Failure to sign labor contracts when probation meets requirements, businesses are fined up to 10 million VND

Legal Consulting Department of Lao Dong Newspaper answers:

Clause 2, Article 16, Decree 283/2026/ND-CP stipulating penalties for administrative violations in the fields of labor, social insurance, and Vietnamese workers working abroad under contracts (effective from September 10, 2026) stipulates as follows:

2. A fine of between 2 million VND and 5 million VND shall be imposed on employers for one of the following acts:

a) Requiring employees to take a probation period more than 1 time for one job;

b) Trying work beyond the agreed time or exceeding the conditions specified in Article 25 of the Labor Code;

c) Paying probationary salary lower than agreed or lower than 85% of the salary of that job;

d) Not concluding a labor contract when a probationary period meets the requirements for cases where the two parties have a probationary contract.

Point b, Clause 3, Article 16 of Decree 283/2026/ND-CP stipulates remedial measures as follows:

b) Forcing the employer to conclude a labor contract with the employee when there is a violation of the provisions of Point d, Clause 2 of this Article.

Clause 1, Article 7 of Decree No. 283/2026/ND-CP stipulates the level of fines and principles of application for repeated administrative violations as follows:

1. The penalty level stipulated for administrative violations specified in Chapter II, Chapter III and Chapter IV of this Decree is the penalty level for individuals; except for cases specified in: Article 8; Article 9; Clause 3, Article 10; Clauses 3, 4, 5, 6, Article 19; Clauses 2, 4, Article 36; Clause 1, Article 37; Clauses 1, 5, 6, 7, 8, Article 38; Clause 3, Article 42; Clauses 6, 11, Article 48; Article 49; Clauses 1, 2, 3, 4, 5, 6, 7, 8, Article 50; Clauses 1, 2, 3, 4, 5, 6, Article 52; Clause 4, Article 53 of this Decree is the penalty level for organizations. The penalty level for organizations is 2 times the penalty level for individuals.

Thus, from September 10, 2026, businesses that do not sign labor contracts when probationary workers meet the requirements will be fined up to 10 million VND.