Legal News

[Labor] Recent Labor Audits in the Northern Region of Vietnam

2024/09/12

In our experience, labor audits were usually conducted for companies or representative offices that have been established for more than 3-5 years. However, we have received reports that labor audits and social insurance audits have recently been strengthened in the northern region, and that the scope of audits has been expanded to include newly established companies that have been in business for 1-2 years.

Labor audits focus on the following items, and those found to be in violation risk fines depending on the nature of the violation.
1. labor contracts
2. wages and wage tables
3. work permits for foreign workers
4. social, medical, and unemployment insurance coverage
5. labor discipline and property liability
6. working hours and rest periods
7. compliance with occupational health and safety and fire codes (especially manufacturing industries are often audited)
8. periodic labor reports.

Recent practical examples include failure to establish and disclose wage tables, violations of social insurance regulations for foreign workers due to internal transfers, and violations of work permit application forms for foreign workers.

Regarding the frequency of labor audits, a voluntary check at least once a year is recommended, and will be conducted upon written request from labor authorities. Avoiding the Risk of Penalties
In order to do so, companies should periodically check their compliance with labor laws in accordance with Circular No. 17/2018/TT-BLDTBXH.

Audit reports can be submitted online and the link is as follows
http://tukiemtraphapluatlaodong.gov.vn

We offer a health check service as a preliminary measure against labor audits, aimed at checking in advance that companies are correctly implementing what they need to do and quickly supplementing them with the necessary procedures and obligations if any deficiencies are found. We encourage interested companies to contact us for more information.