PENALTIES FOR ADMINISTRATIVE VIOLATIONS OF FOREIGN EMPLOYEES WITHOUT WORK PERMITS

1. Work permits for foreign employees
One of the basic conditions for foreign employees to work in Vietnam is to have a work permit issued by a competent authority. However, there are some cases of work permit exemption for foreigners working in Vietnam, for example:
• Being the owner or capital contributing member of a limited liability company with the capital contribution value according to the Government's regulations.
• Being the Chairman of the Board of Directors or a member of the Board of Directors of a joint-stock company with the value of capital contribution in accordance with the Government's regulations.
• Being the head of a representative office or project or taking main responsibility for the operation of international organizations, foreign non-governmental organizations in Vietnam.
• Entering Vietnam with a term of less than 3 months to do marketing of a service; etc.
(Decree 154 of the Labor Code 2019).
2. Handling violations of work permits
2.1. For employers
“Employers who employ foreign employees without work permits shall be handled according to the provisions of law” – Clause 3, Article 153 of the Labor Code 2019. Accordingly, in Clause 4, Article 32 of Decree 12/2022, the fine rates for employers who employ foreign employees in Vietnam without work permits or Vietnam work permit exemption certificates, or employs foreign employees using expired work permits, as follows:
• 30,000,000 VND - 45,000,000 VND if the violation involves 01 – 10 employees;
• 45,000,000 VND - 60,000,000 VND if the violation involves 11 – 20 employees;
• 60,000,000 VND - 75,000,000 VND if the violation involves more than 20 employees.

2.2. For foreign employees
• Working without work permits or Vietnam work permit exemption certificates as prescribed by law;
• Using expired work permits.
Foreign employees will subject to a fine of 15,000,000 VND to 25,000,000 VND; concurrently being subject to deportation.
Thus, foreign employees and employers need to understand the above regulations and strictly follow them to avoid making mistakes in the process of working and doing business.