1. Sign a service contract instead of a labor contract
Many businesses let workers sign "service/collaborator contracts" to avoid social insurance obligations, but if the nature of the job has full elements of labor relations (fixed working hours, subject to management, periodic salary payments), the authorities can determine that this is a disguised labor contract and collect social insurance and impose administrative penalties.
2. Not registering for social insurance - health insurance - unemployment insurance on time
According to regulations, businesses must register social insurance for employees within 30 days from the effective date of the contract. Delaying or skipping this step causes businesses to face fines based on the number of violating employees and to collect late payment interest.
3. Employing foreign workers without a work permit
Foreign experts and managers working in Vietnam without a valid work permit may be deported, businesses will be fined, and it will affect visa/work permit applications for other employees in the future.
4. Dismissal without proper legal procedures
Unilaterally terminating a labor contract without proper grounds or without giving enough advance notice can cause the business to have to pay many times the salary, get the employee back, and pay court fees if the dispute goes to court.
5. Not storing labor records according to regulations
Lack of written labor contracts, payroll, and full social insurance payment documents puts businesses at a great disadvantage when subjected to labor audits or when disputes arise with employees.
Why does EOR help eliminate these risks?
When using EOR services, service providers like Nhân Kiệt sign the labor contract in their legal name, are responsible for registering social insurance on time, processing work permits and storing records in accordance with regulations - businesses focus on operations, not worrying about compliance.
Frequently asked questions
Can an enterprise that has committed a violation be remedied? It can be remedied by reviewing all labor records, switching to the correct type of labor contract and registering for additional social insurance — there should be a labor legal consulting unit to assist in minimizing arrears fines.
What is the penalty for late payment of social insurance? The penalty and interest for late payment vary according to current regulations and the number of violating employees; Businesses should contact consulting units for accurate calculations for each case.
Does EOR help handle previously violated records? Nhân Kiệt supports consulting on corrective action and takes over labor management from the time of signing the service contract, helping businesses comply with regulations from now on.