Internal accounting

How to Apply for a Labor Declaration in Vietnam

When a newly established company has not yet completed its labor declaration, how should it proceed? Is a new declaration required? Read the following guidance for a clear answer.

WHAT ARE THE LEGAL GROUNDS FOR THIS PROCEDURE?

Circular No. 23/2014/TT-BLDTBXH issued by the Ministry of Labor, War Invalids and Social Affairs.

Government Decree No. 95/2013/ND-CP on administrative sanctions in the field of labor, social insurance, and the placement of Vietnamese workers abroad.

Decree No. 88/2015/ND-CP amending and supplementing Decree No. 95/2013/ND-CP.

WHAT IS THE PROCEDURE FOR A LABOR DECLARATION?

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Step 1: The company representative who handles administrative procedures with the relevant agencies must prepare a complete and legally valid dossier (together with the company’s letter of introduction and the representative’s ID card).

  1. Copy of the business registration certificate (01 copy)
  2. Employer’s labor declaration form. You may complete the information and print it on A3 paper, or obtain a pre-printed A3 form from your local labor authority and fill it out by hand. (03 copies)

Once the dossier is complete, submit it to the District Department of Labor, War Invalids and Social Affairs. The receiving officer will check the dossier; if it is complete and compliant, they will issue an appointment slip stating the date for collecting the result, with the company code clearly noted. If the dossier is incomplete, the officer will guide the company representative on how to supplement it.

On the appointed date, return to the Department of Labor, War Invalids and Social Affairs to collect the result: you will receive 02 employer labor declaration forms signed and certified by the Department.

Step 2: The company must then submit an application for registration of its salary scale and payroll system to the Department of Labor, War Invalids and Social Affairs. The application consists of 2 sets, including the following documents:

  • Official request letter from the company
  • The salary scale and payroll system established by the company
  • Internal labor regulations registered with the district-level authority (required if the company has 10 or more employees)
  • Confirmation that the workplace does not yet meet the conditions to establish a trade union (if applicable)
  • The company’s salary system structure
  • Details of the standards and conditions applicable to each position in the salary scale and payroll submitted by the company

After the company submits the full set of documents to the District Department of Labor, War Invalids and Social Affairs, the receiving officer will review the dossier and issue an appointment slip. If the dossier does not comply with regulations and cannot be processed, the officer will state the issue clearly and return it. On the appointment date, the company will receive 01 set of the salary scale and payroll system, signed and certified by the District Department of Labor, War Invalids and Social Affairs where the application was submitted.

WHAT ARE THE PENALTIES FOR FAILING TO FILE A LABOR DECLARATION?

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Pursuant to Clause 1, Article 25 of Decree No. 95/2013/ND-CP on administrative sanctions in the field of labor and the placement of Vietnamese workers abroad, the penalties are as follows:

1. A warning or a fine of from VND 500,000 to VND 1,000,000 shall be imposed on an employer who commits any of the following acts:

a) Failure to prepare and register a labor management book or payroll book, or failure to present them upon request by competent authorities for inspection;

b) Failure to declare the use of labor within 30 days from the start of operations, or failure to periodically report changes in the workforce to the local state labor authority where the company is located;

c) Violating regulations on the order, procedures, and dossier requirements for labor recruitment as prescribed by law.

If you still have questions or need further legal support, please see more advice here for answers.