Vietnam Mandates Notification for Hiring Domestic Workers, Imposing Fines for Non-Compliance

Vietnam is strengthening regulations on hiring domestic workers, mandating notification to local commune-level People's Committees (UBND xã) and imposing fines for non-compliance. This measure aims to protect the rights of domestic workers and promote their participation in social insurance schemes. According to reader inquiries, from September 10 onwards, employers will be required to notify the relevant UBND xã when hiring domestic workers. Failure to comply can result in fines ranging from VND 1 million to 3 million (approximately USD 40 to 120). This regulation is stipulated in Decree 12/2022/NĐ-CP, effective from December 31, 2022, and will be continued under Decree 283/2026/NĐ-CP, effective from September 10, 2026. Employers must submit a notification to the UBND xã using the prescribed form (Form No. 02/PLV, Appendix V of Decree 145/2020/NĐ-CP) within 10 days of signing the labor contract. Additionally, employers are obligated to pay domestic workers, concurrently with salary payments, an amount equivalent to the employer's mandatory social insurance and health insurance contributions. This facilitates the domestic workers' proactive enrollment in these insurance programs. It is important to note that this regulation applies to individuals who regularly perform domestic tasks within a household or multiple households. This includes roles such as housekeeping, childcare, elder care, driving, and gardening, provided they are not related to commercial activities. Services like one-off house cleaning, hourly cleaning, or occasional cleaning services are not considered "domestic work" under this definition, and thus do not require notification to the UBND xã. This regulatory update is seen as a step towards enhancing transparency in Vietnam's labor market and improving the working conditions and social security for domestic workers, who are often in a vulnerable position. Within Vietnam's one-party system, maintaining social order and the stability of citizens' lives are priorities, leading to the ongoing development of labor protection laws. Concurrently, Vietnam's economy, closely linked with China, is susceptible to global supply chain fluctuations and domestic labor market dynamics. This new regulation can be interpreted as an effort to regulate the domestic labor market more effectively.