VIETNAM – LABOR LAW ALERT – UNPRECEDENTED – IMPRISONMENT JAIL FOR LABOR LAW VIOLATION  – NEW PENAL CODE SANCTIONS! WHAT YOU MUST KNOW:

 

At the time of this article, the Law on Amendment and Supplementation is presumably in the technical correction phase at the National Assembly and the final official version will take some weeks or even months to be passed. But based on the latest draft submitted for the National Assembly’s approval dated 10 March 2017, we understand that some of the key changes in the Law on Amendment and Supplementation in light of related-employment crimes are as follows.

  1.            Crime of illegal dismissal of employees is still existing!

First and foremost, it is worth noting that crime of illegal dismissal of employees shall be subject IMPRISONMENT/ JAIL of up to one (1) year.

Strictly speaking, it is most likely that the law-makers of Vietnam do not have any intension to lighten the statutory penalties for this crime. Therefore, for avoidance of legal risks, all and every employers and/or their persons-in-charge are strongly recommended to stay as cautious as possible whenever conducting any behaviors (including but not limited to illegal dismissal acts) that may make the dismissed employees or their families fall into difficult situations or go on strike.

  1. Clearer description of crime on employment of under 16 employees

With respect to this crime, Law on Amendment and Supplementation expressly introduces a formal checklist of (a) hard, harmful or dangerous works and (b) extremely hard, harmful or dangerous works for the purpose of determination of the crime.

In addition, one more additional penalty has just been supplemented where the offender in question might be forbidden from practicing his/her profession or doing certain jobs for up to five (5) years.

  1. Violations against regulations of law on occupational safety and hygiene

Under Law on Amendment and Supplementation, any person who violates regulations of law on occupational safety and hygiene, as the case may be, shall be subject to:

(i)            a fine of up to VND 100 million (equivalent to US$4,444);

(ii)           up to three-year non-custodial reform; or

(iii)          up to twelve-year imprisonment.

Please be noted that prohibition of the offender from holding certain positions or doing certain jobs for up to five (5) years may also be applied as an additional penalty.

ACTION RECOMMENDED: Finally, what we advise you to carry out right this second would be:

  • to update your Internal Labour Rules with a Vietnam-law fully-compliant dismissal procedure; and
  • to keep your managing team informed of these new stipulations soonest possible.

We are fully qualified and very pleased to assist you with your implementation of these necessary actions.

***

Please do not hesitate to contact Oliver Massmann under omassmann@duanemorris.com if you have any questions or want to know more details on the above. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

THANK YOU !