Internal labor regulations (nội quy lao động or ILR) form the legal framework governing workplace discipline and personnel management in Vietnam. For foreign-invested enterprises (FDI), and within the broader employment law framework, issuing and registering a compliant ILR is a core prerequisite for a defensible basis to impose dismissal, demotion, or wage increment deferral.
Without an ILR that is registered and in effect, employers carry a high risk that disciplinary dismissals will be ruled unlawful, because discipline must rest on conduct set out in the ILR or the labor contract.
1. Mandatory Thresholds for Written ILR Issuance and Registration
Employer obligations depend on workforce size (Articles 118 and 119 of Labor Code 2019, Law No. 45/2019/QH14):
- Enterprises with 10 or more employees: Must issue written ILR. Within 10 days from issuance, the employer must submit a registration dossier to the provincial labor authority where the business is registered (now the Department of Home Affairs; zone Management Board for employers in industrial zones, see below).
- Enterprises with fewer than 10 employees: Must still have internal rules, but written ILR is not mandatory; disciplinary terms and material liability are agreed in the individual labor contracts. If an employer issues written ILR voluntarily, registration is optional.
Registration with the provincial Department of Home Affairs follows Decree 129/2025/ND-CP, Article 67. The provincial Department of Home Affairs (DOHA) took over the labor functions of the former Department of Labor, Invalids and Social Affairs (DOLISA) in 2025. Employers inside an industrial or economic zone usually register their internal labor regulations with the zone Management Board, which handles this task under Decree 35/2022/ND-CP; confirm the local procedure with the board, because practice varies by province.
Effective date: The ILR becomes effective 15 days after the competent labor authority receives the complete registration dossier. Effectiveness is determined by the dossier receipt date, not the subsequent issuance of an acknowledgment notice. If the ILR contains provisions contrary to law, the authority must notify and guide the employer to amend it within 07 working days.
2. Nine Statutory Mandatory Provisions Under Article 118 Labor Code
The ILR must cover nine components set by Labor Code 2019 and Decree 145/2020/ND-CP. If the ILR contains unlawful provisions, the authority notifies the employer to amend it and re-register:
| Item | Mandatory domain | Legal basis & Core requirements | FDI compliance notes |
|---|---|---|---|
| 01 | Working hours and rest periods | Caps: 8h/day, 48h/week; OT ≤40h/month, 200-300h/year | Detail shift schedules, breaks, and voluntary overtime consent |
| 02 | Workplace order | Operational scope, professional conduct, facility entry rules | Prohibit parent company rules that violate Vietnamese laws |
| 03 | Occupational safety and health | Law on OSH 2015; protective equipment (PPE), fire safety | Mandatory for factories; establish emergency workflows |
| 04 | Sexual harassment prevention | Art. 84-86 Dec. 145. Definitions, reporting, inquiry protocols | Mandatory by law; if missing, the authority requests amendment and re-registration |
| 05 | Asset and trade secret protection | Safeguarding technology, intellectual property, BYOD rules | Financial penalties and wage deductions are banned |
| 06 | Temporary job reassignment | Art. 29 LC 2019. Max 60 cumulative working days/year; minimum 3 working days’ notice | Specify force majeure, disasters, or unexpected operational needs |
| 07 | Disciplinary violations and penalties | 4 statutory forms: Reprimand, Deferral (≤6 mos), Demotion, Dismissal | Offenses not specified in the ILR or the labor contract cannot be disciplined |
| 08 | Material liability | Art. 129-130 LC. Property indemnity; deduction capped at ≤30% net pay | Define objective damage valuation and repayment terms |
| 09 | Disciplinary authority designation | Specific title authorized to sign decisions (Legal Rep or Delegate) | Formal power of attorney must be valid on the decision date |
Two Errors to Check Before Filing:
Omitting detailed internal protocols on workplace sexual harassment prevention and stipulating illegal salary deduction penalties are the two points to review before submitting an ILR dossier.
3. Step-by-Step Registration Procedure and Statutory Dossier with the Department of Home Affairs
Registering an ILR follows a fixed timeline under Labor Code 2019:
- Draft ILR in Vietnamese: FDI enterprises may create a bilingual version for internal operations, but the Vietnamese text prevails in disputes.
- Consult employee representative organization: Where a grassroots employee representative organization exists (the trade union executive committee or another body), the employer must consult it.
- Execute issuance decision: The company legal representative formally signs the promulgation decision.
- Submit dossier within 10 days of issuance: Submit the application dossier to the provincial Department of Home Affairs where the business is registered.
- Effective implementation: In the absence of an amendment request within 07 working days, the ILR takes effect 15 days after complete dossier receipt.
Mandatory Registration Dossier Under Article 120 Labor Code 2019
| Dossier document | Quantity | Statutory requirements & Review criteria |
|---|---|---|
| Written application for ILR registration | As instructed by the receiving authority | Signed by the company’s legal representative |
| Internal labor regulations text | As instructed by the receiving authority | Drafted in Vietnamese (accompanied by bilingual translation if applicable) |
| Written comments of the employee representative organization | As instructed by the receiving authority | Applies where a grassroots employee representative organization exists |
| Related documents on labor discipline and material liability | As instructed by the receiving authority | The employer’s documents on labor discipline and material liability (if any) |
The ILR must be notified to all employees and its main contents posted at the workplace. Employers should keep proof of notification, because they must prove the employee’s fault in any disciplinary case.
4. Four Permissible Disciplinary Measures and Prohibited Sanctions
Labor Code 2019 prescribes an exhaustive list of four permissible disciplinary measures: (1) Reprimand; (2) Deferment of wage raise for up to 06 months; (3) Demotion; and (4) Dismissal.
Grounds for dismissal: (1) Theft, embezzlement, gambling, deliberate infliction of injury, drug use at work; (2) Disclosing business/technological secrets, infringing IP, causing severe damage, or workplace sexual harassment as defined in the ILR; (3) Repeat offenses by an employee already given a wage increment deferral or demotion, while the discipline is unspent; (4) Unauthorized absence of 05 cumulative days in 30 days or 20 cumulative days in 365 days without valid reasons.
Prohibited sanctions: (1) Infringing upon employee health, honor, or dignity; (2) Imposing fines or salary deductions in lieu of discipline; (3) Disciplining offenses not specified in the ILR or not agreed in the labor contract. Separately, the Code bars applying multiple disciplinary measures for a single offense.
Procedure and limitation period: Disciplinary hearings require at least 05 working days’ advance notice to the employee and the employee representative organization; the employee has the right to attend and defend themselves. If a notified party is absent, the employer may still hold the hearing. The general limitation period is 06 months, extendable to 12 months for offenses directly affecting finances, assets, or technological and business secrets.
5. Corporate Administrative Penalty Exposure Under Decree 283/2026/ND-CP
Non-compliance with ILR issuance, registration, or disciplinary rules triggers corporate administrative fines under Article 25 of Decree 283/2026/ND-CP (effective September 10, 2026, replacing Decree 12/2022/ND-CP; the Decree’s ranges are individual rates, doubled for organizations):
| Violation domain | Legal basis | Corporate fine (VND) | Legal remedies & Corrective orders |
|---|---|---|---|
| Failure to notify employees of, or publicly post, the ILR | Cl. 1 | 2,000,000 - 6,000,000 | None specified |
| Failure to issue written ILR (10+ workers) | Cl. 2 | 10,000,000 - 20,000,000 | None specified |
| Failure to register ILR with authority | Cl. 2 | 10,000,000 - 20,000,000 | None specified |
| Imposing fines or salary deductions | Cl. 3 | 40,000,000 - 80,000,000 | Refund of the amount collected or payment of full wages |
| Disciplining unlisted offenses | Cl. 3 | 40,000,000 - 80,000,000 | Reinstatement and wages for days off, where dismissal was imposed |
| Infringing employee dignity or health | Cl. 3(a)-(b) | 40,000,000 - 80,000,000 | For Cl. 3(a): public apology plus treatment costs and wages during treatment; none specified for (b) |
Remedies are listed in the fourth clause of that Article.
The largest exposure for FDI employers is a dismissal ruled unlawful, which is a real risk when the ILR is unregistered and not yet in effect, or when the offense appears in neither the ILR nor the labor contract. An employer that loses an unlawful termination case must reinstate the employee, pay back wages and social insurance, and pay indemnity of at least 2 months of salary. The full consequences are in the employee termination guide.
6. Strategic ILR Risk Management and Compliance Controls for FDI
To mitigate legal liabilities, foreign-invested enterprises should implement four core risk controls:
- Localize parent corporate handbooks: Never directly translate global handbooks into Vietnamese. Provisions prescribing wage deductions for tardiness or termination without cause violate Vietnamese labor law.
- Define misconduct with quantifiable precision: General phrases such as “serious misconduct” do not meet the requirement to specify violations concretely. Grounds for dismissal should be defined objectively with specific metrics and evidence standards.
- Maintain auditable proof of employee delivery: Obtain signed physical acknowledgment receipts or verified electronic acknowledgments from 100% of staff upon onboarding.
- Audit and re-register upon operational shifts: Whenever work schedules, shift rotations, or safety policies change, the company should amend the ILR, consult the employee representative organization where one exists, and confirm the procedure for the amended text with the receiving authority to protect enforceability during labor dispute litigation.
ILR provisions should align with statutory employee termination workflows and with employment contract structuring to safeguard business operations.
Strategic ILR Drafting and Labor Registration Advisory by ICLV
Indochina Link Vietnam (ICLV) delivers legal advisory for internal labor regulations and workforce compliance:
- Auditing global employee handbooks for full alignment with Vietnamese labor laws.
- Drafting bilingual ILR incorporating all nine mandatory statutory domains.
- Facilitating trade union consultations and direct liaison with the Department of Home Affairs.
- Structuring legally defensible disciplinary hearing workflows and dismissal documentation.
Contact our specialist team via email at info@indochinalink.com or explore our payroll and HR advisory services.
Legal disclaimer: This guide provides general professional context current as of October 2026. Employers should obtain qualified legal counsel for specific labor disputes.
