Question: I am working for a company that imposes a penalty of 500,000 VND each time an employee arrives late. Is this regulation lawful, or does it violate labor laws? I hope to receive clarification from a lawyer.
Answer:
Pursuant to Article 128 of the Labor Code:
“Article 128. Prohibited acts when handling labor discipline
1. Infringing upon the body or dignity of the employee.
2. Using monetary fines or wage deductions as a form of labor discipline.
3. Imposing labor discipline on acts that are not specified in the internal labor regulations.”
Accordingly, employers are not allowed to impose monetary fines or deduct wages as a measure of labor discipline.
If they violate this provision, employers may be subject to penalties under Clause 3 Article 15 of Decree No. 59/2013/NĐ-CP:
“Article 15. Violations of regulations on labor discipline and material responsibility.
4. A fine of between VND 10,000,000 and 15,000,000 shall be imposed on an employer who commits any of the following acts:
a) Infringing upon the body or dignity of the employee when handling labor discipline;
b) Using monetary fines or wage deductions as a substitute for labor discipline; …”
Therefore, imposing monetary fines on employees for tardiness is not permitted under Vietnamese labor law.
Consultation: Labor Law Services
