How will businesses that do not make a labor declaration be handled?

Article overview

Labor declaration is a responsibility that employers must carry out to ensure management by competent state agencies. Enterprises that do not declare labor according to regulations may be subject to administrative sanctions. See Long Phan’s article below to understand the legal regulations to avoid unnecessary fines from occurring.

Enterprise's labor declaration process
Enterprise’s labor declaration process

The time limit for reporting employment

Pursuant to Clause 2, Article 12 of the Labor Code 2019, employers must declare the use of labor within 30 days from the date of commencement of operations and even during operations if there are any changes. Changes in the labor situation must also be periodically reported to the Department of Labor, War Invalids and Social Affairs (DOLISA) and notify the social insurance agency to update.

Procedures for reporting employment

Reporting on labor use is one of the obligations of employers specified in Article 4 of Decree 145/2020/ND-CP and a number of regulations amended by Clause 1, Article 73 of Decree 35/ 2022/ND-CP. Accordingly, employers declare their employment according to Decree No. 122/2020/ND-CP dated October 15, 2020:

First-time labor declaration: If the enterprise was established after October 15, 2020, it is not necessary to register for the first labor employment declaration because from October 15, 2020, when the enterprise wants to register its Setting up a business requires them to use the business registration application form Decree No. 122/2020/ND-CP. This new registration form includes labor declaration content. This is considered a form of coordinated document, connecting procedures for registering a business and declaring the use of labor, so businesses do not need to declare for the first time.

Periodic labor declaration: Employers must report labor changes to the Department of Labor, Invalids and Social Affairs periodically every 6 months (no later than June 5) and annually (no later than December 5) in the form :

  • Through the National Public Service Portal according to Form No. 01/PLI Appendix I issued Decree 145/2020/ND-CP amended by Decree 35/2022/ND-CP and notified the insurance agency. Social insurance at the district level where its headquarters, branches, and representative offices are located.
  • Send directly to the Department of Labor, War Invalids and Social Affairs and notify the district social insurance agency where the headquarters, branches, and representative offices are located. This form only applies in cases where the employer cannot report the situation of labor changes through the National Public Service Portal.
  • Particularly for employees working in industrial parks and economic zones, in addition to the obligation to report changes in labor to the Department of Labor, War Invalids and Social Affairs and the district-level social insurance agency where the enterprise has its headquarters, branches, and representative offices, the employer must also report to the management board of the industrial park or economic zone for monitoring.

The Department of Labor, War Invalids and Social Affairs is responsible for summarizing the situation of labor changes in case the employer sends it directly to fully update information according to Form No. 02/PLI, Appendix I issued attached to Decree Decree 145/2020/ND-CP amended by Decree 35/2022/ND-CP.

After receiving reports on the labor use situation in the area, the Department of Labor, Invalids and Social Affairs is responsible for reporting to the Ministry of Labor, Invalids and Social Affairs periodically (before June 15) and annually (before December 15) for approval. National Public Service Portal or send in paper copy according to Form No. 02/PLI Appendix I issued with Decree Decree 145/2020/ND-CP amended by Decree 35/2022/ND-CP.

Sample report on employment situation
Sample report on employment situation

Penalties when Enterprises do not declare labor

Penalty level

According to Article 8 of Decree 12/2022/ND-CP, an enterprise violates labor use declaration when it commits one of the following acts:

  • Failure to declare employment according to regulations
  • Failure to report labor changes according to regulations.

Penalties for violating regulations on labor use declaration will be handled according to the provisions in Article 6 and Article 8 of Decree 12/2022/ND-CP:

  • Fine from 2,000,000 VND to 6,000,000 VND for employers who do not report their employment according to regulations.
  • A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed on employers who fail to report labor changes according to regulations.

Note: The above fine has been doubled for violations by businesses (organizations).

Authority to sanction

Pursuant to Point b, Clause 2, Article 48 of Decree 12/2022/ND-CP stipulates:

“2. The Chairman of the District People’s Committee has the right to:

a) Caution;

b) Fine up to 37,500,000 VND for administrative violations in the field of labor and social insurance specified in Chapter II and Chapter III of this Decree, except for violations specified in Clause 3, Article 32 of this Decree;”.

The People’s Committee at the district level manages enterprises in the district. Depending on the assigned functions and tasks, the People’s Committee at the district level directs the specialized agencies under it and the People’s Committees of districts, towns to perform the task of state management of enterprises and business households in the area. Therefore, when violations occur, the Chairman of the People’s Committee at the district level takes the lead in organizing the handling.

Thus, the act of not reporting the use of labor falls within the sanctioning authority of the Chairman of the People’s Committee at the district level and the sanction for this act is smaller than the fine that the Chairman of the People’s Committee at the district level is allowed to impose. Therefore, the Chairman of the People’s Committee at the district level has the authority to impose administrative sanctions when the employer fails to report the use of labor in accordance with the provisions of the law.

Penalties for businesses that do not declare their labor
Penalties for businesses that do not declare their labor

Labor declaration consulting services when establishing a company

Labor declaration is one of the procedures that need to be carried out when a business starts operating. The act of not declaring labor by an enterprise will cause unnecessary problems for the enterprise. To solve the above problem, Long Phan will support and provide customers with the following services:

  • Consulting support to answer questions related to business records and labor declaration documents.
  • Consulting on labor declaration procedures of businesses.
  • Solution when violating the enterprise’s labor declaration procedures.

Thus, labor declaration is a mandatory procedure for businesses. To avoid administrative sanctions, your business needs to promptly grasp the regulations on labor reporting. For more detailed information, you can contact the hotline 0906735386 for the fastest response.