Notes for Businesses When Handling Labor Discipline

Handling labor discipline is a necessary and important measure to ensure the optimal operation of a business. The issue of labor discipline handling is always of interest to many businesses as well as individuals involved in labor relations. The following article by Long Phan will provide customers with the regulations on the procedures, forms of handling labor discipline, and especially the notes for businesses when disciplining employees.

Notes on labor discipline handling

Forms of Labor Discipline

According to the Labor Code 2019, the following forms of labor discipline are applied:

• Reprimand;
• Extension of the salary increase period for no more than 6 months;
• Demotion;
• Dismissal;

Thus, depending on the level and nature of the seriousness of the act, different forms of handling will be applied.

Principles of Handling Labor Discipline

The principles of handling labor discipline are specified in Article 122 of the Labor Code 2019, specifically, labor discipline handling is regulated as follows:

• The employer must demonstrate the culpability of the worker.
• There must be the participation of the workers’ representative organization at the grassroots level of which the worker who is being disciplined is a member.
• The worker must be physically present and has the right to defend themselves or to have a lawyer or workers’ representative organization assist in their defense. In cases where the worker is less than 15 years of age, the worker’s legal representative must be present.
• Any settlement of labor disciplinary regulations must be recorded in writing.
• Multiple forms of labor discipline shall not be applied to a single violation of labor discipline.
• ​When a worker simultaneously commits multiple violations of labor disciplinary regulations, they will only be subject to the highest form of disciplinary measure corresponding to the most serious violation.

Prohibited Acts in Handling Labor Discipline

The handling of labor discipline must comply with legal regulations, including three prohibited acts in the process of handling labor discipline as specified in Article 127 of the Labor Code 2019:

• Infringing on the health, honor, life, reputation, and dignity of the employee.
• Imposing fines or wage cuts in place of handling labor discipline.
• Disciplining employees for violations not specified in the labor regulations, not agreed upon in the labor contract, or not regulated by labor laws.

Statute of Limitations for Handling Labor Discipline

The statute of limitations for handling labor discipline is specified in Article 123 of the Labor Code 2019 as follows:

• The statute of limitations for handling labor discipline is 6 months from the date the violation occurs; in cases where the violation directly involves finance, property, disclosure of technological secrets, or business secrets of the enterprise, the statute of limitations is 12 months.
• In cases where the time limit specified in Clause 4, Article 122 of the Labor Code 2019 has expired, if the statute of limitations has expired or there are fewer than 60 days remaining, the statute of limitations for handling labor discipline may be extended but not more than 60 days from the expiration date.

Thus, within the specified time limit, the employer must issue a decision on handling labor discipline. If the time limit expires, the employee with the violation will not be disciplined.

Procedure for Handling Labor Discipline

Handling labor discipline must comply with the regulations in Article 70 of Decree 145/2020/ND-CP. The specific steps are as follows:

Step 1: Confirm the Violation of Labor Discipline

• If an employee is found to have violated labor discipline at the time of the violation: The enterprise shall make a record of the violation and notify the employee representative organization at the establishment where the employee is a member and the legal representative of the employee under 15 years old.
• If the enterprise discovers the violation after the time of occurrence: The enterprise shall collect evidence to prove the employee’s fault.

Step 2: Organize a Meeting to Handle Labor Discipline

• Notification of the Disciplinary Meeting:
  • The enterprise must notify the employee, the employee representative organization at the establishment where the employee is being disciplined, the lawyer or the employee representative organization defending the employee (if any), and the legal representative (if the employee is under 15 years old) at least 5 working days before the disciplinary meeting. The notification should include the content, time, and location of the disciplinary meeting; the name of the person being disciplined; and the violation being addressed.
• Confirmation of Attendance at the Disciplinary Meeting:
  • Upon receiving the notification, all participants must confirm their attendance with the enterprise.
  • If any participant cannot attend the meeting at the notified time and place, the employee and the enterprise shall agree on a new time and place. If no agreement is reached, the employer will decide the time and place.
• Conducting the Disciplinary Meeting:
  • The enterprise conducts the disciplinary meeting at the notified time and place. If any participant does not confirm attendance or is absent, the enterprise will still proceed with the meeting.
  • The content of the disciplinary meeting must be recorded in writing, reviewed before the end of the meeting, and signed by the attendees. If someone refuses to sign, the recorder must state their name and reason (if any) in the minutes.

Step 3: Issue the Disciplinary Decision

• Within the statute of limitations for handling labor discipline, the legal representative of the enterprise, an authorized person as per legal regulations, or a person specified in the internal labor regulations must issue the disciplinary decision and send it to the participants.

Disciplinary procedures

Handling Administrative Violations for Businesses Violating Labor Discipline Regulations

Businesses that violate the above legal procedural principles may face administrative penalties and corrective measures as specified in Decree 28/2020/ND-CP.

• Fines from 10,000,000 to 20,000,000 VNDif a business fails to reach a written agreement with the leadership of the employee representative organization at the establishment when unilaterally terminating the labor contract, changing the employee’s job, or disciplining an employee who is a member of the employee representative organization at the establishment, unless the parties cannot reach an agreement.
• Fines from 20,000,000 to 40,000,000 VNDfor a business in the following cases:
  • Violating the health, honor, life, reputation, or dignity of the employee when handling labor discipline but not reaching the level of criminal prosecution;
  • Using monetary fines or wage cuts instead of proper labor discipline;
  • Disciplining employees for violations not specified in the internal labor regulations, not agreed upon in the labor contract, or not regulated by labor laws;
  • Applying multiple forms of labor discipline to a single violation;
  • Disciplining employees who are in the following situations: on sick leave; on medical leave; on leave with employer’s approval; under detention; in custody; awaiting results from the competent authority’s investigation, verification, and conclusion of the violation specified in Clauses 1 and 2, Article 125 of the Labor Code.

Consulting Services for Labor Discipline Issues

Long Phan’s labor consulting services can assist customers with issues related to the labor discipline process, including:

• Advising on conditions for handling labor discipline;
• Advising on forms of labor discipline;
• Advising on principles of handling labor discipline;
• Advising on participants in disciplinary meetings;
• Advising on drafting disciplinary documentation.

Consulting on labor discipline

Handling labor discipline helps businesses maintain a stable and orderly environment. The article on Long Phan has provided essential information related to handling labor discipline. For more detailed information or if you have any questions regarding this matter, please contact us at the hotline: 0906.735.386 for assistance. Thank you!