Fines for unilaterally terminating labor contracts with trade union officials

Legal Consulting Department of Lao Dong Newspaper answers:

Clause 2, Article 39, 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 10 million VND and 20 million VND shall be imposed on employers for one of the following acts:

a) Failure to agree in writing with the leadership of the employee representative organization at the grassroots level when unilaterally terminating the labor contract, transferring to another job or disciplinarily dismissing employees who are members of the leadership of the employee representative organization at the grassroots level but have not reached the level of criminal prosecution, unless the two parties cannot agree;

b) Not agreeing in writing with the directly superior trade union when unilaterally terminating labor contracts, working contracts, dismissing, forcing resignation, transferring to other jobs for employees who are non-specialized trade union officials but not serious enough to be prosecuted for criminal liability, unless the two parties cannot agree;

c) Deciding unilaterally to terminate labor contracts, working contracts, dismiss, force resignation, transfer to other jobs for employees who are members of the leadership board of the employee representative organization at the grassroots level, non-specialized trade union officials who violate the time limit for prior notice to the specialized labor agency under the Provincial People's Committee according to the provisions of Clause 3, Article 177 of the Labor Code, Clause 2, Article 28 of the Trade Union Law but not to the extent of criminal prosecution;

d) Not renewing labor contracts, working contracts that have been concluded until the end of the term for employees who are members of the leadership of the employee representative organization at the grassroots level or non-specialized trade union officials who are in the term but whose labor contracts or working contracts have expired.

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 arbitrarily terminate labor contracts with trade union officials will be fined up to 40 million VND.