You have resigned, handed everything over, yet the company still holds on to your social insurance book — some even use it as leverage to demand compensation or extra handover work. This is a very common situation, and a clear violation of the law. Current labour and social insurance legislation imposes specific obligations on employers upon termination, backed by administrative fines. This article sets out employee rights and a 3-step roadmap to lawfully reclaim your social insurance book.
Your rights: the company owes you two duties when you leave
Under clause 1 Article 48 of the 2019 Labour Code, upon termination of the labour contract the parties must fully settle all amounts relating to each party rights within 14 working days; in special cases this may be extended but not beyond 30 days. In addition, point a clause 3 Article 48 obliges the employer to complete the procedures for certifying social insurance and unemployment insurance contribution periods and return the originals of any documents the employer has kept belonging to the employee.
In other words, when you resign the company owes you two things: finalizing the book and returning the book. Missing either one is a violation.
Finalizing vs returning — the company must do both
Many employees confuse these two concepts, and quite a few companies exploit the confusion:
- Finalizing the book (chốt sổ) is the procedure for certifying your contribution period with the social insurance agency — the company must work with the agency to “close” your contribution record as of your leaving date. It is an administrative procedure between the company and the agency, but the duty sits with the company.
- Returning the book (trả sổ) means the company hands the physical social insurance book back to you — after finalization, or where the book is being kept by the company. The book records your own participation history; the company has no right to keep it once the employment relationship ends.
In practice there are three scenarios: (1) the book is finalized but not returned; (2) the book is not finalized so there is nothing to return yet; (3) neither finalized nor returned. In every scenario the company duty covers both, and the employee may demand both.
Penalties: how much for withholding the social insurance book?
From 10/9/2026, Decree 283/2026/ND-CP (replacing Decree 12/2022/ND-CP) provides the following sanctions:
- Failing to return the paper social insurance book upon the employee request: a fine of 2–4 million VND per affected employee, capped at 75 million VND (point c clause 3 Article 48 of Decree 283/2026/ND-CP) — the direct sanction for “holding the book hostage”.
- Failing to complete contribution-period certification or to return kept documents: fined per number of affected employees, plus a remedial order to complete the procedures and return the documents and books — meaning that beyond the fine, the company must still perform its duties properly.
On personal documents generally, the law is even stricter: keeping the originals of an employee identity papers, diplomas or certificates when concluding or performing a labour contract is fined 20–25 million VND for individuals; because a company is an organization (fines doubled under Article 7), the fine is 40–50 million VND, together with an order to return the kept originals (point a clause 2 and point d clause 3 Article 15 of Decree 283/2026/ND-CP). This rule mainly targets the contract conclusion and performance phase, but it shows the law consistent stance: employers may not keep employees personal documents as leverage.
A note on reading fine schedules: figures in sanctioning decrees are usually stated at the individual rate; where the violator is a company (an organization), the fine is doubled under Article 7 of Decree 283/2026/ND-CP. Always check this when cross-referencing.
The 3-step roadmap to reclaim your book
Step 1 — Demand in writing with a clear deadline. Send a written demand (acknowledged email or signed paper letter) requiring the company to complete the contribution-period certification and return the social insurance book, setting a specific deadline — for example within 14 working days per the timeframe in clause 1 Article 48 of the 2019 Labour Code. This document is key evidence for the next steps.
Step 2 — Complain or denounce to the competent labour inspectorate. If the company fails to comply after the deadline, the employee may complain about or denounce the violation to the competent labour inspectorate for handling. Use the generic phrase “competent labour inspectorate” — after the administrative restructuring, specific agency names may have changed, so old agency names should not be cited in current filings.
Step 3 — Sue in a labour dispute. This is a major advantage for employees: under clause 1 Article 188 of the 2019 Labour Code, individual labour disputes concerning social insurance are among the disputes that may be filed directly with the court without mandatory conciliation by a labour conciliator. Employees need not spend time on the compulsory conciliation step required for many other labour disputes.
Two common traps — and the correct view
Trap 1: “We keep the book to offset debts” — the company demands compensation so it holds the book as security. This argument is legally wrong. The company duty to finalize and return the book and the employee duty to compensate or hand over work are two independent obligations. The company may not use the social insurance book as leverage to extract compensation. If damages are genuinely owed, the company must pursue them through the proper damages procedure — not by “detaining” the employee book.
Trap 2: “The company owes social insurance contributions, so the book cannot be finalized.” This is more complex: the company is in arrears on contributions so the agency has not certified the record. That is the company breach of its contribution duty, not the employee fault — and the employee should not bear the consequences. However, the right handling depends on the arrears status, the company ability to remedy, and the agency rules at the time. In this situation employees should consult a lawyer for the specific case rather than mechanically applying the general roadmap, to choose the most effective route (complaint, denunciation, lawsuit, or a combination).
Conclusion
A company withholding the social insurance book when an employee resigns is breaking the law: the company must both finalize the book (certify the contribution period with the agency) and return the book (hand it to the employee) within the statutory timeframe. Administrative sanctions since 10/9/2026 are clear — per-head fines capped at 75 million VND, plus remedial orders to complete the procedures and return the book. Employees should follow the 3-step roadmap: written demand, complaint to the competent labour inspectorate, and direct court action without conciliation.
Legal sources
- Labour Code 45/2019/QH14 (cited per consolidated document 18/VBHN-VPQH 2026): clause 1 and point a clause 3 Article 48 (duties upon labour contract termination), clause 1 Article 188 (social insurance disputes may be sued directly).
- Law on Social Insurance 41/2024/QH15 (effective 1/7/2025, replacing Law 58/2014).
- Decree 283/2026/ND-CP (effective 10/9/2026, replacing Decree 12/2022/ND-CP): clause 1 Article 7 (organizational fine is twice the individual fine), point a clause 2 and point d clause 3 Article 15 (keeping identity papers), point c clause 3 Article 48 (failure to return the paper social insurance book).
Resigned but your former employer is withholding your social insurance book? Reach us via the Contact page of FLAT Law Firm for guidance on the roadmap to reclaim your book and protect your social insurance rights.
The legal content of this article is reviewed by FLAT’s AI Legal Council and submitted to the owner for approval; it is not an opinion of a licensed lawyer and does not replace legal advice for specific cases.
For reference only, not legal advice.