A company is employing foreign workers whose temporary residence cards have expired — what are the company’s legal risks? The short answer: dual, independent risks — residence-law exposure (the company’s sponsorship/notification duties under Decree 282/2025/ND-CP and 62/VBHN-VPQH) and labour-law exposure (hitting the company directly under Decree 12/2022/ND-CP). Two independent violations, potentially sanctioned simultaneously.
1. The foundational duty: employ only lawfully residing foreigners
Clause 1, Article 45a of the Law on entry, exit, transit and residence of foreigners in Vietnam (consolidated document 62/VBHN-VPQH) provides: agencies, organisations and individuals may employ foreign workers only when they reside lawfully in Vietnam. An expired residence card means unlawful residence — continuing to employ the worker is a direct violation of this duty.
2. The duty to report detected violations
Upon detecting signs of violations of the law on entry, exit, transit and residence of foreigners, the company must immediately notify the nearest police authority (Clause 2, Article 45a of 62/VBHN-VPQH). Concealing the situation or continuing to house or assign work to the overstaying worker aggravates the risk.
3. Risk 1 — Residence-law sanctions (Article 21 of Decree 282/2025/ND-CP)
- Overstaying workers: fines on the 7-tier scale of VND 0.5–40 million (Article 21 of Decree 282/2025); failure to exit after the stay expires → forced exit (Article 30 of 62/VBHN-VPQH); serious cases → deportation under Decree 59/2026/ND-CP.
- Companies employing foreign workers while they reside unlawfully, or failing to report detected violations: VND 20–25 million under Article 21 of Decree 282/2025 (organisations pay double the individual level as a general rule). Citation note: cite “Article 21 of Decree 282/2025” with the verbatim act description — no specific point/clause is pinned for this act, as the full text has not been cross-checked.
- Sponsors failing to fulfil sponsorship duties or declaring untruthfully in invitation/sponsorship procedures: VND 20–25 million (individual) / VND 40–50 million (organisation) — point a, Clause 7, Article 21 of Decree 282/2025. Citation warning: VND 40–50 million is the organisation level (double the individual VND 20–25 million) — never present “40–50 million” as the general level.
- Harbouring, concealing or assisting persons staying illegally in Vietnam (below criminal thresholds): VND 30–40 million (point d, Clause 9, Article 21 of Decree 282/2025).
- Failure to declare temporary residence for foreign workers: VND 3–5 million / 10–15 million / 15–20 million by headcount (1–3 / 4–8 / 9 or more) — Article 21 of Decree 282/2025.
4. Risk 2 — Labour-law sanctions (Article 32 of Decree 12/2022/ND-CP): hitting the company directly
In practice, an expired residence card often comes with an expired work permit — an independent violation from the residence-law one:
- Foreign workers working with an expired work permit or expired work-permit-exemption confirmation: the worker is fined VND 15–25 million (Clause 3, Article 32); violating foreign workers may also be deported (Clause 5, Article 32 — deportation only, no “forced exit”).
- Employers using foreign workers without a work permit / without an exemption confirmation / with an expired work permit: VND 30–45 million (1–10 workers), VND 45–60 million (11–20 workers), VND 60–75 million (21 or more workers) — individual levels; organisations pay double: VND 60–150 million (Clause 4, Article 32 + Clause 1, Article 6 of Decree 12/2022/ND-CP).
Keep the distinction clear: an “expired residence card” (residence law — Decree 282/2025) and an “expired work permit” (labour law — Decree 12/2022) are two independent violations, potentially sanctioned simultaneously — do not merge them into one.
5. Risk 3 — Sponsorship and residence-declaration duties
Under Clause 2, Article 45 of 62/VBHN-VPQH, sponsoring organisations must complete procedures, guide workers in legal compliance, coordinate management for the declared purpose of entry, and notify the immigration management authority in writing when they no longer need to sponsor.
6. Risk 4 — Operations and reputation
A worker subjected to forced exit or deportation → the company loses staff abruptly; the company may be put under labour and immigration inspections; and its compliance record suffers when applying for new or amended IRCs and work permits.
7. Criminal warning
A company that, for profit, organises or brokers others’ illegal stay in Vietnam → Article 348 of the Penal Code (1–5 years’ imprisonment; aggravated 5–10 or 7–15 years).
8. Prevention (practical recommendations)
- Review residence card + work permit + passport validity for all foreign workers before signing contracts and periodically thereafter;
- File extension/renewal dossiers before expiry (05-working-day processing — Articles 35 and 37 of 62/VBHN-VPQH);
- On detecting an overstaying worker: notify the nearest police authority immediately and cooperate in arranging the worker’s exit.
Important note: foreign workers exempt from work permits (capital-contributing investors, board members, etc.) under Decree 219/2025/ND-CP (effective 07/8/2025, replacing Decree 152/2020/ND-CP) — the work-permit risk does not apply, but the residence-law risk (expired residence card) remains fully intact. Work-permit exemption ≠ residence-law exemption.
FAQs
A residence card expired 10 days ago — is the company at risk?
Yes — continuing to employ an unlawfully residing worker is fined VND 20–25 million under Article 21 of Decree 282/2025 (double for organisations), plus work-permit exposure if that also expired.
What if the worker is exempt from a work permit?
The residence-law risks remain fully: employing an unlawfully residing worker, sponsorship duties, residence declarations (Decree 282/2025).
Can the residence and labour violations be punished together?
Yes. They are two independent violations under two different decrees (Decree 282/2025 and Decree 12/2022), potentially sanctioned simultaneously.
Need help with visa or residence procedures for foreign investors in Vietnam? Reach FLAT Law Firm via the Contact page.
The information above is for reference only and does not constitute legal advice.
Transparency note: This article was drafted by FLAT Law Firm\u2019s AI content production system and reviewed by the internal review board (AI Legal Council QA). It has not been reviewed by a human lawyer.