPING THE ORIGINAL IDENTIFICATION PAPERS, CERTIFICATES AND QUALIFICATIONS OF EMPLOYEES
Enterprises are not allowed to keep original identification papers, certificates, and qualifications of employees even if these documents arise during work or when employees are sent for training. In addition, the act of requesting employees to mortgage cash or property for the labor contract performance is prohibited as stipulated by the Labor Code.
Penalties: A fine from VND 20-25 million; and the enterprise that violates the law must return the above-mentioned documents, mortgage cash or property to the employees.
PAYING SALARIES LOWER THAN THE LOCAL MINIMUM SALARIES
The local minimum salaries in 2016 stipulated in Decree 122/2015/ND-CP are as follows:
- Region 1: VND 3,500,000
- Region 2: VND 3,100,000
- Region 3: VND 2,700,000
- Region 4: VND 2,400,000
Therefore, if an enterprise pays salaries to employees lower than the local minimum salaries, it will be fined.
Penalties: Depending on the number of employees, the enterprise that violates the law will be fined from VND 20-75 million; and it must pay the employees an additional amount at least equal to the deposit interest rates by the State Bank of Vietnam announced at the time of payment.
MAKING INADEQUATE OR LATE PAYMENTS
As stipulated by law, monthly paid employees are paid once a month or twice a month and they must be paid directly, fully and in a timely manner. In case enterprises are not able to pay salaries and wages in a timely manner, they must not delay more than one month. In addition, employees can unilaterally terminate the labor contract and in this case, employees only need to inform the enterprise at least 3 days in advance.
Penalties: Depending on the number of employees, the enterprise that violates the law will be fined from VND 5-50 million; and it must pay the employees an additional amount at least equal to the deposit interest rates by the State Bank of Vietnam announced at the time of payment.
WORKING OVERTIME
Enterprises must ensure that the overtime hours of the employee shall not exceed 50% of the normal working hours in 01 days. In case of application of working regulation on weekly basis, the total normal working hours and the overtime hours shall not exceed 12 hours in a day, and less than 30 hours in 01 months and the total of not more than 200 hours in 1 year.
Penalties: A fine from VND 25-50 million and the enterprise that violates the law will be suspended from operation for 1-3 months.
NOT PAYING COMPULSORY SOCIAL INSURANCE
Compulsory social insurance is organized by the State and obliges enterprises and employees to participate to secure, replace or compensate part of their income it is reduced or cut because of different causes.
Penalties:
- A fine of between 12% and 15%, and a maximum of VND 75 million if an enterprise does not buy insurance for all employees who are entitled to compulsory social insurance.
- A fine of between 18% and 20% and a maximum of VND 75 million if an enterprise does not buy social insurance for all employees.
- At the same time, the enterprise is forced to pay unpaid insurance premiums and the amount at least equal to the deposit interest rates of that amount of money.
VIOLATION OF DAYS OFF FULLY PAID
At present, an employee shall be entitled to have days off fully paid on the following public holidays: Calendar New Year Holiday, Lunar New Year Holidays, Victory Day, International Labor Day, National Day, Hung Kings Commemoration Day. When the public holidays mentioned above coincide with weekly days-off, the employee shall be entitled to take the succeeding compensatory days-off instead. The employees who are foreign citizens working in Vietnam, besides the public holidays mentioned above, they also take an additional day of traditional Tet and 01 day of their country’s National Day.
Penalties: A fine from VND 500,000 – VND 15 million depending on the number of employees.
PHAN LAW VIETNAM
Hotline: 1900.599.995 – 0794.80.88888
Email: info@phan.vn
