Year-end labor reports required for businesses in Vietnam

Year-end labor reports required for businesses: Which ones must be submitted and by when? What are the exact deadlines? Let’s find out with terra in the article below.

The role of year-end labor reports required for businesses in legal compliance

Submitting labor reports is a mandatory obligation for all businesses and organizations that employ workers in Vietnam. Complying with these year-end labor reports is essential not only for effective human resource management but also for ensuring employee rights are protected.

Below are the key reasons explaining the importance of submitting labor reports:

• Effective labor management: These reports provide a comprehensive overview of workforce data, including employee headcount, hiring and resignation trends, salaries, and benefits. This helps authorities understand the current labor situation and make appropriate policy adjustments to stabilize the labor market.
• Avoiding legal risks: Late submissions or failure to comply with labor report regulations may result in administrative fines during inspections, negatively affecting business finances and operations.
• Maintaining business credibility: Complying with labor report requirements demonstrates responsibility and reinforces the professionalism of the business. This helps build trust with partners and clients while protecting the company’s reputation in the marketplace.
• Preventing risks during internal audits: For FDI companies, accurately submitting year-end labor reports ensures compliance with Vietnamese regulations and reduces potential risks during internal audits by the parent company or corporate group. Any discrepancies can lead to internal warnings, penalties, and harm the credibility of the HR department.

Which businesses are subject to year-end labor reports required for businesses?

According to Decree 35/2022/NĐ-CP, all businesses, regardless of size, industry, or type of ownership are required to submit labor reports. The following types of businesses must comply with this regulation:

• State-owned enterprises: For example, major corporations such as Vietnam Electricity (EVN) or Vietnam Posts and Telecommunications Group (VNPT).
• Private businesses: Including small-scale retail stores, workshops, and other privately owned establishments.
• Limited liability companies (LLCs): This applies to both single-member LLCs and multi-member LLCs.
• Joint-stock companies: Such as commercial banks and publicly listed companies on the stock exchange.
• Foreign-invested enterprises: Including joint ventures and companies with 100% foreign capital.
• Businesses operating in specialized sectors: for example, construction firms, mining companies, food processing factories, etc.

Notably, even businesses with fewer than 10 employees are not exempt from the obligation to submit labor reports. This regulation ensures that all companies, regardless of size, comply with labor laws and uphold their responsibility to protect employee rights.

Which year-end labor reports are required for businesses?

In most cases, the deadline for submitting labor reports falls either mid-year or year-end, depending on how frequently each report is required. Below are the labor reports that businesses must submit at the end of the year:

Labor utilization report

Report on the employment of foreign workers

Summary report on occupational accidents

Report on unemployment insurance participation

Report on occupational safety and hygiene

Report on training in occupational safety and hygiene

Report on the recruitment and management of Vietnamese workers (For foreign organizations or individuals in Vietnam)

Risks of late submission of end of year labor reports

At the end of the year, businesses often face a heavy workload and tight deadlines, which increases the risk of forgetting or omitting required labor reports. This can lead to serious consequences, including:

Risk of administrative penalties

Failing to submit labor reports on time can expose businesses to penalties from labor inspection authorities. The fines vary depending on the severity of the violation, potentially resulting in unnecessary financial losses.

Damage to business reputation

Submitting labor reports on time demonstrates a business’s transparency and compliance with the law. This helps maintain a trustworthy image, builds confidence among partners and investors, and creates a strong foundation for future business expansion.

Disruption to business operations

Mistakes or delays in submitting end of year labor reports require companies to allocate extra resources for corrections, which can disrupt operations and reduce efficiency. Businesses may also face requests to resubmit incomplete reports or incur additional penalties, adding undue pressure.

Facing labor inspections

Labor inspectors regularly assess compliance with legal regulations, including labor report submissions. Common types of inspections include:

• Scheduled inspections: These are typically announced in advance, giving businesses time to prepare and ensure all required documents are in order.
• Unscheduled inspections: These happen unexpectedly, often triggered by employee complaints or signs of legal violations. This type of risk is unpredictable and demands that businesses remain compliant at all times.

To avoid these risks, companies must proactively comply with regulations and submit labor reports on time – especially at year-end, when several key reports are due.

By ensuring full compliance, businesses not only protect themselves from legal consequences but also strengthen their reputation in the market. To give HR teams peace of mind and allow them to focus on strategic priorities, companies may consider using terra’s labor reporting service.

A fast and accurate labor reporting service for businesses

Fulfilling labor reporting requirements accurately and on time can be a challenge for many businesses. To address this issue, Terra offers a professional labor reporting service that helps companies save time, minimize risks, and stay focused on their core operations.

By choosing terra’s labor reporting service, your business is guaranteed to receive:

• End-to-end handling of all required labor reports, ensuring nothing is missed or delayed

• Accurate, compliant submissions aligned with current legal regulations—minimizing the risk of penalties

• Dedicated consulting and responsive support, helping your HR team stay informed and on track without disruptions