Tax alert – January 27, 2022

DECREE 12/2022/ND-CP STIPULATES ON PENALTIES FOR ADMINISTRATIVE VIOLATIONS ON LABOR, SOCIAL INSURANCE AND VIETNAMESE EMPLOYEES WORKING ABROAD UNDER CONTRACT

Aiming to reduce administrative violations in terms of labor, on January 17, 2022, the Government issued Decree 12/2022/ND-CP amending the Decree 28/2020/ND-CP on the application of 20 new penalty levels.

Accordingly, the administrative fine levels are specified as follow:

Violation	Penalty level	Penalty level
	Decree 12/2022/ND-CP	Decree 28/2020/ND-CP
Implement acts of sexual harassment in the workplace but not be held criminally liable	VND 15 - 30 million	Not regulated
Force employees to perform labor contracts to pay debts to employers	VND 50 - 75 million	Not regulated
Announce in written form to employees about the termination of the labor contract when the labor contract is terminated in accordance with the provisions of the Labor Code, except for the case specified in Clauses 4, 5, 6, 7 and 8 Article 34 of the Labor Code	VND 01 - 03 million	Not regulated
Do not publicly announce at the workplace before implementation: salary scale, payroll; labor level; bonus policies	VND 05 - 10 million	VND 02 - 05 million
Do not announce the salary statement or announce the salary statement but not in accordance with regulations	VND 05 - 10 million	Not regulated
Do not carry out procedures for confirmation of unemployment insurance contribution for employees so that employees can complete their application for unemployment insurance benefits as prescribed	VND 01 - 03 million/an employee is violated with the maximum of VND 75 million	VND 0.5 - 01 million
Falsify or make wrong contents of dossiers for social insurance and unemployment insurance benefits to profit from social insurance and unemployment insurance benefits but not be held criminally liable for each fake, wrong file of social insurance, unemployment insurance which is claimed	VND 10 - 20 million/a violation file with the maximum of VND 75 million	VND 05 - 10 million

In addition, the Decree also stipulates specific fines for violations of employment services, trade union as well as other violations related to labor.

The statute of limitations for sanctioning is 1 year, except for the cases specified in Clause 1, Article 6 of the Law on Handling of Administrative Violations.

The Decree 12/2022/ND-CP takes effect from January 17, 2022.

Should you have any concerns during the process of implementing the regulations, please contact us.

Tax alert - January 2022.pdf

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