Failure to renew labor contract for trade union officials will be fined up to 40 million VND
Reader hongdaoxxx@gmail. com asks: What penalties are imposed on employers who do not extend labor contracts for trade union officials until the end of their term?
Legal Consulting Department of Lao Dong Newspaper answers:
Clause 2, Article 39 of Decree 283/2026/ND-CP stipulates penalties for administrative violations in the fields of labor, social insurance, and Vietnamese workers going to work abroad under contracts (effective from September 10, 2026), stipulating fines from 10 million VND to 20 million VND for employers with one of the following acts:
d) Not renewing labor contracts and employment 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 and employment contracts have expired.
Clause 1, Article 7 of Decree 283/2026/ND-CP stipulates the level of fines and principles of application for repeated administrative violations as follows: The level of fines specified for administrative violations specified in Chapter II, Chapter III and Chapter IV of this Decree is the level of fines 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 level of fines for organizations. The level of fines for organizations is equal to 2 times the level of fines for individuals.
Thus, employers who do not extend labor contracts or working contracts until the end of their 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 their term but whose labor contracts have expired will be fined from 10 million VND to 20 million VND for individuals, or from 20 million VND to 40 million VND for organizations.
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