The Obligation to Register Internal Labor Regulations in Vietnam and the Registration Procedure

NEXORA LAWFIRM has assisted numerous companies in drafting internal labor regulations under Vietnamese labor law and in completing the related registration procedures, supporting clients both in preventing labor dispute risk and in meeting compliance obligations. Companies employing 10 or more employees are legally required to register their internal labor regulations, and failure to do so carries penalties as well as labor dispute risk. This article is written for readers interested in topics such as "the obligation to register internal labor regulations in Vietnam," "internal regulations under Vietnamese labor law," "the format of internal labor regulations and where to file them," "the 10-employee registration threshold," and "aligning internal rules with labor dispute prevention." It explains, in clear terms, when the registration obligation arises, what documents are required, the filing process, and key practical points.

For foreign companies operating in Vietnam, establishing internal labor regulations that comply with local labor law is essential to building trust with employees and maintaining order in the workplace. In particular, Vietnamese law requires companies above a certain size to draft internal labor regulations and register them with the labor management authority — failure to do so can expose a company to penalties and legal risk.

01 - What Are Internal Labor Regulations? What Key Items Must They Legally Include?

Internal labor regulations are a set of internal rules governing working conditions and order within a company. Employers (companies) must establish them within the framework of labor law and related regulations, and must communicate them to employees.

Vietnamese law specifically sets out the key items that must be included in internal labor regulations. The main items are as follows.

Working hours and rest breaks (provisions on working hours, breaks, days off, shift work, etc.)
Workplace order (rules of conduct and standards of behavior at the workplace)
Occupational safety, health, and fire prevention (safety and health measures, fire prevention measures, use of protective equipment, etc.)
Prevention of, and response to, sexual harassment in the workplace (rules preventing sexual harassment at work and the procedure for handling any incidents)
Protection of company assets and confidential information (rules on the protection of property, trade secrets/technical secrets, and intellectual property)
Temporary reassignment of employees to duties different from those in their employment contract (the circumstances and conditions under which an employee may be temporarily transferred to another role)
Types of disciplinary violations and the corresponding forms of discipline (the categories of employee misconduct and the disciplinary measures that apply)
Employee liability for damage to property (rules on an employee's liability for damage caused to the company)
The person authorized to impose disciplinary action (who has the authority to decide on and carry out disciplinary measures)

As shown above, the internal labor regulations must include detailed provisions covering everything from working hours and leave to disciplinary action. These items are set out in Article 118 of the 2019 Labor Code and its implementing Decree No. 145/2020/ND-CP, and the content of the internal labor regulations must comply with these laws. If the regulations contain any provision that violates the law, registration will be refused (as discussed below).

02 - Must Every Company Draft and Register Internal Labor Regulations?

The obligation to draft and register internal labor regulations does not apply uniformly to every company.

Under Article 118(1) of the Labor Code, a company that regularly employs 10 or more workers must draft its internal labor regulations in writing, and these regulations must be registered with the competent labor management authority.

On the other hand, a company with fewer than 10 employees is not required to draft separate internal labor regulations; instead, working conditions, discipline, and liability for damages are expected to be addressed within the employment contract itself. That said, a company with fewer than 10 employees may still choose to establish separate internal labor regulations voluntarily, and may also voluntarily register them with the labor management authority — though even without registration, such regulations remain valid within the company.

In summary, a company with 10 or more employees must prepare its internal labor regulations in writing and register them with the labor management authority, while companies below that threshold are under no such statutory obligation. Please confirm whether your company is subject to this obligation based on the size of your workforce.

03 - The Registration Procedure for Internal Labor Regulations (4 Steps)

When registering internal labor regulations in Vietnam, the following steps apply.

04 - Administrative Penalties, Sanctions, and Risks for Failing to Register

Where the law imposes a registration obligation, a company that fails to register its internal labor regulations faces the following administrative penalties and risks.

Administrative penalties (fines): A company that is required to draft internal labor regulations but fails to do so, or that fails to register regulations it has drafted with the competent authority, is subject to a fine of VND 10,000,000 to VND 20,000,000 for each violation. In addition, failing to communicate the internal labor regulations to all employees, or failing to post their main content in a required location at the workplace, may result in a fine of VND 2,000,000 to VND 6,000,000 (Article 19(1) and (2) of Decree No. 12/2022/ND-CP).
Labor management risk: For a company subject to the registration obligation, internal labor regulations that have not completed registration are, under labor law, considered not to have taken formal effect. This means that if the company attempts to discipline an employee based on the internal labor regulations, the validity of that disciplinary action may not be legally assured. For example, even where an employee is demoted for a serious violation, if the internal labor regulations were not registered, it becomes difficult for the company to legally establish that the demotion was based on a breach of internal rules — placing the company at a disadvantage should the matter develop into a labor dispute.
Trust and compliance concerns: Failure to register internal labor regulations may be regarded as a deficiency in the company's compliance framework. Findings from an inspection or audit by the labor authorities can damage the company's reputation and lead to corrective recommendations. This is a particular concern for Japanese companies, since local employees or business partners perceiving that "a Japanese company is not complying with Vietnamese labor law" can undermine trust. Complying with local law is also important for preserving a company's social credibility.

For the reasons above, it is essential that companies with 10 or more employees draft internal labor regulations and properly complete registration with the labor authorities. Should registration have been overlooked, corrective steps should be taken promptly. Even after registration is complete, it is advisable to periodically review the content of the internal labor regulations and make any necessary amendments and re-registrations to reflect legal changes (such as amendments to the Labor Code or its implementing decrees) and actual practice. Properly establishing and operating internal labor regulations is an important foundation for clarifying the rights and obligations of both employer and employee and for preventing disputes.