The Internal labour rules (the “ILR”) is a written agreement between the employer and the employee. This agreement clearly states in detail the mandatory clauses and provisions during the management and working process. It is also a basis for labour discipline when a labour dispute arises.
Internal labour rules plays an important role in the management and usage of labour of enterprises. Any organization that wants to operate effectively, and consistently should issue a standard internal labour rules having clear and transparent clauses.
In addition, according to the Labour Code 2019, some enterprises shall register internal labour rules with competent authorities.
In this article, PL & Partners would like to share with you certain notes about the newest registration procedures for internal labour rules from 2021.
1. WHICH ENTERPRISE SHALL REGISTER INTERNAL LABOUR RULES?
Pursuant to Article 119 of the Labour Code 2019, If the enterprise has 10 employees or more, it shall issue written internal labour rules and register the rules with the specialized authority on labour under the provincial-level People’s Committee (Department of Labour, Invalids and Social Affairs) where the enterprise place its headquarters.
Notes:
For enterprises using less than 10 employees, even though it is not compulsory to issue and register internal labour rules in writing, but they still have to agree on the labour discipline, and compensation obligation in the labour contract with employees. (Legal basis: Article 69 of Decree no 145/2020/ND-CP).
Enterprises with 10 employees or more shall register the internal labour rules.
2. REGISTRATION PROCEDURES OF INTERNAL LABOUR RULES.
2.1. Required documents and quantity.
Pursuant to Article 120 of the Labour Code 2019, and Decision no 338/QD-LDTBXH, the registration dossier comprises:
| No | Document | Type | Quantity |
| 1 | Written request for registering internal labour rules | Original | 01 |
| 2 | Internal Labour Rules (in compliance with the law and including the contents specified in Article 118.2 of Labour Code 2019). | Original | 01 |
| 3 | Written feedback from the company’s grassroots trade union and the representative organization of employees (for enterprises having the grassroots trade union and the representative organization of employees at the company). | Original | 01 |
| 4 | Employer’s documents that have the regulations relating to labour discipline and compensation obligation (if any). | Original | 01 |
Number of dossier: 01 (one)
2.2. Procedural sequences.
Pertaining to Decision no 338/QD-LDTBXH dated 17 Mar 2021 of the Minister of Labour, Invalids and Social Affairs, the sequence of registering the internal labour rules shall be as follows:
- Step 1:
Within 10 days from the issue date of the internal labour rules, enterprises shall prepare the dossier as prescribed by law and submit it to the specialized authority on labour under the provincial-level People’s Committee (Department of Labour, Invalids and Social Affairs) or the specialized authority on labour under the district-level People’s Committee (Office of Labour, Invalids and Social Affairs) where the enterprise is based.
- Step 2:
Within 7 working days from the receipt of registration dossier, if detect any unlawful regulations, the Department or Office of Labour, Invalids and Social Affairs (if the Office is authorized by the Department) shall notify and instruct the enterprise in the amendment, supplement, and re-registration of internal labour rules.
2.3. Time limit for submission.
Within 10 days from the issue date of internal labour rules, the employer shall submit the registration dossier.
2.4. Method of submission.
Employers submit the dossier to the Department or Office of Labour, Invalids and Social Affairs (if the Office is authorized by the Department) under one of these methods:
- Online submission through the public service portal;
Enterprises in Ho Chi Minh City can register via this portal: dichvucong.hochiminhcity.gov.vn
- Direct submission;
- Postal submission.
2.5. Charges and fees.
None
2.6. Validity and term of internal labour rules.
- For enterprises with 10 employees or more: the internal labour rules shall take effect after 15 days from the date the Department or Office of Labour, Invalids and Social Affairs (if the Office is authorized by the Department) receives the adequate registration dossier.
- For enterprises using less than 10 employees that issue written internal labour rules: the validity shall be decided by the enterprise and specified in the ILR.
- Besides, unlike the Collective Labour Agreement which is valid within 01-03 years, the Labour Code doesn’t stipulate the term of internal labour rules, hence, the ILR’s term lasts concurrently with the term of operation of the enterprise. When the enterprise stops operating, the ILR becomes invalid.
Notes:
- In the event that the enterprise has branches, business units, business locations, and production facilities placed in different areas, the enterprise shall send the registered ILR to the Department or Office of Labour, Invalids and Social Affairs (if the Office is authorized by the Department) where branches, business units, business locations, production facilities are placed. (Legal basis: Article 119.4 and 119.5 of the Labour Code 2019).
- The ILR shall be notified to the employees and its main content must be listed at necessary places in the workplace.
3. FORMS OF SANCTION.
Pursuant to Article 18 of Decree no 28/2020/ND-CP dated 1 Aug 2020 stipulating the administrative sanction in the sector of labour, social security, and bringing Vietnamese employees abroad to work under contract, in particular:
- For the act of not having public notification or not listing the main content of the internal labour rules at necessary places in the workplace: enterprises shall be imposed a monetary fine ranging from VND 500,000 to VND 1,000,000.
- For the act of not having written internal labour rules or not registering the ILR with the competent authority (applied for enterprises with 10 employees or more): enterprises shall be imposed a monetary fine ranging from VND 5,000,000 to VND 10,000,000.
- For the act of using the invalid internal labour rules: enterprises shall be imposed a monetary fine ranging from VND 5,000,000 to VND 10,000,000.
4. DO WE HAVE TO RE-REGISTER THE AMENDED INTERNAL LABOUR RULES?
With new regulations of the Labour Code 2019, enterprises will need to amend their internal labour rules in compliance with the law. For instance, they shall supplement the mandatory contents that is not prescribed by the previous Labour Code, particularly the prevention and control of sexual harassment at workplace; sequence, procedure to handle the act of sexual harassment at workplace; competent person to discipline the employee, etc and various new regulations.
Then when enterprises amend the internal labour rules under new regulations, shall they re-register the ILR?
Previously, pursuant to Article 28.5 of the Decree no 05/2015/ND-CP guiding the implementation of Labour Code 2012 stipulates that: When amend, supplement valid internal labour rules, employers shall consult with the grassroots representative organization of employees and conduct the re-registration.
However, Article 69.3 of the Decree no 145/2020/ND-CP guiding the Labour Code 2019 now stipulates that: When amend, supplement internal labour rules, employers shall consult with the grassroots representative organization of employees if the company has such organization.
Besides, Decree 145/2020/ND-CP and the Labour Code 2019 have no regulations that mention the re-registration upon amendment. Therefore, enterprises are not liable for carrying out this procedure.
Nevertheless, enterprises still need to make sure that the content of the ILR complies with the law on labour and relevant legal regulations (according to Article 118.2 of the Labour Code 2019).
The internal labour rules clearly show in detail the compulsory clauses and provisions during the management and working process.
Thus, PL & Partners Law Firm has presented to you some remarkable points about the registration procedure in labour. Hope you can have a deep look into these regulations through this article, thereby having suitable preparation for your company.
If you need further legal assistance in labour and enterprises in particular as well as other sectors, please contact us via:
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