You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

March 27, 2020

Vietnam Strengthens Regulations Protecting Workers

Subscribe to Updates

On March 4, 2020, the Government of Vietnam issued Decree No. 28/2020/ND-CP Providing Regulations on Administrative Penalties in the Areas of Labor, Social Insurance, and Sending Vietnamese Workers Abroad for Working Under Contract (“Decree 28”). Decree 28 contains 57 articles geared toward protecting Vietnamese workers, including outsourced workers.

Decree 28 sets out a number of infractions which employers should be careful to avoid committing and which can result in severe penalties.

Article 4 of Decree 28 also sets out a list of 51 specific penalties that employers may be subject to. Among these, violators may be required to do the following:

  • Return personal papers of employees;
  • Turn over monies received from outsourcing employees;
  • Pay employees their full salaries;
  • Allow employees to return to their previous jobs;
  • Pay employees full severance allowance, job-loss allowance, plus interest on the unpaid amount;
  • Pay employees a sum of money corresponding to their social insurance contribution, health insurance premium, unemployment insurance premium and annual leave allowances.

Decree 28 provides for dozens of actions which could subject an employer to a penalty, including, among others:

  • Conducting outsourcing without a proper license;
  • Keeping/withholding the personal papers of an employee (such as ID card);
  • Acting as an employment agency or making false claims about a job;
  • Failing to announce results of recruitment in a timely manner;
  • Collecting money from applicants illegally;
  • Requiring workers to undergo more than one probation period for one job or undergo probation longer than permitted;
  • Having workers work overtime more than 12 hours in a day during holidays and weekends;
  • Failing to provide training in occupational safety and occupational hygiene for workers;
  • Not allowing female workers with children under 12 months of age to rest 60 minutes a day;
  • Oppressing or retaliating against workers that organize or take part in strikes;
  • Using the license for overseas manpower supply of another enterprise to send Vietnamese workers abroad;
  • Sending workers abroad without registering the manpower supply contract.

Decree No. 28 provides monetary fines that can be applicable to employers in the case of violations. Fines as high as VND 200 million (approximately USD 8,500) for organizational violators (companies) may apply for the most serious violations. In some cases, double fines may apply.

Decree 28 enters into effect on April 15, 2020, and will replace Decree No. 95 of 2013 and Decree No. 88 of 2015 on the same subject. For more details on how this may affect your company, please contact [email protected].

Related Professionals

Practices

Employment

Location

RELATED INSIGHTS​ 

September 30, 2025
Over the past several years, during and after the COVID-19 pandemic, Thai employees and labor unions have faced reductions in benefits and welfare from their employers. Consequently, they have pursued various strategies to enhance their compensation packages. One such approach involves establishing employee committees to negotiate with employers regarding benefits and welfare. Additionally, companies with existing unions typically nominate representatives to serve on these employee committees. Many employers, however, remain unfamiliar with both the committee’s role and the heightened procedural requirements that apply when disciplinary measures are contemplated against committee members. Because any violation of a committee member’s statutory rights can expose the employer—and its directors or authorized representatives—to criminal liability, a clear understanding of the relevant legal framework is essential. The Labor Relations Act B.E. 2518 (LRA) provides the statutory foundation for establishing employee committees. The purpose of the committee is to promote harmonious industrial relations and create a formal channel through which employees and employers can discuss workplace matters on a regular basis. Any workplace that employs at least fifty employees must, upon request by employees or the labor union, facilitate the creation of a committee. Members may be elected directly by employees or, where applicable, appointed by the labor union. Each member serves a three-year term. The LRA prescribes minimum committee sizes based on the employer’s headcount, as shown in the table below. If union members constitute more than 20 percent of the total workforce, the union must appoint at least one more committee member than the number of nonunion members elected by the general workforce. If union membership exceeds 50 percent of the workforce, the union acquires the exclusive right to appoint every committee member. Where multiple unions exist and their combined appointments would exceed the statutory committee size, the employer may lawfully refuse to
Read More
September 25, 2025
Tilleke & Gibbins’ labor and employment team in Hanoi and Ho Chi Minh City has contributed the Vietnam chapter to Labor and Employment Disputes 2026. Drawing on the expertise of three of the firm’s employment specialists, the chapter provides practical guidance for navigating employment disputes in Vietnam and covers: Pre-action considerations: key requirements, third-party funding, contingency fee arrangements Issuing a claim: forum, territorial jurisdiction, standing, commencing claims, fees, service, defendants and legal personality, types of claims, time limits, counterclaims Case management: procedure, rules, amendments to claims, adding parties, consolidating proceedings, class and collective actions, evidence, witnesses, tactical considerations Interim relief: availability, requirements Trial: hearings conduct and time frames, confidentiality and public access, media reporting, elements of successful claims and burden of proof Alternative dispute resolution: available types, requirements and expectations, enforcement Collective employment and labor rights: enforcement and standing Remedies and enforcement: available remedies, assessing compensation, enforcement mechanisms Appeals: procedure, time frames, other means of challenge Updates and trends: recent cases and developments, technology developments, other issues The Vietnam chapter is available for download below. Tilleke & Gibbins also contributed the Cambodia and Thailand chapters to Labor and Employment Disputes 2026. Readers can also gain 30 days of complementary access to the full Labor and Employment Disputes 2026 guide and the rest of Lexology Panoramic’s varied offerings through this link.
Read More
September 25, 2025
In the Thailand contribution to Labor and Employment Disputes 2026, four members of Tilleke & Gibbins’ Bangkok labor and employment team outline key aspects of dispute resolution in Thailand. Their analysis, part of Lexology Panoramic’s comparative guide covering jurisdictions worldwide, addresses the following areas: Pre-action considerations: key requirements, third-party funding, contingency fee arrangements Issuing a claim: forum, territorial jurisdiction, standing, commencing claims, fees, service, defendants and legal personality, types of claims, time limits, counterclaims Case management: procedure, rules, amendments to claims, adding parties, consolidating proceedings, class and collective actions, evidence, witnesses, tactical considerations Interim relief: availability, requirements Trial: hearings conduct and time frames, confidentiality and public access, media reporting, elements of successful claims and burden of proof Alternative dispute resolution: available types, requirements and expectations, enforcement Collective employment and labor rights: enforcement and standing Remedies and enforcement: available remedies, assessing compensation, enforcement mechanisms Appeals: procedure, time frames, other means of challenge Updates and trends: recent cases and developments, technology developments, other issues The complete Thailand chapter can be downloaded below. Tilleke & Gibbins also contributed the Cambodia and Vietnam chapters to Labor and Employment Disputes 2026. Readers can also gain 30 days of complementary access to the full Labor and Employment Disputes 2026 guide and the rest of Lexology Panoramic’s varied offerings through this link.
Read More
September 25, 2025
Four of Tilleke & Gibbins’ labor and employment specialists in Phnom Penh have authored the Cambodia chapter of Labor and Employment Disputes 2026, the latest edition of Lexology Panoramic’s global guide to handling labor and employment disputes. The chapter provides practical insights on a wide range of dispute resolution issues, including: Pre-action considerations: key requirements, third-party funding, contingency fee arrangements Issuing a claim: forum, territorial jurisdiction, standing, commencing claims, fees, service, defendants and legal personality, types of claims, time limits, counterclaims Case management: procedure, rules, amendments to claims, adding parties, consolidating proceedings, class and collective actions, evidence, witnesses, tactical considerations Interim relief: availability, requirements Trial: hearings conduct and time frames, confidentiality and public access, media reporting, elements of successful claims and burden of proof Alternative dispute resolution: available types, requirements and expectations, enforcement Collective employment and labor rights: enforcement and standing Remedies and enforcement: available remedies, assessing compensation, enforcement mechanisms Appeals: procedure, time frames, other means of challenge Updates and trends: recent cases and developments, technology developments, other issues The full Cambodia chapter is available for download below. Tilleke & Gibbins also contributed the Thailand and Vietnam chapters to Labor and Employment Disputes 2026. Readers can also gain 30 days of complementary access to the full Labor and Employment Disputes 2026 guide and the rest of Lexology Panoramic’s varied offerings through this link.
Read More