Foreign workers in Vietnam: What to know as new penalty rules take effect September 10

Vietnam’s government issued the decree on July 15 to regulate administrative penalties in labor, social insurance and overseas employment.

For foreign workers in Vietnam, the new decree does not create an entirely new system of work-permit requirements. Instead, it sets out the penalties that will apply from September 10 and reinforces responsibilities for both workers and their employers.

Foreign workers without valid authorization face fines

Foreign workers who work in Vietnam without a work permit or a certificate confirming that they are exempt from the work-permit requirement can be fined VND15 million (US$573) to VND25 million ($955).

The same penalty applies to those who use a work permit or exemption certificate after it has expired.

Foreign workers should also be aware that a fine is not necessarily the only consequence of a violation.

Additional sanctions may include deportation and the confiscation of altered, falsified or forged papers and documents, depending on the violation.

Employers also face penalties

The decree places substantial responsibility on employers that hire foreign workers.

An employer using foreign workers without a valid work permit or exemption certificate, or using workers whose documents have expired, can be fined according to the number of workers involved.

The fine ranges from VND30 million ($1,146) to VND45 million ($1,720) for violations involving one to 10 workers, VND45 million ($1,720) to VND60 million ($2,292) for 11 to 20 workers, and VND60 ($2,292) million to VND75 million ($2,868) for 21 or more workers.

Employers can also face a fine of VND5 million ($191) to VND10 million ($382) for each foreign worker, capped at VND75 million ($2,868), for using a foreign worker in a job that does not match the contents of the work permit or exemption certificate.

The same penalty applies when employers fail to recover or return work permits or exemption certificates as required.

One area worth particular attention is the notification requirement for employers.

Employers can be fined VND1 million ($38.2) to VND3 million ($114) for failing to make required notifications, making them late or providing incomplete information when foreign workers are exempt from work permits or when foreign workers with a work permit or exemption certificate work for the same employer in multiple centrally governed cities or provinces.

Employers that alter or falsify documents in applications for the issuance, reissuance or extension of work permits or exemption certificates of foreign workers can be fined VND40 million ($1,530) to VND60 million ($2,292).

Employers may also be required to make overdue notifications or return work permits and exemption certificates to the competent authorities in certain cases.

The same fine applies to employers that use forged documents in such applications, provided the violation does not rise to the level of criminal prosecution. Authorities may also confiscate the altered or forged documents.

The fines above apply to individuals. Organizations are subject to fines twice the applicable individual amounts.

What foreign workers should check

Foreign workers should make sure their work authorization is valid and that their actual job and workplace comply with the information stated in that authorization.

Workers should also understand whether they are required to hold a work permit or qualify for an exemption.

Employers, meanwhile, are responsible for completing the required notifications and handling work permits and exemption certificates in accordance with the rules.