Administrative Fines Imposed on Employers with No Social, Health Insurance for Domestic Workers

According to Government Decree 28/2020/ND-CP, effective from April 15, 2020, on administrative fines on violations in labor, social insurance, contractual manpower export, employers will be fined VND10-15 million for not buying social insurance and health insurance for domestic workers.

According to the Labor Code, a domestic worker is a worker who regularly does domestic work (the work in the labor contract is repeated over a certain period of time such as every hour, day, week or month) of one or more households, including housewife, butler, childcare, patient care, elderly care, driver, gardener and other different jobs for the employer’s household but not related to commercial activities.

According to a report of the Research Center for Gender, Family and Community Development (GFCD), a majority of domestic workers are women from rural areas with low educational level: 84.6 % have lower secondary education and 22% with primary education or lower. Underage female workers and the elderly are also involved in domestic work. Therefore, the determination of employers' obligations on social security for domestic workers is always highly valued by the Party and the Government.

Breakthrough in legal policies to ensure better benefits for domestic workers

This was a judgment of experts when Decree 27/2014/ND-CP dated April 7, 2014 was issued by the Government over six years ago. According to Article 19, the employer is responsible for making an additional payment at the same time with the employee’s payment period an amount equal to the compulsory social insurance and health insurance premium under the employer's responsibility in line with the law for the employee to pay social insurance and health insurance. With this provision, domestic workers become a formal job in society, have a labor contract and have access to social insurance and health insurance like other professions.

However, in reality, one recorded shortcoming is that a majority of domestic workers are often elderly or underage who have limited awareness of social insurance and health insurance benefits and their benefits equivalent to the amount for social insurance and health insurance as per Decree No. 27 will be ignored by their employers. Therefore, it is necessary to have specific instructions for effective enforcement of Decree 27/2014/ND-CP to ensure the rights and benefits of domestic workers.

Official administrative sanctions

Recently, the Government issued Decree 28/2020/ND-CP on administrative sanctions on violations in labor, social insurance, and contractual manpower export. According to this rule, the employer will be subject to a warning for not signing a written labor contract with the domestic worker; not paying travel expenses for their domestic workers who quit the job and return to their registered residence, except for cases where domestic workers prematurely terminate the labor contract. Notably, Decree No. 28 supplements regulations on protecting rights and interests of domestic workers. Article 29 that specifies, violating regulations on domestic work, the employer will be fined VND10-15 million for failing to pay the domestic worker the amount equal to social insurance and health insurance premiums in line with the law for the employee to pay insurance on their own. The employer must pay the amount equal to social insurance and health insurance in full for domestic workers.

A fine of VND10-15 million is also applied to the employer keeping original personal identification documents of domestic workers; employing elderly laborers to do heavy, hazardous and dangerous jobs that also adversely harm their health. In addition, a fine of VND2-5 million is imposed for failing to ensure rest time for employees during working hours, shifts, personal leaves and unpaid leave under the law or not reduce working time for employees in the last year before retirement. A fine of VND10-20 million is applied if the employer violates regulations on weekly, annual or public holidays, while a fine of VND20-25 million is subject for mobilizing workers to work overtime without their consent.

 Source: Vietnam Business Forum