Decree 283, addressing administrative penalties in labor, social insurance, and the dispatch of Vietnamese workers abroad under contract, was recently issued by the Government.

Under the new regulations, employers face fines ranging from 5 to 50 million VND for various offenses, depending on the number of affected employees. These offenses include: late salary payments, failure to pay or underpaying salaries as per contract, and underpaying for overtime, night work, or work stoppages.

This penalty framework also covers employers who interfere with employees' autonomy over their wages or compel them to use their salaries to purchase goods or services from the employer or a designated entity.

Employers who pay below the regional minimum wage will face fines of 20 to 75 million VND, with the amount depending on the number of underpaid individuals. Beyond the fine, employers must also fully compensate employees for the outstanding wages, plus interest on the delayed or underpaid sums.

Currently, the monthly minimum wages are: 5,31 million VND in region I, 4,73 million VND in region II, 4,14 million VND in region III, and 3,7 million VND in region IV. The Ministry of Home Affairs has proposed increasing these rates from 1/1/2027, to 5,7 million VND, 5,08 million VND, 4,45 million VND, and 4,04 million VND respectively.

Additionally, employers face fines of 5 to 10 million VND for failing to establish or publicize salary scales, wage tables, labor norms, and bonus regulations before implementation. The same penalty applies if they create these documents without consulting employee representative organizations at the facility.

These fines also apply to employers who fail to provide proper payroll statements, or engage in unequal pay or gender discrimination for jobs of equal value.

Textile and garment workers starting their shift in TP HCM. Photo: *Nhu Quynh*.

Fines up to 75 Million VND for Excessive Overtime

Current regulations stipulate that employees working under normal conditions should not exceed 8 hours per day or 48 hours per week. For weekly work arrangements, businesses can schedule a maximum of 10 hours per day, provided the 48-hour weekly limit is not exceeded, and employees are informed. The State actively encourages businesses to adopt a 40-hour work week.

Overtime is capped at 40 hours per month and 200 hours per year. However, certain sectors and occupations are permitted up to 300 hours of overtime annually. These include: textiles and garments, footwear, electronics, agricultural and seafood processing, electricity generation and supply, telecommunications, oil refining, and water supply and drainage.

Employers who schedule normal working hours beyond legal limits or demand overtime without employee consent will incur fines of 20 to 25 million VND. Exceptions to the consent rule apply in specific circumstances, such as: national defense and security duties, protecting lives and property, and preventing or mitigating the consequences of natural disasters, epidemics, or other calamities.

Employers who exceed overtime limits or fail to ensure adequate rest periods during working hours or between shifts will face fines ranging from 5 to 75 million VND, depending on the number of affected employees.

Fines of 2 to 5 million VND will be imposed if employers deny employees personal leave or unpaid leave as stipulated by law. This penalty also applies if employers fail to provide written notification to the Department of Home Affairs (at both the location of overtime work and the main headquarters) regarding overtime exceeding 200 to 300 hours annually.

Hong Tan