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New policy in Vietnam: Sanctions to be imposed on social insurance violations

20:46 | 18/04/2020

From April 15, Decree No. 28/2020/ND-CP stipulating the sanctioning of administrative violations in social insurance officially takes effect. In particular, it will apply the specific sanction form and level for social insurance.

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new policy in vietnam sanctions to be imposed on social insurance violations
Photo: Bao cong thuong

According to Decree No. 28/2020/ND-CP: For employees who have acts of agreement with employers who do not participate in compulsory social insurance (SI), unemployment insurance, or participants who do not participate in the prescribed levels will be subject to a fine of between VND 500,000 (US$21) and 1,000,000 (US$42).

For employers, if annually not publicly posting information on social insurance payment of employees provided by social insurance agencies according to the provision 7, Article 23 of the Law on social insurance; failing to carry out procedures for paying unemployment insurance premiums for laborers; failing to provide or providing insufficient information on employees' compulsory social insurance and unemployment insurance payment when the employee or the Trade Union requires will be fined from 500,000 VND (US$21) to 1,000,000 VND (US$42), according to Financial Magazine.

In addition, according to Decree No. 28/2020/ND-CP, a fine of from VND 5,000,000 (US$210) to VND 10,000,000 (US$420) shall be imposed on employers who fail to provide accurate, complete and timely information and documents related to the payment and enjoyment of compulsory social insurance and unemployment insurance at the request of state agencies and social insurance agencies.

new policy in vietnam sanctions to be imposed on social insurance violations
Photo: Financial Times

Article 39 of the Decree specifies: A fine of from VND 1 million (US$42) to VND 2 million (US$84) shall be imposed upon an employee who commits any of the following violations: Declaring untruthfully, or correcting, erasing the contents related to social insurance and unemployment insurance but not seriously enough to be examined for penal liability; failing to notify the Employment Service Center when the employee has a job within 15 working days from the date of application for unemployment allowance, according to The Youth.

A fine of from 12% to 15% of the total amount of compulsory social insurance and unemployment insurance premium at the time of administrative violation, but not exceeding VND 75,000,000 (US$3,195) shall be imposed on an employer who has one the following acts: Late payment of compulsory social insurance and unemployment insurance; paying social insurance and unemployment insurance at variance with the regulations but not evading payment; payment of social insurance and unemployment insurance for an inadequate number of people but not evading payment.

A fine of from 18% to 20% of the total amount of compulsory social insurance and unemployment insurance premium at the time of administrative violations, but not exceeding VND 75,000,000 (US$3,195) shall be imposed on employers who do not pay social insurance but not seriously enough to be examined for penal liability. A fine of from VND 50,000,000 (US$2,130) to VND 75,000,000 (US$3,195) shall be imposed upon any employer that fails to pay compulsory social insurance and unemployment insurance but not serious enough to warrant examination for penal liability, reported by Financial Magazine.

Besides, the acts of counterfeiting, falsifying the contents of social insurance and unemployment insurance dossiers in order to benefit from the regime but not serious enough to be examined for penal liability will be fined from 5,000,000 (US$210) to 10,000,000 VND (US$420).

new policy in vietnam sanctions to be imposed on social insurance violations
Photo: Vietnam Law

In addition, Article 40 of the Decree stipulates a fine of between VND 1 million (US$42) and 2 million (US$84) when committing violations against each employee but not exceeding VND 75 million (US$3,195) for employers who fail to pay. the labor accident and occupational disease insurance within 10 days after receiving the money from the social insurance agency, reported by The Youth.

Also according to the decree, a fine of from 2 million VND (US$84) to 4 million VND (US$168) shall be imposed for violations against each worker, but not exceeding 75 million VND (US$3,195) for employers who commit one of the following acts: not submitting dossiers for participation in compulsory social insurance and unemployment insurance for employees within 30 days from the date of signing employment contracts; not returning social insurance books to employees ...

For vocational training institutions, if the institution organizes training course with inadequate period, it will be fined but the maximum is not more than VND 150 million (US$6,394); agreeing with concerned individuals and organizations to profit from the vocational training shall be subject to a fine of between VND 2 million (US$84) and VND 4 million (US$168).

A fine of from VND 10 million (US$420) to VND 20 million (US$840) shall be imposed upon employers who receive financial support for training, retraining or improving occupational skills qualifications to maintain jobs for workers not in compliance with the plans approved by competent agencies.

In addition to the sanction levels, the decree also stipulates remedies for violations.

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