Penalties for not having a work permit

In today’s globalized economy, Vietnam is increasingly opening up its market. As a result, many individuals, businesses, and organizations have been employing foreign workers to support their operations. However, both employers and foreign workers have a limited understanding of the requirements for working in Vietnam, particularly regarding work permits. This lack of knowledge can lead to avoidable legal risks. To assist readers interested in this issue, this article will analyze the responsibilities of both foreign employers and employees, as well as the penalties for working without a work permit.

Legal basis for work permits 

• Labor Code 2019
• Decree 12/2022/ND-CP on penalties for administrative violations against regulations on labor, social insurance, and Vietnamese guest workers
• Decree 152/2020/ND-CP on foreign workers working in Vietnam and recruitment and management of Vietnamese workers working for foreign employers in Vietnam

Is it compulsory for foreigners to have a work permit to work in Vietnam?

According to Article 151 of the Labor Code, a foreign worker in Vietnam is a person of foreign nationality who must meet the following conditions:

• Be at least 18 years of age and have full civil capacity;
• Possess the necessary professional qualifications, technical skills, expertise, and work experience; be in good health as prescribed by the Minister of Health;
• Not be serving a criminal sentence, or have a criminal record that has not been expunged, or be subject to criminal prosecution under foreign or Vietnamese law;
• Hold a work permit issued by a competent Vietnamese state agency, except in cases where the foreign worker is not required to obtain a work permit.

The cases exempt from the requirement to obtain a work permit are stipulated in Article of the Labor Code and Article of the Decree, specifically:

(Article 154, Labor Code)

1. Individuals who are owners or limited partners of a limited liability company with a capital contribution as prescribed by the Government.
2. Chairpersons or members of the Board of Directors of a joint-stock company with a capital contribution as prescribed by the Government.
3. Heads of representative offices, projects, or individuals primarily responsible for the operations of an international organization or foreign non-governmental organization in Vietnam.
4. Foreigners entering Vietnam for less than three months to offer services.
5. Foreigners entering Vietnam for less than three months to resolve complex technical or technological issues that affect or may affect production or business operations, and which cannot be addressed by Vietnamese experts or other foreign experts currently in Vietnam.
6. Foreign lawyers who have been granted a law practice license in Vietnam following the Law on Lawyers.
7. Cases as prescribed by international treaties to which the Socialist Republic of Vietnam is a party.
8. Foreigners married to Vietnamese citizens and residing in Vietnam.
9. Other cases as prescribed by the Government.

(Article 7, Decree 152/2020/ND-CP)

In addition to the cases stipulated in clauses 3, 4, 5, 6, 7, and 8 of Article 154 of the Labor Code, foreign workers who do not fall under the categories requiring a work permit are:

1. Owners or limited partners of a limited liability company with a capital contribution of VND 3 billion or more.
2. Chairpersons or members of the Board of Directors of a joint-stock company with a capital contribution of VND 3 billion or more.
3. Individuals moving within the scope of 11 service sectors committed by Vietnam to the World Trade Organization, including business, information, construction, distribution, education, environment, finance, health, tourism, culture and entertainment, and transportation.  
4. Foreigners entering Vietnam to provide professional and technical consulting services or to carry out other tasks to support research, development, appraisal, monitoring, evaluation, management, and implementation of programs and projects using official development assistance (ODA) as prescribed or agreed upon in international treaties on ODA signed between the competent authorities of Vietnam and foreign countries.
5. Individuals are granted a license to operate information and press activities in Vietnam by the Ministry of Foreign Affairs, as prescribed by law.
6. Individuals sent to Vietnam by a competent foreign authority to teach or conduct research at international schools under the management of foreign diplomatic missions or the United Nations, or at institutions established under agreements to which Vietnam is a party.
7. Volunteers as defined in Clause 2, Article 3 of this Decree.
8. Foreigners entering Vietnam to work as managers, executives, experts, or technical workers for less than 30 days and no more than 3 times in one year.
9. Foreigners entering Vietnam to implement international agreements signed by central or provincial agencies or organizations by the law.
10. Students studying at foreign schools or training institutions who have agreements to intern at agencies, organizations, or enterprises in Vietnam; trainees and interns on Vietnamese ships.
11. Family members of members of foreign diplomatic missions in Vietnam as defined in Point l, Clause 1, Article 2 of this Decree.
12. Individuals with diplomatic passports work for state agencies, political organizations, or socio-political organizations.
13. Individuals are responsible for establishing a commercial presence.
14. Foreigners confirmed by the Ministry of Education and Training to enter Vietnam for teaching or research purposes.

 

Therefore, except for cases where foreign workers are exempt from the work permit requirement, foreign workers wishing to work in Vietnam must have a work permit, otherwise they will be subject to the applicable penalties.

Responsibilities of the employer and foreign worker

According to Article 153 of the Labor Code, the responsibilities of the employer and foreign worker are as follows:

1. Foreign workers must present their work permits when requested by a competent state agency.
2. Foreign workers working in Vietnam without a work permit shall be subject to deportation or expulsion as prescribed by the law on entry, exit, transit, and residence of foreigners in Vietnam.
3. Employers who employ foreign workers without a work permit shall be subject to legal sanctions.

Consequently, foreign workers are obligated to present their work permits upon request by a competent state agency. Failure to do so may result in deportation or expulsion as prescribed by law. Moreover, employers who employ foreign workers without a valid work permit shall be subject to legal sanctions.

Penalties for working without a work permit

Pursuant to Clauses 3, 4, and 5 of Article 32 of Decree 12/2022/ND-CP, foreign workers working in Vietnam (except for cases exempt from work permit requirements) without a valid work permit shall be subject to the following fines:

1. Foreign workers: The primary sanction is a fine ranging from VND 15,000,000 to VND 25,000,000. Depending on the nature and severity of the violation, additional sanctions such as deportation may apply.
2. Employers: The primary sanction is a fine, and the amount of the fine depends on the number of foreign workers employed without a work permit. For individual employers, the fine shall be…

• For 1-10 individuals, the fine shall range from VND 30,000,000 to VND 45,000,000.
• For 11-20 individuals, the fine shall range from VND 45,000,000 to VND 60,000,000.
• For 21 or more individuals, the fine shall range from VND 60,000,000 to VND 75,000,000.

Note: For organizations, the fine shall be doubled compared to that imposed on individuals (pursuant to Clause 3, Article 6 of Decree 12/2022/ND-CP).

Siglaw Law Firm’s affordable work permit consulting services

Understanding the difficulties, Siglaw Law Firm now provides professional work permit services for managers, helping clients quickly obtain work permits for foreign workers with the following benefits:

One-year free legal consultation on labor, insurance, and personal income tax related to foreign workers after using the service.

Free consultation and guidance on reporting procedures related to foreign workers.

“Customer satisfaction is the measure of Siglaw’s success. To us, every client is a brand ambassador!” 

Therefore, Siglaw pays meticulous attention to each client, providing the most attentive service. When using Siglaw’s work permit consulting services, you will receive the following dedicated support:

• Consulting and answering legal regulations on work permits
• Advising on legal advantages in specific cases
• Consulting on labor law regulations for foreign workers
• Consulting on reporting procedures for the use of foreign workers
• Consulting on tax and social insurance laws for foreign workers
• Moreover, we commit to the following after providing our services:

Commitment to the most reasonable and cost-effective rates in the market.

Commitment to the fastest completion time.

• No hidden fees: We guarantee no additional costs will be incurred during the service.
• 24/7 free consultation: We provide free legal advice to foreign workers around the clock.
• Risk management for foreign workers: We help protect foreign workers from legal risks.
• Dedicated support: Our team provides enthusiastic, dedicated, and attentive support to clients and partners, fostering trust and peace of mind.

With many years of experience in providing work permit and temporary residence card consulting services for foreigners in Vietnam, and having successfully served over 5,000+ clients, we are confident that Siglaw’s work permit services for foreign workers will surely satisfy our clients and save them maximum time and costs.

Siglaw Law Firm

Phone: (+84) 961 366 238

Email:

• vphn@siglaw.com.vn
• vphcm@siglaw.com.vn

Headquarters: No.44/A32-NV13, Gleximco A, Le Trong Tan street, An Khanh, Hoai Duc, Ha Noi, Vietnam.

Southern branch: A9.05 BLOCK A, SkyCenter Building, 5B Pho Quang Street, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam.

Central branch: 177 Trung Nu Vuong, Hai Chau District, Da Nang City

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