Vietnam tightens penalties for illegal foreign workers

Vietnam’s Decree No. 283/2026/ND-CP takes effect on September 10, 2026, superseding Decree No. 12/2022/ND-CP to strengthen enforcement against labor violations involving foreign workers. The update broadens penalties beyond unauthorized employment to cover notification lapses, incorrect job assignments, and document fraud—issues that previously caused significant compliance failures and operational setbacks.

The revised decree retains existing fines for working without permits or using expired documents but introduces tighter oversight. Employers must now submit advance notice to authorities before foreign workers begin employment or relocate between provinces. It also establishes clear consequences for failing to return invalidated permits or exemption certificates by deadlines, with penalties increasing proportionally to the number of affected employees.

Workers found without proper authorization—whether due to expired permits or no permits at all—will be fined between VND 15 million and 25 million (approximately US$571 to $952). Employers hiring such workers face fines double that amount per individual, alongside possible business interruptions. In 2019, An Huy 1 Co. Ltd received a VND 135 million penalty and a two-month hiring ban after employing 193 Chinese nationals without valid permits.

New Penalties for Notification and Document Failures

The decree’s penalty framework categorizes violations by type, with fines adjusted based on severity. Key adjustments include:

• Notification failures incur fines of VND 1–3 million for individuals and VND 2, 6 million for organizations.
• Mismatched work permits trigger penalties of VND 5, 10 million per worker, capped at VND 75 million, while companies face doubled fines.
• Unauthorized employment penalties escalate with the number of violations: VND 30, 45 million for 1, 10 workers, rising to VND 60, 75 million for 21 or more.
• Falsified documents carry the highest penalties—VND 40, 60 million for individuals and VND 80, 120 million for businesses.

Notification and document-return failures require closer control. Decree 283 expressly penalizes notification failures by referring to the corresponding duties under Decree 219. For the specific exempt categories that are not required to obtain an exemption certificate, the employer must notify the competent authority at least three working days before the employee is expected to begin work. Employers must also give at least three working days’ notice before a foreign worker holding a work permit or exemption certificate works for the same employer in another province or centrally governed city.

For the cases covered by Articles 31(1) and 33(1) of Decree 219, employers must recover and return the invalidated work permit or exemption certificate to the issuing authority, together with the required report, within 15 days after the document ceases to be valid. Where the competent authority orders revocation under Articles 31(2) or 33(2), the employer must return the document following the authority’s notice.

Employers operating in sectors with heavy foreign labor reliance, such as manufacturing, construction, and hospitality, will need to adjust their hiring processes. The decree’s stricter timelines for permit renewals and inter-provincial transfers may require additional administrative staff or external compliance consultants.

Foreign workers themselves must now verify permit validity more frequently, as the decree aligns with Decree No. 219/2025/ND-CP, which governs foreign worker employment. Violations completed before 10 September are generally handled under the rules then in force. Violations that began earlier but continue after Decree 283 takes effect will be handled under the new decree. Employers should therefore correct live gaps before implementation rather than assume an earlier start date preserves the old framework.

Employers must post updated compliance notices in workplaces by August 1, 2026, informing staff about the new requirements. Non-compliance with this notice obligation carries a separate fine of VND 5, 10 million.

Foreign workers should review their permit statuses before September 10, as the decree does not provide grandfather clauses for expired documents. Those needing renewals must apply at least 10 days and no more than 45 days before expiry, per Decree 219.

Stricter Enforcement and Worker Reporting Mechanisms

The decree’s enforcement will be overseen by provincial labor departments, which have been instructed to prioritize cases involving repeated violations. Companies with histories of non-compliance may face extended hiring bans beyond the standard penalties.

The Ministry of Labor has established a hotline for foreign workers to report violations, with multilingual support available. Workers who provide actionable information may receive compensation for their assistance.

The Ministry of Labor has allocated additional funding to support regional compliance officers, ensuring that all provinces have sufficient resources to enforce the new rules.

Employers that fail to provide foreign workers with copies of their permit approval letters face fines of VND 2, 5 million, regardless of other violations.

Foreign workers arriving in Vietnam after September 10 must submit biometric data as part of their permit applications, a step designed to prevent identity fraud.

Employers must maintain accurate records of foreign worker movements, including notifications for inter-provincial transfers and document returns. Failure to comply may result in fines.

Foreign workers who arrive in Vietnam without proper documentation may face deportation, in addition to fines.

Employers that fail to cooperate with inspections risk having their foreign worker permits revoked en masse, a measure intended to deter systemic non-compliance.

Expanded Compliance Obligations for Employers and Workers

The decree’s provisions apply to all foreign workers, including those on short-term contracts, seasonal assignments, and intra-company transfers. No exceptions are granted based on employment duration or job type.

Foreign workers who believe they have been penalized unfairly may appeal within 30 days of receiving a notice, though appeals must be substantiated with evidence. The burden of proof lies with the worker in these cases.

Employers must assign an owner for recovering and returning permits or exemption certificates, submitting the required report, and ensuring compliance with notification duties.

Foreign workers who change jobs must inform their previous employer within 7 days of the transfer, or risk fines for failing to meet notification requirements.

Employers that fail to report foreign worker terminations within 14 days face fines of VND 3, 7 million, regardless of other violations.

Employers that fail to report changes in foreign worker job functions within 30 days face fines of VND 4, 8 million per change.

Foreign workers who arrive in Vietnam with permits issued for different job titles than their actual roles will be fined and required to correct their status immediately.

Employers that fail to maintain a physical record of foreign worker permits at their primary workplace face fines of VND 5, 10 million.

Employers that fail to provide foreign workers with written contracts in their native language face fines of VND 2, 5 million per worker.

Employers that fail to provide foreign workers with mandatory health insurance coverage face fines of VND 3, 7 million per worker.

Employers that fail to provide foreign workers with access to labor rights information face fines of VND 1, 3 million per worker.

Employers that fail to provide foreign workers with mandatory orientation on labor laws face fines of VND 1, 3 million per worker affected.

Employers that fail to provide foreign workers with written explanations of their labor rights face fines of VND 1, 3 million per worker.

Employers that fail to provide foreign workers with access to grievance mechanisms face fines of VND 1, 3 million per worker.

Detailed Fines for Administrative and Recordkeeping Violations

Employers that fail to report foreign worker disciplinary actions within 14 days face fines of VND 3, 7 million per incident.

Employers that fail to report foreign worker promotions within 30 days face fines of VND 4, 8 million per promotion.

Employers that fail to maintain a register of all foreign worker permits at their secondary work locations face fines of VND 3, 6 million.

Employers that fail to maintain a digital backup of all foreign worker documents face fines of VND 5, 10 million.

Employers that fail to maintain a digital record of all foreign worker permit renewals face fines of VND 5, 10 million.

The decree’s provisions will be enforced uniformly across all Vietnamese provinces to ensure national consistency.