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Decree 95 stiffens fines for labour rights violations

Update: January, 15/2014 - 08:58

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On 22 August 2013, the Government issued Decree No 95/2013/ND-CP, referred to hereafter as Decree 95, that sets out administrative sanctions for violations relating to labour rights, particularly those related to social insurance and overseas labour contracts.

An important part of Decree 95 is the increase in penalties imposed on unlicensed employment services. A fine of VND45 million to VND60 million (US$2,142-$2,857) will be imposed on firms illegally operating any employment service or those continuing operations after their business license has expired.

Decree 95 also revised penalties for infringements relating to payment of wages. Fines of VND5 million to VND45 million can be imposed on any employer who:

does not pay salary on time; pays less salary than stated in information submitted to competent authorities; pays lower than regulated wages for overtime work or night-shift work; and deducts wages of workers in contravention of existing regulations.

Any employer who pays less than the minimum wages prescribed by the Government will be fined between VND20 million and VND75 million.

Additionally, the operations of such employers can be suspended for one to three months based on the level of violation.

Penalties of VND10 million to VND20 million will be imposed on any employer who requires female workers who are (i) at least 7 months pregnant (6 months if working in remote areas, highlands or border areas) or (ii) have children under 12 months old to work overtime, work night shifts or go on business trips.

Decree 95 also says that administrative penalties will be doubled for violations committed by an organisation rather than an individual.

Penalties for violations related to social insurance:

An administrative penalty of VND500,000 to VND1,000,000 ($238-476) will be imposed on employee who reaches an agreement with the employer on not participating in compulsory social insurance and unemployment insurance schemes.

An administrative fine equal to between 12 per cent and 15 per cent of the total compulsory social insurance and unemployment insurance amount, but not exceeding VND75 million, will be imposed on employers who: do not pay the mandatory social insurance and unemployment insurance premiums on time; do not pay compulsory social insurance and unemployment insurance at stipulated levels; and do not make social insurance and unemployment insurance payments for all employees.

A fine at the rate of between 18 and 20 per cent of the total amount of money payable for compulsory social insurance and unemployment insurance at the time of preparing the minutes of administrative offence, but not exceeding VND75 million, shall be levied on any employer who fails to pay compulsory social insurance or job loss insurance for all employees eligible for both benefits.

Fines for violations related to overseas labour supply contracts:

Administrative fines of VND150 million to VND200 million shall apply for the following acts: sending workers abroad without registration of manpower supply contracts or probation acceptance contracts; or when such contracts have been registered but not yet approved by the competent State body; or when any contractor, tender winner or organisation conducting offshore investments sends Vietnamese workers abroad without reporting to the competent State body or when it reports the sending of workers abroad, but has done so before obtaining approval from competent State body.

In addition, such enterprises, contractors and organisations can be suspended from sending workers overseas for six to 12 months based on the level of violations committed.

Enterprises in the business of sending workers abroad will be fined between VND5,000,000 and VND10,000,000 if: they fail to publicise details of their business license in accordance with regulations; they fail to publicly list their decision to assign the service to a branch and display a copy of the business license at the branch office; appoint someone without a bachelor's degree or higher qualification to a management position; and fail to report changes in executive leadership.

Decree 95, which took effect on 10 October 2013, replaced Decree No. 47/2010/ND-CP, dated 6 May 2010 on penalties for violations of labour regulations, Decree No 86/2010/ND-CP, dated 13 August 2010, on penalties for administrative violations of social insurance regulations and Decree No. 144/2007/ND-CP, dated 10 September 2007, on penalties for administrative violations related to sending workers overseas. — INDOCHINE

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