On 27 November 2015, the National Assembly adopted a new Criminal Code No. 100/2015/QH13, which takes effective from 01 July 2016. This new Criminal Code will replace the old Criminal Code in 1999 and its amending / guiding documents.

Notably, the new Criminal Code provides new sanctions for violations in employment sector. Details of these sanctions are set out below:

Illegal dismissal of employees

In particular, if a person for his/ her own sake conducts one of the following behaviours that make dismissed employees or their families fall into difficult situations or go on strike, he/ she will be subject to monetary fine of VND10 million – VND100 million, non-custodial reform of up to 1 year or IMPRISONMENT/JAIL of 3 months to 1 year:

  • Illegal dismissal of employees;
  • Illegal issuance of decision on dismissing public servants; or
  • Forcing, threatening the employees or public servants to quit their jobs.

The violating person will be subject to VND100 million – VND 200 million monetary fine or 1-3 year IMPRISONMENT/JAIL if he / she commits the crimes in either of the following situations:

  • Dismissing 2 employees and more;
  • Dismissing pregnant employees;
  • Dismissing mothers of less than 12-month old baby; or
  • Causing the dismissed employees commit suicide.

At the same time, the violating person may also be prohibited from holding certain professional positions within 1- 5 years.

Employment of employees under 16

Anyone who employs a person under 16 to do hard or dangerous work or work that involves contact with harmful substances in any of the following cases will be subject to a fine of VND 30 million – VND 200 million or up to 03-year non-custodial reform or 06 – 36 month imprisonment:

  • The offender previously incurred a civil penalty or has a previous conviction for the same offence which has not been expunged;
  • The offence results in bodily harm to 01 people who suffers from 31% – 60% physical disability;
  • The offence results in bodily harm to 02 people or more who suffer from a total physical disability of 31% – 60%.

A sanction of 03 – 07 year imprisonment applies in the following cases:

  • The offence has been committed more than once;
  • The offence involves 02 workers or more under 16;
  • The offence results in the death of 01 person or bodily harm to 01 person who suffers from over 61% physical disability;
  • The offence results in bodily harm to 02 people, each of whom suffers from 31% – 60% physical disability;
  • The offence results in bodily harm to 03 people or more who suffer from a total physical disability of over 61%.

A sanction of 05 – 10 year imprisonment applies in the following cases:

  1. The offence results in the death of 02 people or more;
  2. The offence results in bodily harm to 02 people or more, each of whom suffers from over 61% physical disability;
  3. The offence results in bodily harm to 03 people or more who suffer from a total physical disability of over 122%.

The offender might also be subject to a monetary fine of VND 10 million to VND 50 million. Evading payment of social insurance, health insurance, unemployment insurance for employees

A corporate legal entity who commits the following crimes is subject to monetary fine of VND 200 million to VND 500 million:

  • The amount of insurance contribution evaded is VND 50 million to under VND 300 million;
  • The offender fails to pay insurance for 10 – 49 employees.

A corporate legal entity who commits the following crimes is subject to monetary fine of VND 500 million to VND 1 billion:

  • The offence has been committed more than once;
  • The amount of insurance contribution evaded is VND 300 million to under VND 1 billion;
  • The offender fails to pay insurance for 50 – 199 employees;
  • The offender collects or deducts insurance contribution from the employees at the amount of VND 50 million to under VND 300 million or from 10 -49 employees but fails to pay insurance [to the authority].

A corporate legal entity who commits the following crimes is subject to monetary fine of VND 1 billion to VND 3 billion:

  • The amount of insurance contribution evaded is VND 1 billion or more;
  • The offender fails to pay insurance for 200 employees or more;
  • The offender collects or deducts insurance contribution from the employees at the amount of VND 300 million to under VND 1 billion or from 50 – 199 employees but fails to pay insurance [to the authority]

Coercive labour

Any person that uses violence or threat of violence or other methods to force a person to work against his/her will, depending on each case, be subject to monetary fine of VND30 million – VND200 million, 06-month to 12-year imprisonment, or prohibited from holding certain positions or doing certain jobs within 01 – 05 years.

Action plan

What we recommend to you now:

  • You should update your Internal Labour Rules
  • You should inform your managing team about these new rules !

We are fully qualified to assist you with this work. Kindly let us know if you require our assistance.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.