Labor break the contract, which causes enterprises to lose the market

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The percentage of employees breaking contracts is still high

Ms. Tran Thi Van Ha, Head of Information and Communication Division (Bureau of Overseas Labor Management) said that according to estimates by the Ministry of Labor, Invalids and Social Affairs, Vietnam currently has about 500,000 employees working in more than 40 countries and territories. Each year, they send about US$2 to US$2.5 billionto their country.

According to the Law on Vietnamese workers going to work abroad, there are four forms of Vietnamese people working abroad, including: Working abroad through contracts of service companies; individual contracts; enterprises winning projects abroad and enterprises sending laborers away; and workers abroad under vocational training.

Every year, more than 100,000 workers go to work abroad in these four forms. In 2018 alone, there were more than 146,000 people. Currently Taiwan (China) is still considered one of the markets with the highest Vietnamese workers. However, in recent years, the number of workers in Japan has increased significantly, surpassing workers to Taiwan (China) by65,000.

Some markets have bright spots recently in Europe, like Romania and Poland where middle-class workers can participate. Although the number of workers is only a few thousand, they are choosing to pilot with these markets. In particular, we are very cautiousto avoid breaking contracts to affect this potential labor market.

Although the number of overseas workers has increased rapidly, the proportion of Vietnamese workers breaking contracts remains high. For example, the Taiwan market (China) currently has over 22,000 illegal workers, while in South Korea, there are about 15,000.

“The reason is related to high fees; working conditions, many centers recruit people through intermediaries, so they do not announce specific information, details about the environment and working conditions. Therefore, workers feel frustratedwhen working and try to escape. Besides,the workers had the opportunity to find another job with better income, so theyescape. Many cases were arrested and deported,”Ms. Ha added.

For the Japanese market, according to Ms. Tran Thi Van Ha, the number of workersescaping also increased. In 2016, more than 2,000 workers escaped, nearly 5,500 workersleft and violated the lawin 2018.

The cause of workers escaping is that there are many strict regulations in Japan. Besides, our international students go to school butactually go to work through many other forms.

Currently Vietnam has about 500,000 employees working in more than 40 countries and territories around the world. Photo: Internet.

Implement cost reduction measures

From the perspective of an enterprise operating in the field of labor export, Mr. Le Nhat Tan, Deputy General Director of LOD Company, emphasized that many people believed that Vietnamese workers broketheir contracts towork outside because of highcosts, but from an enterprise perspective, he thought that there were programs without high fees, such as programs implemented by the Ministry of Labor, Invalids and Social Affairs.In addition,the escaping labor rate was high because workers believed that could not come back when they were familiar withthe working environment in that country, familiar with culture, customs, climate and high income. And they could not work with such a high income when they came back. Although there was a percentage of breaking the labor contract because of the high service cost, but it was not so with LOD.

Speakingabout the consequences enterprises suffer due to the workers escaping, Mr. Le Nhat Tan said that escaping labor caused loss of reputation forenterprises and enterprises violated contracts with partners. Meanwhile, the prevention of escaped labor is the highest provision that enterprises must assure partners.This is also what makes the enterprises concerned,because both their reputation and financial results would be impacted.

“Because of the escapes, our market will not be sustainable. Because it is very difficult for enterprises to sign contracts to send workers abroad, but it is very difficultfor the people who come after, even the enterprises lose the entire contract, close the market such as Taiwan and South Koreawhen the labor escaped the contract,”said Mr. Le Nhat Tan.

In order to minimize escaping workers, the Bureau of Overseas Labor Management has asked enterprises to tighten the training and selection process. In the future, in the Law on sending Vietnamese workers to work abroad (amended), the Bureau allows labor export enterprises to associate with vocational schools to recruit skilled workers. In addition, specific notice will be given to each enterprise, the units with a high rate of illegal labor will be subject to stronger sanctions.

Vietnam realizes international labor standards Ratifying and following international labor standards has become increasingly important to improving Vietnam’s competitive edge.

At the same time, it will tighten the tasks, selection process, training of sending enterprises, minimize administrative procedures forenterprisesin accordance with the laws of Vietnam,the laws of the host country and international conventions.Thereby, efforts will be made to reduce the cost of servicesby strengthening the legal framework to ensure the benefits for workers and the sending enterprises. This law is expected to be passed by the National Assembly in 2020.