Decree No. 283/2026/ND-CP: Key changes businesses should note regarding administrative penalties in the fields of labor and social insurance

by KMC Consulting Company Limited

On 15 July 2026, the Vietnamese Government issued Decree No. 283/2026/ND-CP on administrative penalties for violations in the fields of labor, social insurance, and Vietnamese employees working overseas under employment contracts. The Decree will take effect on 10 September 2026 and was issued to align with the new provisions of the 2024 Law on Social Insurance, the 2025 Law on Employment, the 2024 Law on Trade Unions, and other relevant legislation.

Compared with the previous Decree No. 12/2022/ND-CP, Decree No. 283/2026/ND-CP introduces a number of new provisions, expands the scope of administrative sanctions, and strengthens regulatory oversight of enterprises in relation to labor and social insurance compliance.

1. New administrative penalties for violations related to labor registration (Article 12)

Decree No. 283/2026/ND-CP introduces administrative penalties for employers that fail to register employees or fail to update labor registration information as required when enrolling employees in the social insurance system.

The applicable fines are determined based on the number of affected employees, as follows:

  • VND 10 million to VND 20 million for violations involving 1 to 50 employees;
  • VND 20 million to VND 30 million for violations involving 51 to 100 employees;
  • VND 30 million to VND 40 million for violations involving more than 100 employees.

In addition to monetary penalties, employers are also required to complete the labor registration or update the registration information in accordance with the applicable regulations.

2. Strengthened management of labor data and labor market information

To support the digital transformation of labor administration, the Decree introduces administrative penalties for the unlawful collection, use, or provision of labor data.

Violations related to the management, sharing, or use of labor information that do not comply with applicable regulations may be subject to administrative sanctions. In cases involving serious violations or repeated offenses, the case may be referred to the competent authorities for further legal action in accordance with applicable laws.

3. Continued strict enforcement against violations of labor contract regulations (Article 15)

The Decree continues to impose administrative penalties for common violations in the execution of labor contracts, including:

  • Failing to enter into a written labor contract where required by law;
  • Entering into an incorrect type of labor contract;
  • Executing a labor contract that does not contain the mandatory contents prescribed by law.

Administrative penalties

Depending on the number of affected employees, fines range from VND 2 million to VND 50 million, specifically:

  • VND 4 million to VND 10 million for violations involving 1–10 employees;
  • VND 10 million to VND 20 million for violations involving 11–50 employees;
  • VND 20 million to VND 30 million for violations involving 51–100 employees;
  • VND 30 million to VND 40 million for violations involving 101–300 employees;
  • VND 40 million to VND 50 million for violations involving 301 or more employees.

In addition, employers may be fined VND 40 million to VND 50 million for the following violations:

  • Retaining the original identification documents, diplomas, certificates, or other qualifications of employees;
  • Requiring employees to pay a deposit or provide security as a condition for entering into or performing a labor contract;
  • Entering into a labor contract with an employee aged 15 to under 18 years old without the written consent of the employee's legal representative.

In addition to monetary penalties, employers are required to return any retained documents, refund any money or property collected from employees, and pay any applicable interest in accordance with legal regulations.

4. Additional provisions on labor discipline and material liability (Article 25)

Decree No. 283/2026/ND-CP continues to impose administrative penalties for violations relating to internal labor regulations and disciplinary measures in the workplace.

Administrative penalties:

  • VND 2 million to VND 6 million for failing to notify employees of the internal labor regulations or failing to publicly post such regulations as required by law.
  • VND 10 million to VND 20 million for violations including:
  • Failing to issue or register internal labor regulations;
  • Failing to consult the employees' representative organization before issuing internal labor regulations;
  • Applying internal labor regulations that have not yet taken effect or have expired;
  • Imposing disciplinary measures or suspending employees from work without complying with the prescribed procedures and legal requirements.
  • VND 40 million to VND 80 million for serious violations, including:
  • Infringing upon the health, honor, or dignity of employees;
  • Imposing monetary fines or salary deductions as a substitute for disciplinary measures;

Applying disciplinary actions in violation of applicable labor laws.

5. Stricter regulations on probationary employment (Article 16)

The Decree continues to impose administrative penalties for violations relating to probationary employment, including:

  • Requiring probation for labor contracts with a term of less than one month;
  • Requiring an employee to undergo probation more than once for the same position;
  • Imposing a probationary period exceeding the statutory limit;
  • Paying probationary wages at less than 85% of the salary for the corresponding position;
  • Failing to notify employees of the probation results or failing to enter into a labor contract after the employee successfully completes the probationary period.

Administrative penalties:

  • VND 1 million to VND 2 million for requiring probation for labor contracts of less than one month or failing to notify employees of the probation results.
  • VND 4 million to VND 10 million for:
  • Requiring probation more than once for the same position;
  • Imposing a probationary period exceeding the statutory limit;
  • Paying probationary wages below the legally required level;
  • Failing to sign a labor contract after the employee has successfully completed the probationary period.

In addition to monetary penalties, employers are required to pay employees any outstanding wages owed in accordance with the law and, where applicable, enter into a labor contract as required by law.

6. Enhanced oversight of labor contract implementation (Article 17)

The Decree continues to impose administrative penalties for violations arising during the implementation of labor contracts, including:

  • Reassigning an employee to a different job without providing the required notice or without complying with statutory notification requirements;
  • Assigning an employee to work at a location other than the one agreed upon in the labor contract;
  • Failing to reinstate an employee after the suspension of the labor contract has ended;
  • Reassigning an employee to another position without a lawful basis.

Notably, workplace sexual harassment (where the conduct does not constitute a criminal offense) is subject to administrative fines ranging from VND 30 million to VND 60 million.

For violations involving forced labor or compelling employees to work to repay debts, the applicable fines range from VND 100 million to VND 150 million. Employers are also required to implement remedial measures in accordance with the applicable legal provisions.

7. Continued strict enforcement of wage-related violations (Article 23)

Wage compliance remains one of the key areas regularly inspected by labor authorities. Decree No. 283/2026/ND-CP continues to maintain and strengthen administrative sanctions for violations relating to wage regulations.

Employers may be subject to administrative penalties if they:

  • Fail to establish or publicly disclose salary scales, salary tables, labor norms, or bonus policies;
  • Fail to consult the employees' representative organization when developing salary scales, salary tables, or bonus policies;
  • Fail to provide payroll statements or provide them in a manner that does not comply with legal requirements;
  • Pay unequal wages to male and female employees performing work of equal value.

Administrative penalties

For the above violations, employers may be fined from VND 10 million to VND 20 million.

In addition, employers may also be subject to penalties for:

  • Paying wages late;
  • Failing to pay or underpaying employees' wages;
  • Failing to pay or underpaying overtime wages;
  • Failing to pay or underpaying wages for night work;
  • Failing to pay wages during work suspension as required by law;
  • Coercing or restricting employees in deciding how to use or spend their wages.

The applicable fines are determined based on the number of affected employees and may reach up to VND 100 million for violations involving a large number of employees. In addition to administrative fines, employers are required to pay all outstanding wages together with any applicable interest as prescribed by law.

8. Unlawful termination of labor contracts remains subject to administrative penalties (Article 18)

The Decree continues to impose administrative penalties for violations relating to the termination of labor contracts, including:

  • Failing to provide written notice of contract termination where required by law;
  • Failing to fully settle all statutory entitlements owed to employees;
  • Failing to pay or underpaying severance allowance or job-loss allowance;
  • Failing to certify employees' periods of participation in social insurance (SI) and unemployment insurance (UI);
  • Failing to return employees' documents or employment records upon termination of employment.

Administrative penalties

  • VND 2 million to VND 6 million for failing to provide written notice of labor contract termination as required by law.
  • VND 2 million to VND 40 million, depending on the number of affected employees, for failing to settle employees' lawful entitlements or complete the required procedures upon termination of the labor contract.
  • VND 10 million to VND 20 million where an employer restructures its organization, changes technology, or terminates employees for economic reasons without complying with the statutory requirements regarding the labor utilization plan or without notifying the competent state authority as required by law.

In addition to monetary penalties, employers are required to fully pay all applicable severance or job-loss benefits, complete the procedures for certifying employees' social insurance contribution periods, and compensate employees in accordance with the law where their legitimate rights and interests have been adversely affected.

9. Strengthened regulation of foreign employees (Article 13)

For foreign employees working in Vietnam, the Decree further strengthens employers' responsibilities for complying with procedures relating to work permits.

Violations include:

  • Failing to fulfill statutory reporting or notification obligations;
  • Employing foreign workers in a manner inconsistent with the contents of their work permits;
  • Failing to return work permits or certificates confirming exemption from work permit requirements when required by the competent authorities;
  • Violating regulations governing Vietnamese employees working for foreign organizations or individuals in Vietnam.

Administrative penalties

Depending on the nature of the violation, employers may be fined from VND 2 million to VND 20 million for failing to submit reports, provide required notifications, or comply with labor management obligations.

For employing foreign workers without a valid work permit or who do not satisfy the statutory conditions for employment, employers may be subject to administrative fines of up to VND 150 million. In addition, the foreign employee may be subject to deportation from Vietnam in accordance with applicable laws.

10. Greater emphasis on workplace dialogue and collective bargaining (Articles 21 and 22)

The Decree further reinforces employers' responsibilities in implementing workplace democracy regulations and maintaining dialogue with employees.

Employers may be subject to administrative penalties for violations such as:

  • Failing to establish or amend workplace democracy regulations;
  • Failing to organize periodic workplace dialogue with employees;
  • Failing to publicly disclose information that is required by law;
  • Failing to organize employees' conferences as required;
  • Failing to report on the implementation of workplace dialogue when requested by the competent authorities.

Administrative penalties

  • VND 10 million to VND 20 million for violations relating to workplace dialogue.
  • VND 2 million to VND 30 million, depending on the nature of the violation, for breaches relating to collective bargaining and collective labor agreements.

For more detailed information about this or related HR Advisory, please don't hesitate to contact us.
Website: https://kmc.vn/
Hotline: +84 81 489 4789 or +84 91 988 9331
Email: info@kmc.vn