Companies face fines of up to $2,850 for forcing overtime in Vietnam

The government has recently issued Decree No. 283, which sets out administrative penalties for violations related to labor, social insurance, and the employment of Vietnamese workers overseas under contract.

The decree takes effect on September 10.

Under the new rules, employers that exceed the legal limits on normal working hours or require employees to work overtime without their consent shall be fined VND20-25 million ($760-950).

Companies that organize overtime beyond the statutory limits or fail to provide legally required rest breaks during working hours or between shifts face significantly higher penalties, ranging from VND5 million ($190) to VND75 million $2,850), depending on the number of employees affected.

Employers that violate regulations on weekly days off, annual leave, or public holiday entitlements may be fined VND10-20 million ($380-760).

Meanwhile, fines of VND2-5 million ($76-190) apply to employers that fail to grant employees personal leave or unpaid leave as required by law.

The same penalty also applies to businesses that do not notify the Departments of Home Affairs of provinces or cities in writing when organizing overtime exceeding 200-300 hours per year, as required by regulations.

Legal limits on working hours

Vietnam's Labor Code stipulates that employees working under normal conditions work no more than eight hours per day and 48 hours per week.

For businesses operating under a weekly work schedule, employees may work up to 10 hours per day, provided total weekly working hours do not exceed 48 hours.

Employers must inform workers of such arrangements, while the government continues to encourage companies to adopt a 40-hour workweek.

Overtime is generally capped at 40 hours per month and 200 hours per year.

However, certain industries are permitted to extend overtime to 300 hours annually, including textiles, garments, footwear manufacturing, electronics, agricultural and forestry processing, salt production, seafood processing, electricity generation and supply, telecommunications, oil refining, and water supply and drainage.

Under the Labor Code, employees under the age of 15 may work no more than four hours per day and 20 hours per week, and are prohibited from working overtime or night shifts.

Workers aged 15 to under 18 are limited to eight hours per day and 40 hours per week.

They may perform overtime or night work only in specific occupations and jobs permitted by law.

Intensifying workplace inspections

Nguyen Nhu Long, deputy head of the Bac Ninh Industrial Zones Authority in northern Bac Ninh Province, told Tuoi Tre (Youth) online newspaper that the authority had stepped up efforts to educate businesses and workers on regulations governing working hours, rest periods, and overtime.

The authority and the provincial Department of Home Affairs have also increased inspections of businesses to monitor compliance with labor regulations covering employment, wages, social insurance, occupational safety, and workplace health.

During the first six months of 2026, as many as 23 companies were inspected.

Despite these efforts, violations persist, particularly among labor-intensive manufacturers in sectors such as electronics and garment production.

Some companies continue to schedule excessive overtime during peak production periods, resulting in prolonged working hours for employees.

In other cases, businesses have failed to provide adequate breaks between shifts, weekly rest days, or compensatory leave.

More frequent scheduled and unannounced inspections will be conducted.

The authority also intends to strengthen guidance for employers to ensure workers' right to refuse overtime is respected, overtime wages are paid in full, and compensatory leave is granted where required.