Workplace rules, or internal labor regulations, are documents issued by employers that set out standards of conduct, disciplinary measures, and responsibilities in labor relations. However, in practice, many businesses — especially small and medium-sized enterprises — have yet to fully recognize the importance of formally issuing and registering internal labor regulations. This creates significant legal risks, particularly when labor disputes arise or when the employer wishes to impose disciplinary actions.
1. What are internal labor regulations, and when are they mandatory?
According to Article 118 of the 2019 Labor Code of Vietnam, internal labor regulations (ILRs) are written documents issued by employers to regulate labor discipline and material responsibilities. Employers with 10 or more employees are required to have ILRs in writing, and must register them with the labor authority under the District or Provincial People’s Committee, depending on the local administrative arrangement.
Even for companies with fewer than 10 employees, it is highly advisable to issue ILRs, as they serve as an important legal basis for managing staff, handling misconduct, and protecting the employer’s lawful interests in case of disputes.
2. Legal risks when a business lacks internal labor regulations
a) Inability to lawfully discipline employees
The law strictly provides that employers may only impose disciplinary action if the misconduct is clearly defined in the registered and disseminated ILRs (Article 122 of the Labor Code). Therefore, if an enterprise has no ILRs or improperly registered ILRs, it will have no legal grounds to impose any form of labor discipline — including warnings, pay raises deferral, job reassignment, or dismissal — even if the employee has committed serious violations.
b) High risk of losing labor disputes
In labor disputes, particularly those involving termination or disciplinary dismissal, courts or labor arbitration councils typically require the employer to present the ILRs as evidence of the misconduct and justification for the disciplinary measure. Without valid ILRs, the employer is at serious risk of having their disciplinary action ruled unlawful, and may be ordered to reinstate the employee, pay back wages, and compensate for damages.
c) Lack of internal control and discipline
ILRs not only serve as a legal foundation for discipline, but also act as a tool for maintaining order, consistency, and workplace norms. Without ILRs, businesses may struggle to handle issues such as absenteeism, unauthorized use of company property, working on personal matters during office hours, violations of confidentiality, and more.
3. Key considerations when issuing internal labor regulations
To ensure ILRs are legally valid and practically effective, businesses should:
– Issue them in writing, with clear effective dates and proper signatures and stamps;
– Ensure all provisions comply with current labor laws and do not contradict the 2019 Labor Code;
– If employing 10 or more workers, register the ILRs with the local labor authority;
– Disseminate the ILRs to all employees, and obtain confirmation that employees have read or been informed of the rules (e.g., by signing an acknowledgment form);
– Periodically update the ILRs to reflect changes in laws or internal policies.
4. Conclusion
Failing to establish valid internal labor regulations can expose a business to serious legal and operational risks — from being unable to discipline employees lawfully, to losing disputes and facing financial penalties. Whether large or small, every business should treat the issuance and registration of ILRs as a core component of lawful and effective human resource management.
It is not merely a legal formality, but a practical step to protect the company’s interests, ensure transparency, and maintain order in the workplace.
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