Obligations of businesses employing foreign workers: reporting, social insurance, work permit revocation and common penalties

Many businesses pour their effort into obtaining work permits and then consider the job done. In reality, throughout the period of employing a foreign national, the business still has obligations to the labour authorities and the social insurance agency. When the contract ends, the business must also revoke the permit and return it. Most penalties found during inspections arise at this stage, not at the application stage.

From 10/9/2026, penalties for violations in the field of labour and social insurance are governed by Decree 283/2026/NĐ-CP, which replaces Decree 12/2022/NĐ-CP. Many articles online still quote the old fines. HR departments should review their internal procedures against the documents currently in force.

Current legal basis

Regulations on foreign workers have changed considerably over the past year or so. The central authority is now the Ministry of Home Affairs. Provincial People's Committees have the power to issue, reissue, extend and revoke work permits, and may delegate this to other bodies. References in some documents to the Ministry or Department of Labour, Invalids and Social Affairs are out of date.

Work permits and certificates of exemption from work permits issued under the old regulations remain valid until they expire. Reissuance and extension follow the new regulations.

• Decree 219/2025/NĐ-CP dated 07/8/2025 on foreign workers working in Vietnam, effective from 07/8/2025, replacing Decree 152/2020/NĐ-CP and Decree 70/2023/NĐ-CP.
• The 2024 Law on Social Insurance and Decree 158/2025/NĐ-CP on compulsory social insurance, both effective from 01/7/2025.
• Decree 283/2026/NĐ-CP issued on 15/7/2026 on administrative penalties in the field of labour and social insurance, effective from 10/9/2026.
• Applications are submitted through the provincial Public Administrative Service Centre: in person, by public postal service, through an authorised representative or online via the National Public Service Portal.

Reporting and notifications to the authorities

Under the old regulations, businesses submitted a six-monthly report on their use of foreign workers before 05/7 and an annual report before 05/01. According to current guidance, Decree 219 has abolished these two periodic reports and retains only ad hoc reports when requested by the competent authority. Even so, businesses should confirm this with the local receiving authority, as some provinces may have their own guidance.

Abolishing periodic reports does not mean abolishing all information obligations. Businesses must still notify the authorities in certain cases and still declare their workforce as they do for Vietnamese employees.

• Ad hoc reports: keep a ready list of foreign nationals, permit numbers, positions, workplaces and terms so it can be submitted when the authority requests it.
• Workers exempt from work permits who only require notification: send a notice to the competent authority at least 03 working days before the worker starts work.
• Those working a total of less than 90 days in a calendar year are exempt from work permits; the old limit on the number of entries has been removed.
• When recruiting additional foreign nationals under labour contracts: advertise the position to Vietnamese workers at least 05 days before submitting the application (Clause 1, Article 18 of Decree 219). The explanation of labour demand is now part of the work permit application.
• Declare the use of labour and update the labour management register, including for foreign nationals. Deadlines for reporting workforce changes may have changed under the new Law on Employment; check with the local authority.

Compulsory social insurance for foreign nationals

Foreign nationals with a fixed-term labour contract of 12 months or more with an employer in Vietnam are subject to compulsory social insurance (Clause 2, Article 2 of the 2024 Law on Social Insurance; Clause 1, Article 3 of Decree 158/2025). This is an obligation of the business, not a choice for the employee.

Some cases are excluded, for example intra-company transferees, those who have reached retirement age, or where an international treaty provides otherwise. The exact scope should be checked against Article 2 of the 2024 Law on Social Insurance and Article 3 of Decree 158 before deciding not to contribute.

• The employee contributes 8% of salary to the retirement and survivorship fund (Article 9 of Decree 158/2025). The employer's contribution rate, health insurance and the application of unemployment insurance should be confirmed with the social insurance agency where you are registered.
• In any month in which the employee does not work and receives no salary for 14 working days or more, no social insurance is paid for that month, except for maternity leave.
• Register as soon as the contract qualifies; do not wait until the employee has a temporary residence card.
• When the contract ends or the employee returns home, pay social insurance in full so that benefits can be settled in time. Unpaid amounts will be collected retrospectively under Clause 1, Article 40 and Clause 1, Article 41 of the Law on Social Insurance.
• Late social insurance payments incur a penalty of 12% to 15% of the late amount under Article 43 of Decree 283/2026.

Revoking work permits when contracts end

When the labour contract ends, the work permit ceases to be valid. The grounds for revocation are set out in Article 30 and the procedure in Article 31 of Decree 219/2025. A new point compared with before: a permit is revoked when the worker is prosecuted or held criminally liable, replacing the vague ground of violations affecting security and order under the old regulations.

According to common guidance, within 15 days of the permit ceasing to be valid, the business must recover it and return it to the issuing authority. The required documents and the authority's confirmation deadline may differ from the old Decree 152, so check with the receiving office in advance. Revocation usually carries no fee.

• Step 1: Confirm the contract end date in writing and calculate the 15-day deadline immediately.
• Step 2: Collect the original work permit from the employee before they leave the job or Vietnam.
• Step 3: Prepare a document stating the reason for revocation and submit it with the permit to the issuing authority. If the permit cannot be recovered, submit a written explanation.
• Step 4: Settle social insurance up to the month the contract ends.
• Step 5: Deal with the temporary residence card sponsored by the business in line with the immigration authority's guidance, as the employee no longer has grounds for sponsorship.
• Step 6: Keep copies of the revocation file and the confirmation to present during inspections.

Common violations found during inspections

The list below is compiled from the categories of conduct penalised under the regulations, not from official inspection statistics. HR departments can use it as a self-review checklist before inspectors arrive.

The most common errors usually stem from not tracking expiry dates and not updating records when an employee's job changes. Keep a single tracking sheet for each person, covering passport, work permit, temporary residence card and contract expiry dates.

• Employing someone without a work permit, or with a permit that has expired because the extension application was submitted late.
• The employee working in a job title or location different from that stated on the permit.
• Failing to send notice at least 03 working days in advance for those who only require notification.
• Failing to recover and return the permit after the contract ends.
• Failing to pay, or paying late, social insurance for those with contracts of 12 months or more.
• Failing to declare the workforce, or a labour management register missing information on foreign nationals.
• Failing to submit a report when requested by the competent authority.
• Unlawfully exploiting, sharing or using employee data, for example sending passport copies to unrelated parties.

Penalties: which regulations apply

For violations committed from 10/9/2026, Decree 283/2026 applies. For conduct that occurred before then, the general principle is that the regulations in force at the time of the violation apply, unless the new regulations are more favourable. The transitional provisions of Decree 283 should be checked for each specific case.

The new fines for violations specific to foreign workers should be looked up directly in the full text of Decree 283. For reference, under the old Decree 12/2022, organisations employing foreign nationals without work permits could be fined from 60 to 150 million dong depending on the number of people, while the workers themselves were fined and forced to leave the country or deported. The fines already identified in Decree 283 include:

• Failing to declare the use of labour or update the labour management register: 1 to 3 million dong (the rate for individuals; the rate for organisations should be checked).
• Late social insurance payment: 12% to 15% of the late amount.
• Unlawfully exploiting, sharing or using employee data: 20 to 40 million dong; unlawfully buying or selling employee data: up to 70 million dong.
• Recruitment for the purpose of exploitation or forced labour: 50 to 75 million dong.

How Gateway can help

Gateway works with HR departments on work permits for foreign nationals, helping businesses keep their paperwork on time and in the right category. Service fees are quoted case by case; government fees follow each locality's regulations and third-party costs are charged separately. Contact: [email protected], +84367387309.

• Reviewing the position, qualifications and experience to determine the right route: new permit, extension or exemption.
• Preparing applications for new, extended and reissued work permits in case of loss, damage or changes to information.
• Obtaining certificates of exemption from work permits, or submitting notifications for exempt categories that only require notification.
• Drafting documents for the business to sign and stamp; submitting applications, following up and providing explanations when the authorities request them.