“Extending the salary review period” is one of the least-used — and most frequently misapplied — disciplinary measures in Vietnamese labor law: it is confused with “salary cuts,” imposed without the mandatory procedure, or applied to employees who have no salary-review regime at all. This article sets out 6 key points under the Labor Code 45/2019/QH14 (effective 01/01/2021) and Decree 283/2026/ND-CP (effective 10/9/2026, replacing Decree 12/2022/ND-CP).
1. Only four disciplinary measures are permitted — employers may not invent more
Article 124 of the 2019 Labor Code lists exactly four forms of labor discipline: (1) reprimand; (2) extension of the salary review period for no more than 06 months; (3) demotion; (4) dismissal.
This list is closed: employers may not invent additional forms such as salary-grade demotion, salary deductions, or monetary fines disguised as “discipline.” Any measure outside these four is unlawful and may be sanctioned, as well as challenged by the employee.
2. Be clear: extending the review period is NOT a salary cut
This is the most common and most dangerous confusion. Article 127.2 of the Labor Code strictly prohibits “imposing fines or cutting salaries in place of labor discipline.” Extending the salary review period is a lawful measure under Article 124 — it only delays the date of the next salary review, and must not touch the employee’s current salary.
In other words: the company may “freeze” the raise schedule for up to 06 months, but may not reduce a single dong of the salary currently paid. Employers that deduct salaries or impose fines in the name of discipline face heavy sanctions (see point 6). Article 127.3 further prohibits disciplining conduct not provided for in the internal labor regulations or the concluded labor contract — the conduct must be defined in advance; there is no retroactive discipline.
3. The mandatory procedure: one misstep can void the disciplinary decision
Article 122 of the Labor Code and Article 70 of Decree 145/2020/ND-CP prescribe a mandatory disciplinary procedure:
- (a) The employer must prove the employee’s fault;
- (b) Notify the employee and the employee representative organization of the meeting’s content, time, and venue at least 05 working days in advance;
- (c) The employee must attend and has the right to defend themselves or be defended by a lawyer or the employee representative organization;
- (d) Minutes of the meeting must be recorded;
- (e) The disciplinary decision must be issued within the limitation period.
Dispute practice shows that skipping the 05-working-day notice or missing the meeting minutes are the two errors most likely to get a disciplinary decision declared void by a court. Note: a draft amendment to Decree 145/2020 is under consultation but had not been issued as of 14/10/2026 — this article applies the current rules.
4. Limitation periods and prohibited timing
Article 123 sets the disciplinary limitation period at 06 months from the date of the violation, and 12 months for violations directly related to finance, assets, or disclosure of the employer’s technological or business secrets. Do not state “the period is always 06 months” as absolute — the 12-month case is common in finance and asset matters. In the cases under Article 122.4, the period may be extended but by no more than 60 days.
Article 122.4 also lists periods during which discipline may not be imposed: the employee is on sick leave or convalescence; on leave approved by the employer; in temporary detention or custody; awaiting investigation results (for conduct under Article 125.1 and 125.2); female employees who are pregnant, on maternity leave, or nursing a child under 12 months; employees with mental illness or other conditions causing loss of cognitive or behavioral control. Disciplining during these periods is not only void but heavily sanctioned.
5. Expungement, reduction — and the consequence of repeat violations leading to dismissal
Article 126 provides: an employee disciplined by salary-review extension, after 06 months from the discipline date without further violations, is automatically expunged of the disciplinary record. After serving half of the period with correction and progress, the employer may consider reducing the remaining period.
Conversely, Article 125.3 (note: clause 3, not clause 1) provides that an employee disciplined by salary-review extension (or demotion) who repeats the violation before the record is expunged falls under the cases for dismissal. “Repeat” means repeating the disciplined conduct before expungement under Article 126. Employers should therefore track and file disciplinary records carefully — they are the foundation for a later dismissal decision.
6. Administrative sanctions for improper discipline — and practical feasibility
Decree 283/2026/ND-CP (replacing Decree 12/2022 — never cite Decree 12/2022 for violations after 10/9/2026) provides at Article 25:
- Article 25.2.dd: a fine of VND 5–10 million (individual) for disciplining without proper procedure or outside the limitation period;
- Article 25.3.c, d, dd, e: a fine of VND 20–40 million (individual) for: imposing fines or salary cuts in place of discipline; disciplining conduct not provided in the internal labor regulations; applying multiple disciplinary measures for one violation; disciplining during prohibited periods. Organizations face double the individual fine (Article 7.1).
Finally, a feasibility note: salary-review extension only works where the company actually has a salary-review regime (a salary scale/table, or an agreement in the labor contract, collective labor agreement, or internal rules). For short-term contract employees or companies with no raise regime, this measure cannot be applied in practice — forcing it invites complaints. Also distinguish “salary-review extension” (max 06 months, Article 124) from a company unilaterally delaying raises outside the disciplinary framework — the two are entirely different in legal nature.
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Frequently asked questions
Is extending the salary review period the same as a salary cut?
No. It is a lawful disciplinary measure (Article 124) — it only delays the next salary review by up to 06 months and may not reduce the current salary. Salary cuts or fines in place of discipline are prohibited (Article 127.2) and fined VND 20–40 million (individual) under Article 25.3 of Decree 283/2026.
What if the 05-working-day meeting notice was forgotten?
The disciplinary decision risks being declared void in a dispute. Notifying the employee and the employee representative organization at least 05 working days in advance is mandatory (Article 122 of the Labor Code; Article 70 of Decree 145/2020).
What happens if the disciplined employee repeats the violation?
Under Article 125.3 of the Labor Code, a repeat violation before the disciplinary record is expunged is grounds for dismissal.
Legal bases: Labor Code 45/2019/QH14 (Articles 122–127; consolidated text 18/VBHN-VPQH 2026 — amendments do not touch Articles 122–128); Decree 145/2020/ND-CP (Article 70); Decree 283/2026/ND-CP (Articles 7, 25).
Does your company need to handle a labor disciplinary case with proper procedure or review its internal labor regulations? Reach us via the Contact page of FLAT Law Firm to avoid the risk of a disciplinary decision being declared void.
For reference only, not legal advice.
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.
