Labour and Employment

Fined for Missing Exemption Confirmation

“I am exempt, so why would I need a confirmation” is the thinking that lands many enterprises and foreign experts in penalty records. In theory, the exemption ground exists objectively in the law; in an inspection, the labour authority sees only a foreigner working with no labour document whatsoever in the file. This article analyses the penalty consequences of skipping the exemption confirmation, how to remediate when discovered, and how to organise internal control so it does not recur. This subject is entirely different from other administrative-penalty articles on this site (for example article EXP-6125 on fines for lacking a complaint-receiving channel): here the violation sits in each individual’s own labour documents, not in an organisational duty of the enterprise.

1. Why “being exempt” still ends in a violation record

The foreign-labour management system runs on documents: a worker either holds a work permit, or holds an exemption certificate, or belongs to the short-stay group that completed the notification procedure. When a labour inspection team or competent authority checks the enterprise, an expert who is theoretically exempt but holds no certificate is initially recorded as working without valid documents — because at the moment of inspection the enterprise can produce no document at all proving that person’s labour status. Proving the exemption ground afterwards does not erase the risk completely: the working period before confirmation existed remains a period of work without valid proof, and the handling authority may sanction the use of a foreign worker contrary to regulations. In other words, the certificate does not create the exemption — the exemption comes from the law — but it is the only document that makes the exemption verifiable; without it, the exemption effectively does not exist before an inspection team.

2. The specific fines under Decree 283/2026/ND-CP

From 10 September 2026, Decree 283/2026/ND-CP (replacing Decree 12/2022/ND-CP) is the applicable sanctioning text. Its Article 13 sanctions a foreign worker working in Vietnam without a work permit or without an exemption certificate: the worker is fined from VND 15,000,000 to VND 25,000,000 and faces the additional sanction of deportation from Vietnam. On the employer side, using a foreign worker without a permit or certificate is fined by headcount: 1 to 10 workers, VND 30,000,000 to VND 45,000,000; 11 to 20 workers, VND 45,000,000 to VND 60,000,000; 21 workers or more, VND 60,000,000 to VND 75,000,000, together with the remedial measure of paying the worker full salary for the period already worked. Note that these bands are the individual-level fines under the current sanctioning decree’s convention, and violating organisations are fined at double under the general rule of the Law on Handling of Administrative Violations, unless the article provides otherwise — an enterprise named in a violation record must check the original text to determine its exact applicable band. Acts occurring before 10 September 2026 are considered under the transitional Article 67 of Decree 283/2026/ND-CP and the Decree 12/2022/ND-CP framework at the time of the act.

3. Remediation when discovered — by the authority or by yourself

When an enterprise self-audits and discovers an expert working under an exemption ground without a certificate, the correct remediation sequence has four steps. Step one: suspend or rearrange the worker’s duties if needed so the undocumented working period does not lengthen during handling. Step two: complete the confirmation file immediately under the Decree 219/2025/ND-CP procedure with full proof of the exemption ground — this file doubles as the explanation document for inspectors. Step three: proactively approach the local labour authority, presenting the self-discovery and remediation; a proactive attitude is a circumstance considered in administrative violation handling. Step four: audit the enterprise’s entire remaining foreign workforce to confirm this was an isolated case rather than a systemic error, and keep the audit file. What must absolutely be avoided is backdating documents or retroactively “regularising” the timeline: forged documents in a labour file are sanctioned far more heavily (higher fines and possible criminal exposure) than the original missing-confirmation violation.

4. Inspection triggers and prevention: build confirmation into HR control

Missing confirmations are usually discovered in three settings: periodic or surprise labour inspections at the enterprise; residence procedures, when a residence card is renewed and immigration authorities cross-check labour documents; and the enterprise’s own review before a transaction, audit or tax inspection. The common point is that the violation is rarely caught on day one — it is caught months later, when the undocumented period is already long and the exposure large. Effective prevention has three layers. Layer one, onboarding control: no foreigner starts work unless his personnel folder already holds one of three documents — a work permit, an exemption certificate, or a short-stay notification file. Layer two, expiry tracking: a reminder calendar for certificate expiry dates tied to the residence-card renewal calendar. Layer three, periodic reconciliation: each quarter, HR matches the list of foreigners actually working against the list of still-valid documents; any mismatched line is resolved within that quarter. These three layers cost far less than one penalty record plus the deportation of a key expert mid-project.

This article has been quality-reviewed by the FLAW AI Legal Council