Vietnam Tightens Foreign Worker Penalties Under New Decree Effective September 10

Effective September 10, 2026, Vietnam will implement Decree No. 283/2026/ND-CP, a new decree that updates the administrative penalty framework for labor, social insurance, and related violations. This decree replaces Decree No. 12/2022/ND-CP and specifically enhances penalties for foreign worker compliance. Key updates include stricter enforcement against unauthorized employment, the use of expired work permits, and employing foreign workers without the necessary authorization. The new framework also introduces more specific offenses related to notification duties, assignments that do not match approved authorizations, and the recovery and return of documents. These provisions align with Decree No. 219/2025/ND-CP, which governs foreign worker employment since August 7, 2025. Penalties for individuals working without a required work permit or exemption certificate, or using an expired one, can range from VND 15 million to VND 25 million (approximately US$571 to US$952). Such violations may also result in expulsion from Vietnam. For organizations, penalties are typically double those for individuals. For instance, if a foreign worker's job does not match their permit, the organization could face fines of VND 10 million to VND 20 million per worker (approximately US$381 to US$761), capped at VND 150 million (US$5,710) for multiple workers. Fines for employing 1-10 unauthorized workers or those with expired permits can range from VND 60 million to VND 90 million (approximately US$2,284 to US$3,426) for organizations. Decree 283 also emphasizes notification obligations. Employers must notify competent authorities at least three working days before a foreign worker begins work, especially for exempt categories. Furthermore, employers must recover and return invalidated work permits or exemption certificates to the issuing authority within 15 days after they cease to be valid. This regulatory update underscores Vietnam's commitment to formalizing its labor market and ensuring compliance amidst its rapid economic growth. For businesses, especially foreign-invested enterprises (FIEs) that often deploy workers across various locations and roles, this necessitates a thorough review of their HR compliance procedures. Companies must ensure that their foreign employees' authorizations are valid, accurately reflect their current assignments, and that all notification and documentation requirements are met to avoid significant disruptions and penalties. Violations completed before September 10 will generally be handled under the rules then in force. However, 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. Foreign-invested enterprises (FIEs) often deploy foreign workers across several legal entities and locations. This flexibility can create compliance risks when a promotion, change in role, or transfer to another facility means that the employee’s current work no longer matches the authorization on record. A further risk is fragmented responsibility across departments. Headquarters may hold immigration documents, local HR may manage attendance, a business unit may direct travel, and an external provider may prepare applications. Employers need a single record linking each employee’s legal authorization to where and how that individual is actually working. Companies employing foreign nationals should complete a focused compliance review before September 10. Businesses need to establish that the correct authorization remains valid, reflects the employee’s actual assignment, and is supported by timely notifications and end-of-assignment procedures. Failure to do so may expose a business to fines and significant disruptions to personnel and operations. Information Source: Vietnam Briefing