Question:
During peak seasons, my company often asks employees to work overtime to meet order deadlines. Under the current regulations, what are the limits on requiring employees to work overtime, and what penalties apply for violations from 10 September 2026?
Answer:
Under Article 107 of the 2019 Labor Code, an employer may require employees to work overtime only if all of the following conditions are met:
- The employee must consent. The consent must relate to the specific time, place and work involved. An employer should not automatically treat an employee staying at the office or answering messages after hours as consent to overtime.
- Overtime must not exceed 50% of the normal daily working hours. Where normal working hours are calculated weekly, total normal and overtime hours must not exceed 12 hours per day.
- Total overtime must not exceed 40 hours per month and, as a general rule, 200 hours per year. Certain specific sectors or occupations may work up to 300 overtime hours per year, subject to the conditions prescribed by law.
- Where overtime exceeds 200 and up to 300 hours per year, the employer must notify in writing the Department of Home Affairs where the overtime is organized and where the head office is located.
In addition, Article 108 of the 2019 Labor Code provides for special cases that are not subject to the above limits, such as complying with mobilization orders to ensure national defense and security, or working to protect lives and property when preventing or remedying the consequences of natural disasters, fires, dangerous epidemics and catastrophes.
Penalties from 10 September 2026 (Decree No. 283/2026/ND-CP):
- Requiring overtime beyond the permitted hours (Article 24): fines are tiered by the number of affected employees: VND 5 – 10 million (1 – 10 employees); VND 10 – 20 million (11 – 50); VND 20 – 40 million (51 – 100); VND 40 – 60 million (101 – 300); and VND 60 – 75 million (301 or more). The highest tier also applies to failing to ensure rest breaks during working hours or between shifts.
- Requiring overtime without the employee’s consent: a fine of VND 20 – 25 million for an individual employer and VND 40 – 50 million for an organization.
- Failing to give written notice to the Department of Home Affairs for overtime of more than 200 and up to 300 hours per year: VND 2 – 5 million for an individual and VND 4 – 10 million for an organization.
- Violating regulations on weekly rest, annual leave, or public holidays: VND 10 – 20 million for an individual and VND 20 – 40 million for an organization.
Conclusion:
Overtime is not an automatic right of the employer. It is lawful only with the employee’s consent and within the statutory limits. Because fines scale with the number of affected employees, large enterprises and those that regularly work overtime during peak seasons face significant exposure. Enterprises should proactively review their internal labor rules, obtain written overtime consent for each overtime period, closely track each employee’s overtime hours, and make the required notifications to the authorities. If your company needs detailed advice on organizing overtime, reviewing internal labor rules, or handling issues arising from labor inspections, please contact SB Law for timely assistance from our team of lawyers and experts.
