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​ 

May 28, 2025
Tilleke & Gibbins attorneys in Vietnam have contributed the 2025 edition of Doing Business in Vietnam, a comprehensive Q&A-style resource from Thomson Reuters Practical Law that provides essential insights for companies navigating business operations in Vietnam. The guide presents a detailed overview of the country’s legal framework and regulatory environment, reflecting recent updates in Vietnamese legislation and practice. This annually updated guide offers key information on the following areas: Legal system: Structure of the Vietnamese judiciary and the role of codified law. Foreign investment: Conditions for market access, licensing requirements, foreign ownership restrictions, and investment incentives. Business vehicles: Formation and operation of legal entities, including limited liability companies, joint-stock companies, and representative offices. Employment: Employment contracts, social insurance, labor rights, and procedures for hiring foreign nationals. Tax: Overview of corporate income tax, personal income tax, value-added tax, and other tax obligations. Intellectual property: Procedures for protecting and enforcing patents, trademarks, copyrights, and other IP rights. Data protection: Compliance requirements under Vietnam’s data privacy laws, including the Personal Data Protection Decree. Competition law: Antitrust rules and regulatory oversight under the Law on Competition. Anti-bribery and corruption: Legal framework and enforcement practices aimed at curbing corrupt activities. E-commerce and digital business: Regulations governing online platforms, digital content, and cross-border services. Marketing and advertising: Laws and guidelines on advertising standards and consumer protection. Product regulation and liability: Safety requirements, product liability issues, and roles of relevant authorities. Doing Business in Vietnam is part of Practical Law’s global series of legal guides designed to support international practitioners and businesses. To access the most recent edition of the Vietnam guide, visit the Practical Law website and sign up for a free trial.
Read More
May 28, 2025
On May 6, 2025, Cambodia’s Ministry of Labor and Vocational Training (MLVT) issued Prakas No. 112/25 on Overtime Work, Work on Paid Holidays, and Suspension of Weekly Days Off, which outlines specific conditions, formalities, and procedures in relation to working overtime, work on paid holidays, and suspension of weekly days off. Overtime Work Employees may be requested to perform overtime work based on the operational needs of the employer, particularly in the following circumstances: When undertaking special assignments related to inventory and balance sheets, liquidation deadlines, and closing of accounting books. In cases of excessive workload arising from exceptional circumstances where alternative measures are not feasible for the employer. However, the overtime work must be conducted voluntarily and must not be enforced through coercion or disciplinary action. Although this new prakas on overtime work does not specify the maximum allowable hours of overtime work, the Labor Law states that overtime must not cause total working hours to exceed 10 hours per day, except in cases of disaster prevention or rectification. Work on Paid Public Holidays Employees are entitled to paid public holidays announced annually by the MLVT. However, when work cannot be suspended, employees may be requested to perform work on paid public holidays on a voluntary basis. Suspension of Weekly Days Off When urgent work is required to prevent imminent accidents or to repair damage to materials, facilities, or buildings, weekly days off may be suspended for up to two nonconsecutive days per month. This applies to both employees of the affected enterprise and those of external entities engaged in the repairs of the affected enterprise. Reduction of Weekly Days Off Due to Weather Certain categories of enterprises are permitted to reduce employees’ weekly days off by up to two nonconsecutive days per month as compensation for working
Read More
May 9, 2025
On May 6, 2025, Cambodia’s Ministry of Labour and Vocational Training (MLVT) issued Prakas No. 113/25, introducing new obligations for enterprise owners and directors regarding the use and maintenance of enterprise payroll books. Under this prakas, enterprise owners or directors are required to: Utilize and maintain the enterprise payroll book in accordance with the official template provided by the MLVT. Make the enterprise payroll book available to labor inspectors for annotations related to compliance with labor laws and regulations. Review and adjust (if necessary) internal practices based on any findings, recommendations, and restrictions issued by labor inspectors during inspections. The official enterprise payroll book template can be downloaded via the ministry’s Labor Automated Central Management System (LACMS). Additional requirements include: Retention of supporting documents related to the payroll book at the enterprise’s head office to facilitate inspections. Preservation of completed payroll books for a minimum of three years after their closure. Downloading a new payroll book from the LACMS once the current one is fully used. Labor inspectors are authorized to conduct inspections of the payroll book and related documentation at any time. Noncompliance with the provisions of Prakas No. 113/25 may result in significant monetary penalties, as stipulated in Cambodia’s Labour Law. This prakas also repeals Prakas No. 268, dated October 11, 2001, and any provisions in related regulations that conflict with Prakas No. 113/25. All enterprises are strongly advised to comply with the new requirements and begin using the updated enterprise payroll book template from the LACMS to avoid potential penalties.
Read More
May 2, 2025
Attorneys from Tilleke & Gibbins have updated the latest edition of Doing Business in Thailand, a Q&A-style guide from Thomson Reuters Practical Law that offers an overview of key legal considerations for companies operating in jurisdictions worldwide. The contribution outlines the country’s legal and regulatory framework for foreign investment and business operations and reflects the latest legislative developments. The chapter addresses the following core topics: Legal system: Structure of the courts and the codified nature of Thai law. Foreign investment: Business restrictions under the Foreign Business Act, sector-specific regulations, exchange control rules, and investment incentives. Business vehicles: Overview of partnerships, private and public limited companies, and other legal entities. Employment: Labor protections, employment contracts, foreign worker requirements, and termination procedures. Tax: Corporate and personal income tax, indirect taxes, and tax obligations for residents and non-residents. Intellectual property: Registration and enforcement of patents, trademarks, designs, and copyrights. Data protection: Key provisions of the Personal Data Protection Act and related compliance obligations. Competition law: Regulatory framework under the Trade Competition Act. Anti-bribery and corruption: Relevant legislation and enforcement mechanisms. E-commerce and digital business: Legal regime for online transactions and digital platforms. Marketing and advertising: Consumer protection laws and regulations affecting advertising and marketing practices. Product regulation and liability: Safety standards, liability regimes, and roles of enforcement authorities. Practical Law, a legal reference resource from Thomson Reuters, publishes a range of guides for hundreds of jurisdictions and practice areas. The insurance and reinsurance guide is a valuable resource for legal practitioners, covering numerous jurisdictions worldwide. To view the latest version of the guide, please visit the Practical Law website and enroll in the free Practical Law trial to gain full access.
Read More