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Question 120: Can Employers refer to the regulations on internal matters that have been neither included in the ILRs nor registered with competent labour management agencies to impose disciplinary actions on Employees who have violations? Why is that?


Pursuant to Article 128.3 of the Labor Code, Employers are prohibited from imposing disciplinary actions on the acts that are not specified in the ILRs.

According to labour law, the ILRs are required of Employers who hire 10 or more Employees, which specify the conducts breaching labour discipline, labour disciplinary actions, and other material responsibilities[1]. Accordingly, Employers must consult the Employee collective’s representative organisation about the ILRs[2], which must also be registered with the provincial labour management agency[3] and the key contents of which must be posted at the workplace[4]. After the things above have been done, the ILRs will come into effect 15 days after the date the competent agency receives the registration dossier for the ILRs, except where amendment, supplement or re-registration is required[5].

Therefore, for Employers who hire 10 or more Employees, the ILRs registered with the competent labour management agency is the only basis which Employers may refer to impose disciplinary actions, and Employers cannot refer to the regulations on internal matters which have not been added to the ILRs to impose disciplinary actions. Otherwise, Employers may be administratively sanctioned with a fine of up to VND10 million for individuals and VND20 million for entities, and they must accept Employees back to work in the case of dismissal[6].

Employers who hire less than 10 Employees may refer to the ILRs which are not required to be registered with the competent labour management agency (if any) or the provisions on labour disciplinary actions, material responsibilities prescribed in LCs to impose corresponding disciplinary actions on Employees.[7]

Therefore, to have a basis for imposing disciplinary actions lawfully, Employers who hire 10 or more Employees must include internal rules into the ILRs which will be registered with the provincial labour management agency, provided that these internal rules are not illegal.

360 Article 119 Labor Code

[2]Article 119.3 Labor Code

[3]Article 120.1 Labor Code

[4]Article 119.4 Labor Code

[5]Article 120.3 Labor Code

[6]Articles 3.1 and 15.3 (c) Decree 95/2013/NĐ-CP dated 16/10/2015 as amended and supplemented by Decree 88/2015/NĐ-CP dated 07/10/2015

[7]Article 10.4 Circular 47/2015/TT-BLĐTBXH dated 16/11/2015

Bài viết trướcQuestion 119: If Employers provide an annual leave schedule after consulting their Employees about this issue and inform them of this schedule in advance, but Employees still do not take annual leave as scheduled, will they be paid for the unused annual leave days when they resign, lose their jobs or stop working as a result of other reasons? Why is that?
Bài viết tiếp theoQuestion: Pursuant to Article 130 of the Labor Code: a. Employees who cause damage to devices, equipment or conduct other acts causing damage to Employer’s properties must pay compensations. If Employees cause slight damage due to their negligence with the value of less than 10 months of the area minimum wage announced by the Government and applicable at the workplace, Employees must compensate to the tune of an amount of 3 months’ salary at a maximum that is monthly deducted from their salary; and b. If Employees lose any tools, equipment, properties or other assets which are handed to them by their Employers, or use supplies more than the norms permitted, they must compensate part or the whole value of such things at the market price; if a liability agreement is available, they must pay compensation as prescribed in this agreement; in case of natural calamities, fires, enemy sabotage, epidemics, disasters, objective occurrences which are unpredictable and irrecoverable despite all measures taken, Employees will not have to pay compensation. What are the “other acts” in this context? Assets here mean tangible assets only or include enterprises’ intangible assets (e.g. trademarks, prestige etc.). For other violations that also cause material damage to Employers but do not fall into circumstances above, how do Employees pay compensations?
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