Office workers (Photo: Freepik).
Vietnamese employers could face fines of up to VND 50 million (about USD 1,920) for relying on verbal employment agreements with workers hired for one month or longer under a new government decree.
The government recently issued Decree No. 283, which sets out administrative penalties for violations of labour, social insurance and overseas employment regulations.
Article 15 of the decree specifies penalties for breaches of rules governing employment contracts.
Employers may be fined for failing to sign written contracts with employees hired for jobs lasting one month or longer, failing to conclude written contracts with authorised representatives acting on behalf of groups of workers aged 18 or above employed for seasonal work or fixed-term jobs of less than 12 months, using the wrong type of employment contract, or omitting mandatory contractual terms required by law.
For individual employers, fines range from VND 2 million (about USD 77) to VND 25 million (about USD 960), depending on the number of affected workers.
Under Article 7 of the decree, fines imposed on organisations are double those applied to individuals. As a result, companies may face penalties of up to VND 50 million (about USD 1,920) for the same violations.
Employers found in breach of the regulations may also be required to take corrective measures in addition to paying fines.
The decree also imposes penalties for other labour law violations.
Employers may be fined VND 20-25 million (about USD 770-960) for retaining workers' original identity documents, diplomas or professional certificates during the signing or performance of an employment contract, or for requiring employees to provide cash or other assets as security for fulfilling contractual obligations.
The same penalty applies to employers who enter into employment contracts with workers aged 15 to under 18 without obtaining the written consent of their legal representative.
