MANY VIOLATIONS OF CONTRACTS FROM 4/15/2020 HAVE BEEN INCREASED

MANY VIOLATIONS OF CONTRACTS FROM 4/15/2020 HAVE BEEN INCREASED | Business Law

Recently, the Government issued Decree 28/2020 / ND-CP (effective April 15, 2020) replacing Decree 95/2013 / ND-CP and Decree 88/2015 / ND- The CP stipulates sanctions against administrative violations in the field of Labor, Social Insurance, sending Vietnamese workers to work abroad under contracts. Accordingly, many contract violations are subject to an increase in the fine level, specifically as follows:
Firstly, violations of contracting:
– A fine of from 2,000,000 VND to 25,000,000 VND for the following violations:
+ Do not enter into a labor contract in writing for jobs with a term of full 3 months or more;
+ Failure to enter into the right type of labor contract with the employee;
+ Signing a labor contract without fully covering the main contents of the labor contract;
+ Entering into a labor contract in case of hiring the employee to work as a director in an enterprise with State capital not in accordance with the provisions of law at one of the following levels.
– The fines for the above violations are specified as follows:
+ From VND 2,000,000 to VND 5,000,000 for violations of 01 to 10 workers;
+ From VND 5,000,000 to VND 10,000,000 for violations of 11 to 50 workers;
+ Between VND 10,000,000 and VND 15,000,000 for violations of between 51 and 100 workers;
+ From VND 15,000,000 to VND 20,000,000 if the violation involves 101 – 300 workers;
+ From VND 20,000,000 to VND 25,000,000 with 301 workers or more violations
– A fine of from VND 20,000,000 to VND 25,000,000 shall be imposed for the following violations:
+ Keeping originals of personal papers, diplomas and certificates of employees when concluding or performing labor contracts;
+ Forcing workers to apply security with money or other property for the performance of labor contracts;
+ Entering into a labor contract with an employee from full 15 years to under 18 years without the written consent of the legal representative of the employee.

Secondly, violations of contract performance:

– Cash fine of from VND 1,000,000 to VND 3,000,000 for an act of temporarily transferring a worker to another job than the labor contract but failing to notify the employee 3 working days in advance or without notice clarifying the time limit for temporary work or job placement not suitable to the health and gender of the employee.
– A fine of between VND 3,000,000 and 7,000,000 for the following acts:
+ Arranging employees to work at places other than the places agreed in the labor contracts, except for the case specified in Article 31 of the Labor Code 2012;
+ Do not return the employee back to work after the expiry of the period of temporary suspension of labor contract performance, unless otherwise agreed upon by the employer and the employee;
+ Transferring employees to do other jobs in comparison with the labor contracts for improper reasons, terms or without written consent of laborers according to the provisions of law.
– A fine of between VND 50,000,000 and VND 75,000,000 shall be imposed for acts of forced labor or mistreating laborers but not seriously enough to be examined for penal liability.

Thirdly, violating regulations on amendment, supplementation and termination of labor contracts
– A fine of from 1,000,000 to 20,000,000 for the following acts:
+ Amending the labor contract term more than once using the appendix of the labor contract or when amending the labor contract term with the labor contract annex, changing the type of labor contract signed except for cases where extend the term of the labor contract with the elderly and part-time union officials prescribed in Clause 6, Article 192 of the 2012 Labor Code;
+ Failure to comply with the provisions on the time limit for payment of employees’ benefits when terminating the labor contract;
+ Failing to pay or insufficiently paying severance pay or job severance allowances to laborers in accordance with law;
+ Failure to pay or insufficiently compensating workers’ compensation money when unilaterally terminating labor contracts illegally;
+ Failure to complete the procedures for certification and return of other kept papers of employees after termination of labor contracts in accordance with law.
– Specifically, the sanction levels for the above acts are as follows:
+ From VND 1,000,000 to VND 2,000,000 with a violation of 01 to 10 workers;
+ From VND 2,000,000 to VND 5,000,000 for violations of 11 to 50 workers;
+ From VND 5,000,000 to VND 10,000,000 for violations of 51 to 100 workers;
+ Between VND 10,000,000 and VND 15,000,000 for violations of 101 to 300 employees;
+ From VND 15,000,000 to VND 20,000,000 with 301 workers or more violations
– A fine of between VND 5,000,000 and VND 10,000,000 for the following acts:
+ Resigning 02 or more employees without giving to the representative organization of the labor collective at the grassroots level or failing to notify in writing 30 days in advance to the provincial labor management authority in case of changes in structure, technology or for economic reasons;
+ No Employing employees in accordance with the law.

The above sanctioning levels apply to individual violations. For organizations, the sanction level increases.

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