Question: Can an employer force an employee to perform a labor contract to repay debt? How is the act of forcing an employee to perform a labor contract to pay off debt?

Reply:

Labor contract?

- A labor contract is an agreement between an employee and an employer regarding paid employment, wages, working conditions, rights and obligations of each party in the labor relationship.

In case the two parties agree by a different name but with content expressing the paid employment, salary and management, administration and supervision of one party, it is considered a labor contract.

- Before accepting employees to work, the employer must enter into a labor contract with the employee. (Article 13, Labor Code 2019)

Can employees be forced to perform labor contracts to repay debt?

According to Article 17, the 2019 Labor Code stipulates the following actions that employers cannot do when concluding and implementing labor contracts:

- Keep original copies of identification documents, diplomas, and certificates of employees.

- Require employees to provide security measures in money or other assets for the performance of the labor contract.

- Forcing employees to execute labor contracts to repay debts to employers.

Thus, according to the above regulations, employers are not allowed to force employees to perform labor contracts to pay their debts.

How to punish the act of forcing employees to perform labor contracts to repay debt?

A fine of between VND 50,000,000 and VND 75,000,000 shall be imposed on employers who commit one of the following acts:

- Forced labor or mistreatment of workers but not to the extent of criminal prosecution;

- Forcing employees to execute labor contracts to repay debts to employers.

Thus, employers who force employees to perform contracts to pay their debts may be fined from 50,000,000 VND to 75,000,000 VND.

Note: The above fine is the fine for individuals. The fine for organizations is 2 times the fine for individuals. (Clause 1, Article 6, Decree No. 12/2022/ND-CP). (Clause 4, Article 11, Decree No. 12/2022/ND-CP)

What information must businesses and employees provide when concluding a labor contract?

Pursuant to the provisions of Article 16, Labor Code 2019, businesses and employees need to provide the following corresponding information when concluding a labor contract:

- Employers must provide truthful information to employees about work, work location, working conditions, working hours, rest hours, safety, occupational hygiene, and wages. salary, payment methods, social insurance, health insurance, unemployment insurance, regulations on protecting business secrets, protecting technological secrets and other issues directly related to the contract labor contract requested by the employee.

- Employees must provide truthful information to the employer about full name, date of birth, gender, place of residence, education level, vocational skill level, and confirm health status. and other issues directly related to the conclusion of the labor contract requested by the employer.