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Vietnam Labor Law Compliance: Guidelines for Self-Inspection
In 2018, the Vietnamese government issued Circular 17/2018/TT-BLDTBXH (“Circular 17”) regulating self-inspection of labor law compliance by enterprises. The Circular, already in effect since January 1, 2019 provides guidelines for self-inspection of compliance with labor law, online reporting, and responsibilities of employers, labor unions, and the state’s inspection agencies.
According to Circular 17, the timing of self-inspection is at the discretion of the enterprises, but they need to do it at least once a year and must retain all the files of the results.
If they fail to conduct the self-inspection or report the results, they may be subjected to a labor law compliance inspection or could incur penalties.
Scope of self-inspection
The self-inspection needs to cover the following according to Circular 17:
- periodical labor reports;
- employee recruitment and training
- signing and execution of labor contracts;
- communication, negotiation, and the signing of collective labor agreements
- Working hours and rest hours;
- wages paid to employees;
- organization and implementation of occupational safety and hygiene;
- implementation of regulations for female employees, minor employees, elderly employees, disabled employees and foreign employees;
- formulation and registration of labor rules, labor discipline, and physical compensation
- participation and deduction/contribution of compulsory social insurance, unemployment insurance and health insurance for the relevant employees;
- handling of labor-related disputes and complaints; and
- other activities deemed necessary by the employer.
Employer obligations
The employer needs to conduct the self-inspection as prescribed in Circular 17. They also need to register an account and submit the results on the website (http://tukiemtraphapluatlaodong.gov.vn) as required by the state inspection agency.
In addition, employers need to work with the labor union in implementing the recommendations put forth by the state inspection agency for labor affairs.
Procedures
The employer needs to set up a self-inspection delegation and create an account on the website (http://tukiemtraphapluatlaodong.gov.vn) to receive a self-inspection note.
The delegation should be comprised of a delegation head (employer representative) and members who are in charge of salary, occupational safety and health work, labor union, and other departments as decided by the employer.
Next, the delegation needs to compare the company’s activities with the labor law in force and analyze if it complies with the law. If there are any acts against the labor law, they need to suggest measures to ensure compliance. The conclusion of the delegation needs to be posted on the website (http://tukiemtraphapluatlaodong.gov.vn) and updated in case there are changes in the labor law.
In case of activities which require inspections visits to production facilities or workplace of the employees, the delegation needs to pay a visit to check for compliance.
The self-inspection dossier should include the self-inspection note, conclusion of the inspection, documents on the establishment of the delegation, and other relevant documents created during inspections.
The final step is to work with the labor union and create an online report of the result as per regulations. The enterprise, including its branches and offices in local areas, need to send the online report to their authorities and Inspectorate of the Department of Labour – Invalids and Social Affairs in places where their entities operate.
Vietnam Briefing is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in Hanoi and Ho Chi Minh City. Readers may write vietnam@dezshira.com for more support on doing business in Vietnam.
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