Labour discipline in Vietnam is deliberately narrow. Under the Labour Code 2019 an employer may use only four measures — a reprimand, deferment of a pay rise for up to six months, demotion, or dismissal — and dismissal is allowed only on specific statutory grounds. Fining employees or docking their wages as punishment is prohibited. This guide sets out each measure, the grounds for dismissal and the procedure.
Published · Last reviewed October 2026 · 9 min read · Reviewed against instruments in force
EOR Vietnam fee
US$149
per employee per month, flat, for Vietnamese nationals. No setup or hidden fees.
This is general information, not legal advice; figures are stated as of October 2026 and the law can change, so confirm the current position. A disciplinary case turns on its own facts — take advice before you act.
What are the forms of labour discipline in Vietnam?
Labour discipline in Vietnam is limited to four measures — a reprimand, deferment of a pay rise for up to six months, demotion, and dismissal. This is a closed list in the Labour Code 2019 (Art. 124): an employer cannot invent a fifth penalty.1 Fining an employee or docking wages as a disciplinary penalty is separately prohibited (Art. 127).1 Discipline can be imposed only for conduct set out in the registered internal labour regulations, following the procedure below.
The four forms of labour discipline · Labour Code 2019, Art. 124 · as of October 2026
Measure
What it is
Statutory limit
Reprimand
A formal warning on the employee's record.
The lightest measure.
Deferment of a pay rise
The scheduled salary increase is postponed.
No more than 6 months.
Demotion
Removal from a managerial position.
—
Dismissal
Termination as a disciplinary penalty.
Only on the Art. 125 grounds below.
Permitted measures
Four only — reprimand, deferment of a pay rise (≤ 6 months), demotion, dismissal.1
A closed list (Art. 125); absence trigger 5 days in 30, or 20 in 365.1
Statute of limitations
6 months, or 12 for finance, asset or secrecy cases.2
Can you fine employees or dock their wages in Vietnam?
No. Fining an employee, or deducting pay in place of a disciplinary penalty, is prohibited — and so is disciplining anyone for conduct that is not written into the internal labour regulations (Labour Code 2019, Art. 127).1 Foreign employers most often get this wrong: a “fine for lateness” policy or a wage cut to recover a shortfall is not lawful discipline.
A separate mechanism — compensation for material damage — applies where an employee negligently damages or loses the employer's property, but that is a distinct process, not a disciplinary “fine.” To shape behaviour through pay, use a lawful bonus structure rather than a penalty; see Vietnam payroll and employer costs.
On what grounds can an employee be dismissed for misconduct?
Disciplinary dismissal, the most severe measure, is allowed only on the grounds set out in the Labour Code 2019 (Art. 125), which are a closed list. An employer cannot dismiss for “poor performance” as discipline; that is the separate route of lawful unilateral termination.1
Grounds for disciplinary dismissal · Labour Code 2019, Art. 125 · as of October 2026
Ground
What it covers
Serious misconduct at work
Theft, embezzlement, gambling, deliberate infliction of injury, or drug use at the workplace.
Secrets, IP, serious damage or harassment
Disclosing business or technology secrets, infringing the employer's intellectual-property rights, acts that cause (or threaten to cause) serious damage to the employer's property or interests, or workplace sexual harassment defined in the internal labour regulations.
Repeat offence in the discipline window
Repeating conduct already penalised by deferment of a pay rise or demotion, before that penalty is cleared.
Unexcused absence
Absence without a legitimate reason for a total of 5 days within 30 days, or 20 days within 365 days.
Grounds set by Labour Code 2019, Art. 125; each must still follow the procedure below.1
What is the disciplinary procedure in Vietnam?
Discipline is valid only if the Labour Code procedure (Arts. 122–123) is followed; a sound ground applied through a defective process can still be overturned. The core steps:
Base it on the internal labour regulations
Discipline can be imposed only for conduct defined in advance in the internal labour regulations. Employers with 10 or more employees must register written regulations with the provincial labour authority.1
Act within the statute of limitations
A penalty must be imposed within 6 months of the conduct — or 12 months where it relates directly to finances, assets, or the disclosure of technology or business secrets. A protected period can extend that deadline by up to 60 days.2
Hold a disciplinary meeting
The employer must prove the fault; the grassroots employee representative organisation must take part; and the employee must be present and may defend themselves or be represented.2
Record it and issue a decision
The meeting is recorded in written minutes and a reasoned decision issued within the limitation period. Only one penalty may apply to a single act of misconduct.2
Protected periods
No discipline may be imposed while an employee is on sick leave, on agreed leave, in custody, awaiting an authority's conclusion on Art. 125 conduct, or while pregnant, on maternity leave, or raising a child under 12 months (Labour Code 2019, Art. 122).2
Discipline is not the same as unilateral termination
Disciplinary dismissal (Art. 125) is only one way an employment can end. Lawful unilateral termination — for repeated under-performance, prolonged illness, or restructuring — runs under different rules and notice periods, covered in terminating an employee in Vietnam. The difference matters for cost: an employee validly dismissed for misconduct gets no statutory severance pay, whereas most lawful terminations do. Decide early which route a case belongs to, and document it against Vietnam's labour law and contract rules.
How EOR Vietnam runs a compliant disciplinary process
When EOR Vietnam is the legal employer, the disciplinary obligation sits with us. We register internal labour regulations up front, so there is a lawful basis to act on later. If an issue arises, we confirm the ground against Art. 125, check the statute of limitations and any protected period, run the meeting with the employee representative organisation, keep the minutes and issue a reasoned decision — and we say plainly when the facts do not support dismissal, so you avoid an unlawful-dismissal claim.
This is part of the standard service. Our fee is a flat US$149 per employee per month for Vietnamese nationals — the same fee regardless of salary, seniority, role or headcount, as of October 2026; it is not a percentage of payroll. Foreign nationals who need a work permit are quoted separately. A refundable security deposit equal to two months of the employee's employment cost (gross salary plus statutory employer contributions) is held for the engagement and returned at the end, less any unpaid amounts. There are no setup, onboarding, offboarding, contract or payslip fees, and no hidden fees; salary, statutory contributions and any statutory or agreed employment payments are passed through at cost. New to the model? See what an EOR is in Vietnam, the full EOR Vietnam cost breakdown and the Vietnam HR compliance calendar, or browse all our Vietnam employer guides.
Frequently asked questions
What disciplinary measures are allowed in Vietnam?
Only four, set as a closed list in the Labour Code 2019 (Art. 124): a reprimand, deferment of a pay rise for up to six months, demotion, and dismissal. No other penalty is allowed, and a measure can be imposed only for conduct defined in the registered internal labour regulations, following the statutory procedure.
Can you fine employees in Vietnam?
No. A fine, or a wage deduction in place of a disciplinary penalty, is prohibited, as is disciplining someone for conduct not written into the internal labour regulations. A separate rule allows compensation for material damage the employee actually causes, but that is a distinct process, not a punishment fine.
On what grounds can an employee be dismissed for misconduct in Vietnam?
Only on the statutory grounds in Art. 125: serious misconduct at work (theft, embezzlement, gambling, deliberate injury or drug use); disclosure of secrets or IP infringement, acts that seriously damage the employer's property or interests, or workplace sexual harassment defined in the internal labour regulations; repeating an offence already penalised within the discipline window; or unexcused absence of 5 days in 30, or 20 days in 365.
What is the disciplinary procedure in Vietnam?
The employer must act within the statute of limitations (6 months, or 12 for finance, asset or secrecy cases), prove the fault, and hold a meeting attended by the grassroots employee representative organisation where the employee can defend themselves. The proceeding is recorded in written minutes and a reasoned decision issued.
Can you discipline an employee who is pregnant or on maternity leave?
No. Vietnamese law bars any disciplinary measure — not only dismissal — while an employee is pregnant, on maternity leave, or raising a child under 12 months old (Labour Code 2019, Art. 122). The employer may act only once the protected period ends, and the limitation period is extended by up to 60 days so a time-barred case is not lost.
How long does an employer have to impose discipline in Vietnam?
Six months from the date of the misconduct, or 12 months where the conduct relates directly to finances, assets or the disclosure of technology or business secrets (Labour Code 2019, Art. 123). Where a protected period applies, that deadline can be extended by up to 60 days. Act in time: discipline imposed late is invalid.
Sources
Labour Code No. 45/2019/QH14 — Arts. 118–121 (internal labour regulations), 124 (forms of discipline), 125 (dismissal grounds, including acts that seriously damage the employer and workplace sexual harassment defined in the internal labour regulations) and 127 (prohibited acts: fines and wage deductions). In force 1 Jan 2021. Accessed 3 Oct 2026.