Author:

• Nguyen Thi Huyen Anh – Senior Asociate
• Vo Nguyen Truc Linh – Legal Department

Handling labor discipline is one of the vital legal tools that enables employers to maintain order in the workplace. In order to ensure that a disciplinary decision is issued lawfully, enterprises must strictly adhere to the principles and prescribed procedures for disciplinary action as prescribed by law.

In practice, errors in identifying violations or non-compliance with proper disciplinary procedures, can expose enterprises to prolonged disputes and potential liability for damages. Through this article, CDLAF summarizes the principles and procedures for handling discipline under the provisions of the Labor Code, while providing recommendations for enterprises to mitigate legal risks during implementation.

1. Principles for Handling Labor Discipline

To mitigate legal risks when issuing a disciplinary decision, enterprises must strictly adhere to the following principles:

First and foremost, the employer bears the burden of proving the employee’s fault. This critical principle ensures that disciplinary actions are taken based on objective evidence rather than mere speculation. Therefore, the enterprise must collect and retain sufficient documentation to substantiate the violation prior to imposing any form of disciplinary measure.

Secondly, any disciplinary action must be conducted with the participation of the relevant grassroots employee representative organization of which the employee subject to discipline is a member. This serves as both a core principle and a distinct procedural requirement in handling labor discipline. This regulation helps establish a balance of power between the employer and the employee, ensuring fairness and objectivity throughout the process.

Thirdly, the employee must be present at the disciplinary hearing and has the right to self-defense or to be defended by a lawyer or their employee representative organization. In the event that the employee is under 15 years of age, the participation of their legal representative is mandatory. This provision is designed to safeguard the employee’s right to present their case, offer explanations, and protect their lawful rights and interests before the enterprise issues a disciplinary decision. However, pursuant to Decree No. 145/2020/ND-CP, if the employer has properly notified the required participants—including the employee—of the time and venue of the disciplinary hearing, but any such participant fails to confirm their attendance or confirms but fails to appear, the employer is entitled to proceed with the hearing. Consequently, enterprises should carefully retain all documents evidencing that the required notices were duly served in full compliance with the law, ensuring strict adherence to prescribed statutory sequences and procedures.

Fourthly, an enterprise may only apply a single disciplinary measure for any single violation. Where an employee commits multiple violations concurrently, only the highest form of discipline corresponding to the most serious violation shall be imposed.

Fifthly, labor discipline shall not be imposed on employees under circumstances strictly prohibited by law. These include periods when the employee is on sick leave, or when an employee is pregnant, on maternity leave, or raising a child under 12 months of age, alongside other protected cases stipulated under the Labor Code and its guiding instruments.

2. Sequence and procedures for handling labor discipline

Pursuant to the provisions of the Labor Code 2019 and Decree No. 145/2020/ND-CP, the sequence for handling labor discipline shall be conducted as follows:

• Determination of the employee’s violation

When handling labor discipline, the employer bears the burden of proving  the employee’s fault, any decision predicated on speculation or insufficient evidence carries an inherent risk of being deemed an unlawful disciplinary action.

For a violation detected at the time of occurrence, the employer must immediately draw up a record of the violation and promptly notify the grassroots employee representative organization or the legal representative (if the employee is under 15 years of age). In the event that a violation is detected after its occurrence, the enterprise must expeditiously gather concrete evidence (including documentation, electronic data, camera footage, inventory results, witness statements, etc.) to serve as a factual basis to prove the employee’s violation.

• Notification of handling labor discipline

Upon gathering sufficient grounds to handle labor discipline, the employer must send a disciplinary notice to the employee and the grassroots employee representative organization at least 05 working days prior to the date of the disciplinary hearing. The notice must clearly state the agenda, time, and venue of the disciplinary hearing, the full name of the employee subject to discipline, and the specific violation committed.

To establish proof of proper fulfillment of the notification obligation, the employer should send the notice via methods that preserve evidence, such as direct hand-delivery with a signed acknowledgment of receipt or registered mail services. Additionally, the notice may concurrently be sent via the employee’s email to maximize the likelihood of receipt.

• Conducting the labor disciplinary hearing

The enterprise shall proceed to conduct the labor disciplinary hearing in accordance with the pre-notified contents. If any required participant is unable to attend as scheduled, the employee subject to discipline and the employer shall renegotiate the time and venue of the hearing. In the event that the parties fail to reach an agreement, the enterprise shall determine the time and venue for the hearing. If any required participant fails to confirm their attendance or is absent, the labor disciplinary hearing shall still be conducted.

At the hearing, the employer must declare the violation and present the evidence serving as the grounds for disciplinary action. The employee retains the right to state their opinions, self-defend, or be defended by a lawyer or their employee representative organization in accordance with the law.

The entire proceedings of the hearing must be documented in a minutes, which shall be approved before the conclusion of the hearing and bear the full signatures of all participants. In the event that any individual refuses to sign, the secretary must explicitly record their full name and the reason for such refusal in the minutes.

• Issuance of the labor disciplinary decision

The labor disciplinary decision must be issued within the statute of limitations for labor discipline as prescribed by the Labor Code.The decision must be sent to all required participants in the disciplinary hearing.

Pursuant to Article 123 of the Labor Code 2019, the statute of limitations for handling labor discipline is 06 months, or 12 months for violations directly related to the finances, assets, or disclosure of technological or business secrets of the employer.  Where a case arises during a period in which the imposition of labor discipline is legally deferred, the statute of limitations shall be extended in accordance with the law.

3. Legal risks and recommendations for enterprises

Non-compliance with the proper principles, sequences, and procedures for handling labor discipline may expose an enterprise to numerous legal risks. In the event that a disciplinary decision is issued in violation of statutory regulations, the enterprise may be compelled to revoke such decision, reinstate the lawful rights and interests of the employee, and compensate the employee for any damages in accordance with the law. For instances of unlawful dismissal, pursuant to Clause 2, Article 73 of Decree No. 145/2020/ND-CP, the employer must fulfill obligations equivalent to those arising from an unlawful unilateral termination of an employment contract. These include reinstating the employee to his or her position, paying back wages, making social insurance contributions for the period the employee was barred from working, and executing compensation obligations as prescribed by law.

Additionally, the enterprise may be subject to administrative penalties, with fines ranging from VND 5 million to VND 10 million. In cases where discipline is imposed for a violation that is not explicitly stipulated in the internal labor regulations, the fine may range from VND 20 million to VND 40 million.

Prior to applying any form of labor discipline, the enterprise must conduct a thorough review to ensure that the violation is explicitly documented in the internal labor regulations. The enterprise must prove that there are sufficient grounds to substantiate the employee’s fault, that the statute of limitations remains valid, and that all statutory principles, sequences, and procedures are fully satisfied. Furthermore, the enterprise should regularly review and update its internal labor regulations to ensure alignment with current legal provisions and the enterprise’s operations. For complex cases or those with a high risk of dispute, the enterprise is strongly advised to consult a lawyer or a legal expert before proceeding with labor discipline.

Strict compliance with regulations on handling labor discipline not only assists enterprises in ensuring the legality of their disciplinary decisions but also mitigates the risk of disputes, thereby contributing to the establishment of stable and sustainable labor relations.

Time of writing: June 29, 2026

The article contains general information which is of reference value. In case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer  at  info@cdlaf.vn

You can refer for more information:

• Non-Compete Agreements In Employment Relationships: Are They Enforceable In Vietnam?
• Determining “Serious Damage” in Disciplinary Dismissal
• What Must Social Networks and Online Platforms Do to Comply with the Personal Data Protection Law 2025?