Labor Compliance Checklist for Labor Inspections (FDI Companies)

For an FDI company, a labor compliance checklist for a Vietnam FDI labor inspection is not a glance at a few contracts — it is a full review of the labor management book, salary scales, overtime, social insurance dossiers and the work permit of every foreign expert. Many companies only start assembling dossiers when the inspection notice arrives — and that is precisely when compliance gaps are exposed. The labor compliance checklist below helps HR and management check each item proactively and fix issues before the inspection team walks into the factory.

1. Who should use this checklist and how
2. Detailed checklist
3. Common mistakes when self-auditing
4. After completing the checklist
5. Frequently asked questions

1. Who should use this checklist and how

Who: HR directors, HR managers, in-house counsel and leadership of foreign-invested enterprises operating in Vietnam.
When: Quarterly or annual self-audits; immediately upon receiving an inspection notice; before scaling recruitment or onboarding additional foreign workers.
How to mark: ☐ not done · ☑ done · ⚠ needs counsel review.
Consequences of gaps: Administrative fines under Decree 283/2026/ND-CP (effective 10 September 2026) running into hundreds of millions of dong; recovery of social insurance arrears and trade union fees plus 0.03% per day; foreign workers without valid permits may be expelled, directly disrupting operations.

2. Detailed checklist

Item 1: Labor management book and labor-use reporting ☐

Do: Maintain a labor management book recording basic information on every employee; file the labor-use declaration and periodic reports on labor changes with the provincial labor authority.
Why: Under Article 12 of the Labor Code 2019, employers must keep a labor management book at the workplace and present it when requested by competent state authorities. Inspectors typically open by reconciling the book against the actual headcount at the plant — a mismatch is the first signal triggering deeper checks on contracts and social insurance.
How: Assign HR to maintain the book (paper or electronic), updated with every personnel change; keep receipts confirming periodic reports filed with the provincial Department of Home Affairs.
Note: FDI companies with multiple workplaces need a single control point for the book to avoid each branch reporting different figures.

Item 2: Written labor contracts for the entire workforce ☐

Do: Verify that 100% of employees working one month or more have written labor contracts containing all principal contents under Article 21 of the Labor Code 2019 (job, workplace, working time, salary, social insurance, etc.).
Why: Missing written contracts is the most common violation at large FDI enterprises, especially for seasonal workers and verbally renewed contracts. Under Clause 1, Article 15 of Decree 283/2026/ND-CP, fines scale with the number of affected workers, from VND 2 to 25 million for individuals — and companies pay double under Article 7 — plus a remedial order to conclude written contracts.
How: Reconcile the actual headcount against the contract archive; re-check cases where contracts expired but the employee kept working — a favourite inspection question.
Note: For bilingual Vietnamese–English/Chinese contracts, agree which version prevails; company-wide templates must be re-reviewed by counsel after each legal change.

Item 3: Public salary scales and payslips ☐

Do: Build salary scales; publish them at the workplace before implementation; provide each employee a payslip every pay period.
Why: Decree 283/2026/ND-CP penalizes failure to publish salary scales, failure to issue payslips, late payment or payment below the regional minimum wage. Inspectors typically demand 6–12 months of payslips to reconcile against social insurance contributions — a gap between actual pay and the SI contribution base is one of the most heavily recovered violations.
How: Keep complete payroll records and payslips signed or electronically confirmed by employees; publish the bonus policy; periodically reconcile actual pay with the SI contribution base.
Note: FDI companies paying in foreign currency must state the applied exchange rate on payslips to avoid disputes during reconciliation.

Item 4: Regional minimum wage and on-time payment ☐

Do: Check that every position's starting salary is not below the applicable regional minimum wage; pay in full and on time as agreed in the contract.
Why: Paying below the regional minimum wage is a serious violation, fined VND 20–75 million under Decree 283/2026/ND-CP depending on the number of affected workers. FDI companies with factories in several provinces face a different minimum wage in each locality — one wrong locality means a whole group of workers affected.
How: Update regional minimum wages under the latest Government instrument at the start of each year; re-check all salary grades before applying them.
Note: Do not count unstable allowances to "reach" the minimum wage — inspectors assess the contractual salary.

Item 5: Working time and overtime within limits, with consent ☐

Do: Keep normal working time within 8 hours/day and 48 hours/week; organize overtime only with employee consent and within 40 hours/month and 200 hours/year (300 hours/year in special cases under Article 107 of the Labor Code 2019).
Why: Overtime is a hot spot at FDI factories. Under Clause 3, Article 24 of Decree 283/2026/ND-CP, mobilizing overtime without consent is fined VND 20–25 million (doubled for companies); exceeding overtime caps is fined by headcount, up to VND 60–75 million for individuals.
How: Keep records of employee consent to overtime (registrations, confirmations); track each person's total overtime accurately through attendance sheets; calculate overtime pay correctly under Article 98 of the Labor Code 2019.
Note: Paying overtime in full does not cure unlawfully organized overtime — inspectors check three layers: the mobilization basis, consent, and actual attendance records.

Item 6: Full annual leave and public holidays ☐

Do: Grant employees with 12 months of service 12 working days of paid annual leave, increasing with seniority (Articles 113, 114 of the Labor Code 2019); arrange public holidays as prescribed.
Why: FDI companies on foreign order schedules often run shifts overlapping holidays; failing to pay holiday work correctly or to arrange compensatory leave is an inspection-detectable working-time violation visible on attendance sheets.
How: Schedule annual leave per employee; keep holiday arrangement decisions and holiday pay calculations; reconcile leave taken against entitlement at year-end.
Note: "Buying back" leave days in cash outside the statutory framework may be treated as a rest-time violation.

Item 7: Written internal labor regulations, duly registered ☐

Do: Employers with 10 or more employees must have written internal labor regulations; within 10 days of issuance, file the registration dossier with the provincial labor authority where the business is registered (Articles 118, 119 of the Labor Code 2019).
Why: Having no written regulations when employing over 10 workers is fined VND 5–10 million under Article 25 of Decree 283/2026/ND-CP (doubled for companies). More importantly, every disciplinary decision must rest on registered regulations — without valid regulations, the company can hardly discipline lawfully.
How: Review regulation contents for legality (no monetary fines or wage deductions as discipline); consult the employee representative organization before issuance; keep the registration confirmation.
Note: After the 2025 administrative-unit rearrangement, the receiving authority is the provincial Department of Home Affairs — confirm the contact point in the company's locality (see uncertain point 2).

Item 8: Collective labor agreement ☐

Do: Check that the collective labor agreement is still effective, lawful in content, and that one copy was sent to the provincial labor authority within 10 days of signing (Articles 76, 77 of the Labor Code 2019).
Why: Many FDI companies sign agreements years ago and let them lapse while still applying favorable clauses — in a dispute, those clauses are hard to enforce. Inspectors also check periodic negotiation and signing.
How: Diary the agreement's expiry in the HR calendar; restart collective bargaining 3 months before expiry.
Note: Only clauses more favorable to employees than the law are recognized; clauses below statutory standards are void.

Item 9: Work permits and legal status of foreign employees ☐

Do: List all foreign nationals working: who needs a work permit, who is exempt (holding a confirmation of exemption); check each permit's validity and whether the recorded job matches the actual job; recover permits of departed employees as required.
Why: This is the most closely scrutinized item at FDI companies. Under Clause 5, Article 13 of Decree 283/2026/ND-CP, employing foreign workers without a work permit, without an exemption confirmation, or with expired permits is fined VND 30–75 million by headcount (individual-level fine; an enterprise as an organization faces double under Article 7); the foreign worker is fined VND 15–25 million and may be expelled. The current framework is Decree 219/2025/ND-CP (effective 7 August 2025), replacing Decree 152/2020/ND-CP — companies still citing the old decree are out of date.
How: Build a permit-expiry tracker with 45-day advance alerts; re-check all exemption dossiers against the new exemption list in Decree 219/2025/ND-CP; keep demand-approval decisions.
Note: A common trap: the permit is still valid but the worker has moved to a different position or workplace than recorded — still punishable (see the scenario of an expired-permit foreign expert in this cluster).

Item 10: Full and timely social, health and unemployment insurance ☐

Do: Reconcile the list of employees subject to compulsory social insurance (expanded under Clause 1, Article 2 of the 2024 Law on Social Insurance — including part-time workers and unpaid enterprise managers) against registered participants; pay fully and on time each month on the prescribed contribution base (Article 31 of the 2024 Law on Social Insurance).
Why: Under Decree 283/2026/ND-CP: failure to register or incomplete registration 60 days past the deadline is fined VND 5–75 million by headcount; late payment is fined 12%–15% of the late amount (capped at VND 75 million); evasion is fined 18%–20% (capped at VND 75 million) — companies pay double under Article 7. Beyond fines, full arrears must be repaid plus 0.03% per day on the late/evaded amount. SI evasion may also trigger criminal liability under Article 216 of the Penal Code 2015.
How: Monthly reconciliation among payroll, SI participation lists and personal income tax filings — the three figures must match; handle late increase/decrease reports immediately; keep monthly SI payment receipts.
Note: Joint labor–SI inspections are common; personal income tax data is the cross-check many FDI companies overlook.

Item 11: 2% trade union fee ☐

Do: Contribute a trade union fee equal to 2% of the wage fund used as the compulsory SI contribution base, paid in the same period as monthly SI.
Why: Under Article 29 of the 2024 Trade Union Law (effective 1 July 2025), every enterprise pays the 2% union fee regardless of whether a grassroots union exists — the most common misunderstanding among newly arrived FDI companies. Decree 105/2026/ND-CP (effective 16 May 2026) has replaced Decree 191/2013/ND-CP to detail union finance, clarifying payment deadlines and exemption, reduction and suspension mechanisms.
How: Calculate 2% on the correct SI contribution wage fund (not the total actual payroll where they differ); keep monthly payment vouchers; book it into production and business costs for the period.
Note: Late union fee payment also accrues repayment obligations and may be penalized — do not let this "small" 2% become a minus point in the inspection record.

Item 12: Occupational safety, hygiene and periodic health checks ☐

Do: Organize periodic health checks for workers (at least every 6 months for those in heavy, hazardous or dangerous jobs, disabled workers, minors and elderly workers; female workers receive a gynecological examination during periodic checkups); provide full personal protective equipment; inspect machinery and equipment subject to strict safety requirements; build an annual occupational safety and hygiene plan.
Why: Failure to organize periodic health checks, provide protective equipment or inspect strictly-regulated equipment can each be fined up to VND 75 million (individual-level fine; an enterprise as an organization faces double under Article 7) under Decree 283/2026/ND-CP. For FDI factories, this is also a condition for maintaining international customers' certifications.
How: Keep each worker's health check dossier; valid equipment inspection reports; PPE issuance logs with recipients' signatures.
Note: Inspectors check the shop floor in person: randomly asking workers about PPE and reconciling with issuance logs.

Item 13: Severance allowance on contract termination ☐

Do: Review terminations in the last 12 months: was severance allowance paid to the right subjects and calculated correctly?
Why: Under Article 46 of the Labor Code 2019, employees working regularly for 12 months or more whose contracts end in statutory cases receive severance of half a month's salary per working year — computed on actual working time minus periods already covered by unemployment insurance. Non-payment or underpayment is fined VND 1–20 million under Decree 283/2026/ND-CP, and employees may sue for their rights.
How: Prepare a severance calculation sheet for each departure, kept with the termination decision and payment vouchers; pay special attention to departing foreign workers — they are also entitled where eligible.
Note: The calculation salary is the average of the 6 consecutive months under the labor contract before termination, not the final month's salary.

Item 14: "Inspection-ready" dossier set and inspection reception procedure ☐

Do: Package a standing dossier set: establishment decision, investment/business registration certificate, all dossiers from Items 1–13, records of prior inspections and remediation reports; designate the inspection liaison and internal rules on document provision.
Why: Labor inspections may be conducted unannounced where there are signs of violations or complaints and denunciations — under the Inspection Law 2025 (84/2025/QH15, effective 1 July 2025, replacing the 2022 Inspection Law). A company with a ready dossier set shortens working time with the inspection team, avoids a "non-cooperative" assessment, and limits scope creep.
How: Designate one HR lead and one legal officer to receive the team; every document handed over is recorded in a handover minutes, with copies kept; do not provide documents outside the inspection decision's scope without legal advice.
Note: Never alter or falsify dossiers while the inspection team is working — this can attract heavy penalties and criminal consideration.

3. Common mistakes when self-auditing

Citing expired instruments. Many FDI companies still keep Decree 12/2022/ND-CP (penalties), Decree 152/2020/ND-CP (foreign workers) and Decree 191/2013/ND-CP (union finance) in internal procedures — all three have been replaced by Decree 283/2026/ND-CP, Decree 219/2025/ND-CP and Decree 105/2026/ND-CP respectively. Dossiers prepared under old instruments misfire at the very first legal-basis check with inspectors. Fix: review and update the cited-instrument list in internal procedures every 6 months.
Actual pay higher than the SI contribution base. Inspectors reconcile payslips, personal income tax filings and SI dossiers — three mismatched figures signal evasion. Fix: unify one salary level as the base across all three systems, or document in writing each lawful difference.
Expired work permit while the expert keeps working. Companies remember visa expiry but forget work permit expiry. Fix: merge visa, work permit and labor contract tracking into one alert table, 45 days ahead.
No union fee payment because "there is no grassroots union yet". The costliest misunderstanding of newly established FDI companies. Fix: contribute 2% from the first payroll period with an SI contribution wage fund.
Internal regulations issued but never registered. Regulations posted at the factory but the registration dossier never filed — all subsequent disciplinary decisions rest on fragile legal ground. Fix: complete registration within 10 days of issuance and keep the confirmation.

4. After completing the checklist

When all 14 items are marked ☑, the company has essentially completed the labor compliance checklist and stands on solid ground for any labor inspection. But a checklist does not replace in-depth legal review: special situations such as restructuring, mass layoffs, collective agreement disputes or handling violating foreign workers each need counsel's separate assessment before an inspection.

If any item is marked ⚠, or if the application of the new rules (especially Decree 283/2026/ND-CP and Decree 219/2025/ND-CP) is uncertain, arrange a compliance review with a labor lawyer before the inspection team arrives — one review session always costs far less than one violation record.

Contact FLAT Law Firm for a labor compliance review for your FDI company: hotline 0988424851.

5. Frequently asked questions

Does a labor inspection team notify an FDI company in advance? Not always. Labor inspectors may arrive unannounced where there are signs of violations or employee complaints and denunciations. FDI companies should maintain compliance dossiers on an ongoing basis rather than assembling them only when a notice arrives.

What dossiers must an FDI company prepare for a labor inspection? The labor management book, all labor contracts, salary scales, attendance and payroll records, registered internal labor regulations, work permits of foreign employees, social/health/unemployment insurance dossiers, and receipts for the 2% trade union fee.

What is the fine for using a foreign expert without a work permit? Under Clause 5, Article 13 of Decree 283/2026/ND-CP (effective 10 September 2026), the employer faces VND 30–75 million depending on the number of violating foreign workers (individual-level fine; an enterprise as an organization faces double under Article 7); the foreign worker may be expelled from Vietnam.

Must an FDI company without a grassroots union still pay the trade union fee? Yes. Under Article 29 of the 2024 Trade Union Law, enterprises pay a trade union fee equal to 2% of the wage fund used as the compulsory social insurance contribution base, regardless of whether a grassroots union has been established.

How are late compulsory social insurance payments penalized under the new rules? Under Clause 3, Article 43 of Decree 283/2026/ND-CP (effective 10 September 2026), late payment of compulsory social insurance is fined 12%–15% of the total late amount, capped at VND 75 million, plus full repayment and an additional 0.03% per day on the late amount.

Language versions

References

Labor Code 2019 (45/2019/QH14).
Law on Social Insurance 2024 (41/2024/QH15).
Decree 283/2026/ND-CP on administrative penalties in labor and social insurance.
Decree 219/2025/ND-CP on foreign workers in Vietnam.
Trade Union Law 2024; Decree 105/2026/ND-CP guiding the Trade Union Law on union finance.
Inspection Law 2025 (84/2025/QH15); Law on Occupational Safety and Hygiene 2015 (84/2015/QH13).