1. Legal Basis

Understanding these documents is crucial for employers as they define the requirements, procedures, and potential consequences associated with this process.

1. Labor Code 2019:

This is the primary legal document governing labor relations in Vietnam.
Article 118 in this code mandates employers with 10 or more employees to issue and register internal labor regulations.
It also outlines the key content these regulations must contain, ensuring they address crucial aspects of the employer-employee relationship.

2. Decree No. 145/2020/ND-CP:

This decree elaborates on specific articles of the Labor Code, providing further details and clarifications regarding working conditions and labor relations.
While not directly addressing registration procedures, it may offer additional insights into the intended purpose and scope of internal labor regulations.

3. Decree No. 12/2022/ND-CP:

This decree focuses on penalties for administrative violations related to labor regulations.
Specifically, Article 19.2 outlines the fines imposed on employers who fail to register labor regulations when required, highlighting the legal consequences of non-compliance.

4. Circular 10/2020/TT-BLDTBXH:

This circular guides specific articles of the Labor Code concerning employment contracts, collective bargaining, and jobs with specific risks.
While not directly addressing registration, it may offer relevant information regarding labor discipline and material responsibility, which must be included in the regulations of employers with less than 10 employees.

By understanding these legal documents, employers can:

Identify their obligation to register internal labor regulations based on their employee count.
Grasp the key content that these regulations must include, ensuring they comply with legal requirements.
Be aware of potential penalties associated with non-compliance, emphasizing the importance of following proper procedures.

Remember, this information is for general understanding and cannot replace the guidance of a qualified legal professional. Consulting a lawyer can help you interpret these legal documents in the context of your specific business situation and ensure your labor practices adhere to Vietnamese law.

2. Who Needs to Register Labor Regulations?

The article states that the obligation to register labor regulations in Vietnam depends on the number of employees an employer has. Here's a breakdown of the requirements:

1. Employers with at least 10 employees:

Obligation: These employers are legally obligated to issue written internal labor regulations and register them with the relevant government agency.
Reasoning: This requirement ensures that these companies, with a larger workforce, have a well-defined framework governing the working environment, employee rights and responsibilities, and disciplinary procedures. This promotes fair and transparent labor practices and protects both employers and employees.

2. Employers with fewer than 10 employees:

Option: These employers are not required by law to register formal labor regulations.
Alternative: Instead of written regulations, they must include provisions on labor discipline and material responsibility in the individual employment contracts of each employee.
Reasoning: For smaller companies, individual contracts can provide sufficient detail regarding employee expectations and consequences for misconduct or negligence.

Important Points to Remember:

Compliance: Regardless of the size of the company, all employers in Vietnam are still bound by the provisions of the Labor Code 2019 and other relevant laws.
Benefits of Having Regulations: Even though not mandatory, having written internal labor regulations, even for smaller companies, can be beneficial. They can:
- Promote transparency and clarity for employees regarding their rights and responsibilities.
- Establish a clear and consistent framework for managing disciplinary issues and workplace conduct.
- Minimize the risk of disputes by clearly outlining expectations and procedures.

Additional Considerations:

While not required to register, it's recommended for smaller companies to consider developing internal guidelines or policies to address key aspects of the employer-employee relationship.
These guidelines can be less formal than registered regulations but can still provide valuable guidance for both employers and employees.

3. Issuing Labor Regulations

1. Consultation with Employee Representatives (if applicable):

Employers with a representative organization of employees at their workplace are legally required to consult with them before issuing or revising internal labor regulations.
This consultation process aims to ensure transparency, fairness, and employee participation in establishing the rules and guidelines governing the workplace.
The consultation process should follow specific regulations outlined in Circular 10/2020/TT-BLDTBXH. These regulations aim to ensure open communication and exchange of opinions between the employer and employee representatives.

Steps involved in the consultation process:

Sharing the draft regulations: The employer provides the draft labor regulations to the employee representatives for review and feedback.
Collecting and summarizing feedback: Employee representatives gather feedback from the employees they represent and summarize it into a document.
Organizing dialogues and discussions: Both parties engage in open dialogue and discussions to address concerns, seek clarification, and reach a consensus.
Documenting the process: The consultation process, including discussions, decisions, and any disagreements, should be documented and kept on record.
Disseminating the main content: After finalizing the regulations, the employer notifies all employees and posts the key content in prominent locations within the workplace.

2. Content of Internal Labor Regulations:

While specific content may vary, the Labor Code 2019 outlines some key elements that internal labor regulations must address:

Working hours and rest periods: This section defines the standard working hours, overtime procedures, and break times for employees.
Order at the workplace: This section establishes guidelines for maintaining a safe, orderly, and productive work environment.
Occupational safety and health: This section outlines measures and procedures to ensure the safety and well-being of employees in the workplace.
Actions against sexual harassment in the workplace: This section specifies clear policies and procedures to prevent and address any instances of sexual harassment.
Protection of the assets and intellectual property of the employer: This section outlines how employees should handle and protect company property, including technological and business secrets.
Cases in which reassignment of employees is permitted: This section defines the conditions under which the employer can reassign employees to different positions or tasks.
Violations against labor regulations and disciplinary measures: This section outlines specific actions or behaviors considered violations of the regulations and the corresponding disciplinary procedures that can be applied.
Material responsibility: This section defines the employee's responsibility for any damage caused to the company's property or assets due to negligence or misconduct.
The person having the competence to take disciplinary measures: This section clarifies who within the company has the authority to impose disciplinary actions on employees who violate the regulations.

3. Additional Considerations:

While not legally mandated, employers are encouraged to involve employee representatives in the process, even if not formally required. This fosters a more collaborative and inclusive workplace environment.
The internal labor regulations should be written, easily accessible, and translated into the local language if necessary, ensuring all employees understand their rights and responsibilities.
It's crucial to keep the regulations updated to reflect any changes in the law, company policies, or industry standards.

Following these steps and considerations ensures that the process of issuing internal labor regulations in Vietnam is transparent, compliant with legal requirements, and contributes to a positive and productive work environment for both employers and employees.

4. Procedures for Registration

1. Prepare the Application Dossier:

Before applying, employers need to gather the following documents:

A written request for registration of labor regulations: This formal request expresses the employer's intention to register the internal labor regulations.
Copy of the internal labor regulations: A clear and complete copy of the finalized regulations is required.
Written comments from the employee representative organization (if any): If the company has an employee representative organization, their written comments on the regulations must be included.
The employer's documents containing regulations related to labor discipline and material responsibility (if any): These documents may be relevant if the company has established separate policies or procedures for these aspects.

2. Submit the Dossier:

Once the dossier is complete, the employer must submit it to the Department of Labor, Invalids and Social Affairs (DOLISA) where the business is registered. This department is responsible for reviewing and processing the application.

3. Receive Confirmation:

Upon receiving the application, DOLISA will issue a certificate of receipt to the employer, acknowledging that the dossier has been received.

4. Review and Potential Revisions:

DOLISA will review the submitted documents to ensure they comply with legal requirements. If any inconsistencies or issues are found, the employer will be notified within 7 days and instructed to make the necessary revisions or amendments.

5. Registration Completion:

If the application is complete and compliant, and no revisions are required, the application will be considered valid by default after 15 days from the date DOLISA received the dossier (or the revised dossier, if applicable). This signifies the successful registration of the internal labor regulations.

Additional Considerations:

Employers with branches in different provinces: These companies need to send registered copies of the labor regulations to the DOLISA office in each province where a branch operates.
Delegation of Authority: In specific cases, DOLISA at the provincial level may authorize the district-level labor authority to handle the registration process. This decision is based on specific circumstances and at the discretion of the provincial authorities.

Important Reminders:

Timeline adherence: Employers should ensure they apply for registration within 10 days before the internal labor regulations are issued. This ensures timely processing and avoids potential delays.
Seeking professional guidance: While the article provides a general overview, consulting with a qualified lawyer familiar with Vietnamese labor law is highly recommended. They can offer specific advice and ensure your company adheres to all legal requirements throughout the process.

5. Penalties for Non-Compliance

Applicable Regulation:

Decree No. 12/2022/ND-CP on penalties for administrative violations against regulations on labor, social insurance, and Vietnamese guest workers outlines the specific penalties for non-compliance with labor regulation registration.

Who is Subject to Penalties?

Employers with at least 10 employees who fail to register their internal labor regulations face potential fines.

Nature of the Penalty:

A fine of 5,000,000 VND to 10,000,000 VND (approximately $215 to USD 430) will be imposed on the employer for non-compliance.

Additional Points to Consider:

These penalties highlight the importance of complying with the legal obligation to register internal labor regulations.
Failing to do so can result in financial consequences for the employer.
Beyond the financial penalty, non-compliance can also have** negative impacts** on the employer's reputation and potentially lead to challenges in resolving employee disputes.

Beyond Penalties:

While the article focuses on the legal penalties, it's important to understand the broader consequences of non-compliance:

Employee rights: Unregistered regulations can leave employees unaware of their rights and responsibilities, potentially leading to disputes and dissatisfaction.
Workplace fairness: Lack of clear and registered regulations can create an environment of uncertainty and inconsistency in the application of disciplinary measures.
Legal disputes: Unregistered regulations may not be enforceable in legal disputes, putting the employer at a disadvantage.

6. Conclusion

Understanding the requirements and procedures for registering internal labor regulations in Vietnam is crucial for employers with 10 or more employees. Following these guidelines ensures compliance with the law, protects employee rights, and avoids potential penalties. This article provides a general overview and is not a substitute for professional legal advice. Always consult with a qualified lawyer for specific guidance on your situation. By seeking professional advice and adhering to legal requirements, employers can foster a transparent, fair, and legally sound work environment for their employees in Vietnam.

If you need further explanation on this subject, please don't hesitate to contact us through email at lienhe@luatminhkhue.vn or phone at: +84986 386 648. Lawyer To Thi Phuong Dzung