Vietnam has updated its penalties for labor, social insurance and foreign-worker violations. The new rules come from Vietnam Decree No. 283/2026/ND-CP on Labor and Social Insurance Penalties, which will take effect on September 10, 2026 and replaced Decree No. 12/2022/ND-CP.
Management should check that the company records match the people actually working at each site. The employee list, the contracts, payroll and the insurance filings should all agree. Foreign-worker papers should match the real job and the real work location. The company should also be ready to receive and answer an official notice.
What Vietnam Decree No. 283/2026/ND-CP on Labor and Social Insurance Penalties Changes for Employers
This Decree is about penalties, not new duties. The duties themselves still come from employment law in Vietnam and from the rules on social insurance and foreign workers. Companies should keep following the rules on contracts, pay, working time, termination and worker records.
Company fines in the Decree rise with the number of employees affected, so the same mistake costs a large factory far more than a small office. Exposure also grows the longer a problem is left unfixed.
Worker registration is now tied more closely to social insurance filings. If required worker details are missing or have not been updated, the company can be fined and may also have to correct the related insurance records.
Foreign-worker files need close attention. The employer, the job, the work location and the working period should all match the permit or exemption, and the rules for employing foreign workers under Decree No. 219/2025/ND-CP. This is the heaviest penalty area in the Decree for most FDI employers. A company fine can reach VND150 million, and the worker may also be expelled from Vietnam.
Late insurance payment and insurance evasion are now treated as two different violations, and evasion is the more serious of the two. The fine is worked out from the unpaid amount rather than from a fixed figure. The company may still have to pay the missing contribution, plus the extra amount charged for paying late. Paying the fine does not clear those debts.
The Decree also punishes misuse of unpublished information from official worker and labor-market databases, and the company fines there are high.
Separate privacy rules cover the company’s own employee files. That matters when employee information goes to an outside payroll provider, an HR system or a parent company. Check the Vietnam Personal Data Protection Law before sharing or transferring that information.
A penalty case can now be handled electronically where the conditions for it are met, although not every case will be. Keep the company’s registered email and other official contact details up to date, and keep proof of any reply.
Where FDI Companies Should Look First
Start with one employee list for each office, factory or other work site. Compare it against contracts, payroll, personal income tax records, labor reports and social insurance filings. Names, start dates and work status should match across all of them.
Check each foreign worker one by one. A permit can still be valid even though the actual job has changed. Look at the employer, the job title, the work location and the expiry date. Where no permit is required, keep the exemption paper or other approval on file.
A company using electronic employment contracts in Vietnam should be able to pull up any signed contract quickly. The contract should agree with payroll, working-time records and insurance information.
Then check how official notices actually reach the company. A letter sent to an old address, or an email account nobody watches, creates a problem that was easy to avoid. Write down who checks each official channel and who is responsible for replying.
A Short Records Review
HR checks contracts, employee details, labor reports and foreign-worker papers.
Payroll checks names, pay periods and the figures used for insurance filings.
Finance confirms the insurance payments were made and keeps proof of payment.
Site managers confirm who is actually working, where, and in what job.
Legal or the company secretary checks official contact details and any open requests from the authorities.
Where the records do not match, find out why and correct the right document. Keep the new filing, the payment record, the confirmation email or whatever else proves the fix.
The Decree gives no general grace period for a violation that is still running. A problem that ended before the new rules started will normally be handled under the earlier ones. A problem that has continued since then may be handled under the new Decree.
What Happens If a Problem Is Found
The amount depends on the violation and the facts. Separate problems can be penalized separately, so the maximum stated for one violation is not a ceiling for the whole inspection.
Some regulated activities can also be suspended for a period, such as certain safety training and technical inspection work.
The normal time limit for a labor or social insurance penalty is one year. Two years applies to violations involving Vietnamese workers sent abroad under contract.
Frequently Asked Questions
Q1: Does every company need new employment contracts?
No. The Decree does not require existing contracts to be replaced. Check that each contract is complete, can be found, and matches the worker’s real job and the rest of the company records.
Q2: Can the company settle a foreign-worker case by paying the fine?
No. Paying the fine does not fix the work-authorization problem. The company should stop or correct the assignment as required. The worker may face a separate penalty and possible expulsion.
Q3: What should a director check with HR?
Ask for one current employee list for every site. Ask HR and payroll to compare it against contracts, insurance filings and foreign-worker papers. If something does not match, fix it.
Conclusion
Under Vietnam Decree No. 283/2026/ND-CP on Labor and Social Insurance Penalties, the safest position is to ensure that the records of the people working for the company, the papers held by HR and the filings made to the authorities should match.
About Author
Written by Hanh Pham, Specialist at ANT Lawyers, and reviewed by Tuan Nguyen, Lawyer at ANT Lawyers. This alert is general information on Vietnamese law and is not legal advice for a particular company or transaction.
About ANT Lawyers, a Law Firm in Vietnam
Founded in 2012, ANT Lawyers is a Vietnam law firm with offices in Hanoi, Ho Chi Minh City and Da Nang. Our employment lawyers advise on hiring, work permits, internal labour regulations and termination disputes in Vietnam. We combine legal analysis with practical understanding of Vietnam’s regulatory environment and local administrative practice.
General Disclaimer
This article is for general informational purposes only, does not constitute legal advice, and does not create a lawyer-client relationship. Vietnamese laws, regulations and administrative practice change over time, and the correct position for any matter depends on its specific facts and the rules in force when action is taken. Verify the current position before relying on anything stated here, and consult qualified counsel on your specific situation.
How ANT Lawyers Could Help Your Business?
You could reach ANT Lawyers for advice via email ant@antlawyers.vn or call our office at (+84) 24 730 86 529