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Some enterprises said that the regulation on compulsory insurance for shorterm laborers from 1 to less than 3 months will cause difficulty for enterprises, especially in the use of laborers. Photo: Huong Diu

Laborers afraid to "bind"

According to the provisions of the Law on Social Insurance of 2014, from January 1 of 2018, the regulations related to social insurance have had many changes, including the content of people who working under labor contracts with a term from 1 full month to less than 3 months are also compulsory for social insurance. In case the employee terminates the contract within the above time limit, employers will be permitted to sign new term contracts, but only one signing is allowed. After that, if the employee continues to work, they must sign a labor contract with an indefinite term.

Many businesses said that the habit of workers is that they are willing to "jump jobs" immediately to another company where there are higher salaries and favorable incentives, this trend is increasingly popular. Therefore, seasonal workers themselves do not want to be bound when the enterprise asks them to sign a labor contract. In fact, in many businesses, the dropout rate of seasonal laborers with 1-3 months contracts is very high. The employer has not yet issued the insurance book, the laborer had already "jump job", so many businesses are having difficulty paying social insurance for workers because they do not know where to find workers to pay.

According to Nguyen Truong Son, Director of Truong Hai Construction Company, as a construction company, the place of work depends on the contract so that hiring seasonal workers is unavoidable, even if there is a period of time, outsourced employment accounts for ½ of the company's main labor force. Most of these laborers are farmers from the countryside who spend their free time working as construction workers, so they only want to receive full salary rather than a subsidy or social insurance.

With the production enterprises, at the end of the year, hiring seasonal workers to produce goods is a frequent occurrence, however, according to Ms. Nguyen Thi Hong Gam, Head of professional production of Thanh Phat Production and Service Co., Ltd, casual workers have to learn from 2 to 5 weeks to be able to take on the job, many workers do not have the desire to pay social insurance because they do not want to be bound, enterprises also have difficulty in resolving contracts with these workers.

Shorten the process for enterprises

Mr. Tran Dinh Lieu, Deputy General Director of Vietnam Social Insurance, said that the above regulations will help this group of laborers to participate in social insurance, to be assisted when risks of illness, labor accidents, occupational diseases, pregnancy, and loss of job occur. However, there are employers who are afraid that the payment of social insurance for 1-3 months, workers will cause enterprises to be in "trouble" because this unstable labor force often shift jobs, especially to seasonal production enterprises who employ many short-term laborers. In order to solve the above difficulties, for the implementation, social insurance has modernized management facilities to implement the professional process of issuing books, cards, and benefit payments for workers.

"According to the spirit of administrative reform, we have shortened the time for issuing books and cards for new participants. The law stipulates a time limit of 20 days, but we have shortened to only 7 days with new participants. For those participants who already had social insurance books and number, they can take out insurance anywhere with the electronic registration, it takes only 2 days, even in a day," said Tran Dinh Lieu.

He also added, many previous works that have been done by the employer are now transferred to social insurance, including receiving, filing and policy responses. The public service unit is the post office that will directly come and collect records. Returning records, books, cards are also in the place; The employer does not have to go to the social insurance agency or pay fees. Social insurance books are also directly returned to employees.

Vietnam’s textile and garment industry still has a long way to catch up with other countries

In addition, Vietnam social insurance is reviewing additional information of participants to grant social insurance number, to complete the issuance of social insurance cards by 2020, completely replace the paper health insurance card and social insurance as today. This agency is striving to reach the goal of synchronizing and matching 70% of social insurance codes for participants nationwide. Then printing, issuing social insurance, health insurance card by the identification number.