Penalty for businesses not paying salaries and not paying social insurance for employees

On November 28, Mr. Nguyen Duy Linh, Chief Inspector of the Department of Labor, Invalids and Social Affairs of Phu Yen province, signed a decision to administratively fine Conric Phu Yen Joint Stock Company (in Ward 4, Tuy Hoa City, Phu Yen ) VND 30 million. At the same time, the director of this company was required to pay full salary plus interest on the late salary to 21 employees (calculated according to the highest non-term deposit interest rate of commercial banks).

The reason for the penalty is that Conric Phu Yen Joint Stock Company violated Point b, Clause 2, Article 17 of Decree No. 12/2022/ND-CP dated January 17, 2022 of the Government regulating administrative sanctions in the fields of labor, social insurance, and Vietnamese workers working abroad under contracts.

Previously, many employees working at Conric Phu Yen Joint Stock Company filed a complaint with the Department of Labor, Invalids and Social Affairs of Phu Yen province about the company not paying salaries from December 2022 to March 20, 2023 and not paying social insurance for 21 employees who had signed labor contracts.

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