Decree 283/2026/ND-CP on administrative penalties in the fields of labor, social insurance, and Vietnamese workers working abroad under contract was issued on August 23, 2026 and officially took effect on September 10, 2026, replacing Decree 12/2022/ND-CP, which had been in force for more than four years. With 6 chapters and 68 articles, the decree not only updates fine amounts but also adds several entirely new categories of violations, particularly provisions related to labor registration, labor-use declarations, and the employment of foreign workers - matters that FDI enterprises need to pay particular attention to.
The decree applies to administrative violations by individuals and organizations in three areas: labor (recruitment, labor contracts, wages, working hours, occupational safety and health, and foreign workers), social insurance, and Vietnamese workers working abroad under contract. For the same violation, the fine imposed on an organization is twice the fine imposed on an individual. The statute of limitations for sanctioning is 1 year for violations in labor and social insurance, and 2 years for violations related to workers going abroad to work. In addition to fines, the decree also provides for supplementary sanctions such as confiscation of exhibits, revocation of licenses, suspension of operations for a fixed term, and deportation of foreign workers found in violation.
Compared to Decree 12/2022, violations related to employment services, previously grouped under a single article, are now split into three separate articles covering public employment services, private employment service enterprises, and other violations; violations related to compulsory social insurance and unemployment insurance are likewise split into separate articles for late payment and for evasion. The decree also adds an entirely new article on violations of labor registration requirements - a provision that did not exist under Decree 12/2022.
Businesses that fail to declare their use of labor, fail to maintain an adequate labor management register, or collect unlawful recruitment fees may be fined VND 1-3 million; discriminatory recruitment practices or employing workers who do not meet job requirements are fined VND 5-10 million; and taking advantage of recruitment to exploit or force labor may be fined VND 50-75 million. For failure to register labor use, the fine is scaled by headcount:
2.1.1. VND 5-10 million for violations involving 1-50 workers;
2.1.2. VND 10-15 million for violations involving 51-100 workers;
2.1.3. VND 15-20 million for violations involving 101 workers or more.
Failing to enter into a written labor contract for work lasting one month or more, retaining an employee's identity documents or original certificates, or paying a probationary wage below 85% of the official wage are all sanctionable, with fines from VND 2-25 million depending on the act and the scale of the violation. Notably, late payment of wages or paying wages below the regional minimum wage may be fined up to VND 50-75 million - a category business should review carefully, given that the regional minimum wage has been adjusted repeatedly in recent years.
This is the most notable group of provisions for foreign-invested enterprises. A foreign worker in Vietnam without a work permit or exemption certification, or using an expired document, may be fined VND 15-25 million and subjected to deportation. On the employer's side:
2.3.1. Recruiting or employing foreign workers without a work permit: fined based on the number of workers, up to VND 75 million per organization for violations involving 21 workers or more;
2.3.2. Employing a foreign worker outside the scope of work authorized in the permit, or failing to recover and return the permit upon termination: fined VND 5-10 million per worker, up to VND 75 million;
2.3.3. Forging documents or dossiers to apply for a work permit: fined VND 40-60 million.
For late payment of compulsory social insurance, the fine is calculated at 12-15% of the total amount due at the time the violation record is made, capped at VND 75 million; evasion of social insurance contributions is handled under a separate provision to clearly distinguish the severity of the violation. Businesses that commit fraud or falsify records to claim social insurance benefits are fined VND 10-20 million.
Decree 283/2026/ND-CP has already officially taken effect as of September 10, 2026, so businesses need to act now rather than wait. Priority actions include:
3.1. Reviewing all labor declaration and registration records and reconciling them against the actual number of workers currently employed;
3.2. Checking the validity of work permits and exemption certifications for all foreign workers currently employed, paying particular attention to permits nearing expiry or cases where the actual job has changed from what was authorized;
3.3. Reviewing labor contracts, probationary wages, and official wages currently applied, to ensure none fall below the applicable regional minimum wage;
3.4. Reconciling compulsory social insurance payment status and fully settling any outstanding late payments to avoid the percentage-based fine;
3.5. Consulting legal advisors for a comprehensive assessment of compliance risk under the new decree, particularly for businesses employing a significant number of foreign workers.
The above is an overview of the most notable fines under Decree 283/2026/ND-CP in the fields of labor and social insurance. With fines significantly increased across many categories of violations - particularly those related to foreign workers - businesses need to proactively review their compliance to avoid unnecessary legal and financial risk. For advice on labor law compliance, work permits for foreign nationals, or other legal matters related to the employment of labor, Lexsol is always ready to accompany you and provide suitable legal solutions.
Read more: What is work permit and the conditions for issuance of work permit?
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