Is there a penalty for submitting a labor license renewal application late?

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The labor license renewal has become a hot topic of interest to many people. Questions about regulations, procedures and the impact of this extension are increasingly attracting the attention of both managers and workers. To properly renew a work permit requires a deep understanding on the part of workers and businesses. Please accompany Long Phan to better understand this issue in the following article.

Extension of labor license

Extension of labor license

Timing of labor license extension

The timing of extending a labor license is determined based on the validity period of the labor license when it has been granted, with a period of at least 45 days before expiration.

However, this extension must meet both the timing and the following two conditions:

  • The need for employing foreign workers is approved by the competent authority.
  • A document supporting that the foreign worker will continues in employment with the employer as specified in the concerned work permit is available.

Based on the provisions of Article 16 of Decree No. 152/2020/ND-CP.

Penalties for Late Extension of Labor License

Applications

When foreign workers are employed in Vietnam and their labor license applications are extended late, it means they are working under expired licenses.

Vietnamese law stipulates the following penalties for this violation:

For employers:

  • From 30,000,000 VND to 45,000,000 VND for violations involving 1 to 10 workers.
  • From 45,000,000 VND to 60,000,000 VND for violations involving 11 to 20 workers.
  • From 60,000,000 VND to 75,000,000 VND for violations involving 21 or more workers.

For foreign workers:

  • Fine ranging from 15,000,000 VND to 25,000,000 VND.
  • Additional penalty: Expulsion from the labor market in Vietnam.

Based on the provisions of Clause 3, Clause 4, and Clause 5 of Article 32 of Decree No. 12/2022/NĐ-CP.

Procedure for Labor License Extension

Application for renewal

  • An application form for renewal of work permit made by the employer No. 11/PLI Appendix I hereto appended with Decree No. 152/2020/NĐ-CP
  • 02 color photos (4cm x 6cm size, white background, front view, bare head, no color glasses), taken within 6 months before the submission date of application.
  • Certified copy of the passport or a passport copy with confirmation from the employer, valid according to legal regulations.

The following documents must have either an original or certified copy:

  • The unexpired work permit.
  • An acceptance of demand for foreign workers
  • A fitness to work certificate issued by a competent medical authority in the foreign country or in Vietnam, valid for 12 months.
  • Any document proving that the foreign worker will continues in employment with the employer as specified in the concerned work permit. (except in cases where the foreign worker works under a labor contract).

Note: If the documents are in a foreign language, they must be legalized by the consulate and translated into Vietnamese, then notarized or certified. However, legalization by the consulate may be exempted according to international conventions where both Vietnam and the foreign country are members or based on the principle of reciprocity.

Based on the provisions of Article 17 of Decree No. 152/2020/NĐ-CP.

Application for renewal of a work permit

Application for renewal of a work permit

Procedure for Labor License Extension

  • Step 1: Submitting the application

Submit an application for renewal of a work permit to the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs which issued that work permit.

  • Step 2: Receiving the result

The Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs shall renew the work permit within 5 working days after receiving a duly completed application. If the application is rejected, a written explanation is required.

  • Step 3: Signing the labor contract.

The employer and the foreign worker must sign a written employment contract as per Vietnam’s labor law before the date on which the foreign worker is expected to work. This contract must be sent to the authorized agency that granted the license, and it can be either an original or a certified copy.

Based on the provisions of Article 18 of Decree No. 152/2020/NĐ-CP.

Authority for Resolving

The authority responsible for processing foreign workers’ labor license extension applications in Vietnam is the Ministry of Labor – Invalids and Social Affairs or the Department of Labor – Invalids and Social Affairs that issued the labor license.

Based on the provisions of Clause 2, Article 18 of Decree No. 152/2020/NĐ-CP.

Note on Labor License Extension

Employees and employers need to pay attention to the expiration dates of labor licenses to renew them in accordance with the law, specifically: The maximum validity period of a labor license is 02 years from the date of issuance.

  • In cases requiring a labor license renewal, it can only be renewed once, and the renewal period should not exceed 02 years.
  • If the renewal period is exceeded, the employee must apply for a new labor license.

Based on the provisions of Article 155 of the 2019 Labor Code.

Considerations when renewing a labor license

Considerations when renewing a labor license

Consulting services for extending work permits

With a team of experienced specialists and lawyers, Long Phan offers the following specific consulting services:

  • Advising on the conditions and procedures for renewing labor licenses for foreign workers.
  • Assisting in preparing documents and drafting necessary paperwork.
  • Providing guidance on and assisting clients in undergoing health check procedures in Vietnam.
  • Contacting and conducting labor license renewal procedures with state authorities in accordance with legal regulations.
  • Submitting labor license renewal applications to the competent state authorities.
  • Advising on and explaining any issues that may arise during the labor license renewal process.
  • Completing the procedures, receiving the renewed labor license, and delivering it to the client.
  • Providing support in resolving any other legal issues that may arise.

By clearly understanding the regulations and deadlines related to labor licenses, it helps avoid legal risks and ensures sustainable stability in labor relations. We hope this information has addressed some of your concerns. If you need further assistance, please contact Long Phan via Hotline 0906.735.386 for prompt and dedicated support. Thank you sincerely!

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Extension of labor license

Is there a penalty for submitting a labor license renewal application late?