Proposal to establish a contingency fund for enterprises owing social insurance to pay employees

Kiều Vũ |

Hanoi - The content of the health recovery regime for workers in places without trade union organizations has received many opinions.

On April 7-8, the Vietnam General Confederation of Labor (VGCL) organized a social criticism conference on the Law amending and supplementing a number of articles of the Law on Social Insurance (BHXH).

Speaking at the conference, Mr. Ngo Duy Hieu - Standing Deputy Secretary of the Party Committee, Vice President of the Vietnam General Confederation of Labor (VGCL) - chairing the conference - emphasized that the Law on Social Insurance contributes to ensuring social security, improving the lives of workers while working and when retiring, so there need to be specific regulations.

Phó Chủ tịch Tổng LĐLĐVN Ngọ Duy Hiểu phát biểu khai mạc Hội nghị. Ảnh: Phương Mai
Vice President of the Vietnam General Confederation of Labour Ngo Duy Hieu delivered the opening speech at the conference. Photo: Phuong Mai

According to Mr. Nguyen Duy Cuong - Deputy Director of the Salary and Social Insurance Department, Ministry of Home Affairs, in 2024, the law has been amended, but currently the functions, tasks, and powers of state management agencies and organizations implementing social insurance policies have changed a lot, and the new local government organization model no longer has intermediate levels. Therefore, it is necessary to amend and supplement the regulations in the Law on Social Insurance No. 41/2024/QH15 to be appropriate.

Ông Nguyễn Duy Cường - Phó cục trưởng Cục tiền lương và BHXH, Bộ Nội vụ. Ảnh: Phương Mai
Mr. Nguyen Duy Cuong - Deputy Director of the Department of Salary and Social Insurance, Ministry of Home Affairs. Photo: Phuong Mai

Delegates focused on giving opinions on regulations on the position, role, responsibility, and powers of social insurance agencies in the draft amended and supplemented Law to meet the requirements of improving the quality of state management and organizing the implementation of social insurance policies; Regulations on the role, rights, and responsibilities of trade union organizations in the draft amended and supplemented Law to ensure conformity with the new context and situation; The amendment of specialized inspection and examination of social insurance in the draft Law; The addition of regulations on the Social Insurance Fund being allowed to deposit money at joint-stock commercial banks with state capital and state-owned enterprise capital from 50% or more of charter capital in the draft amended and supplemented Law.

In the content of the rebuttal, Prof. Dr. Le Minh Thong - former Deputy Chairman of the National Assembly's Law Committee - analyzed: Currently, social insurance is under the Ministry of Finance (not under the Government as before), so it is necessary to specifically stipulate the position of social insurance to clarify the relationship of social insurance with the Ministry of Finance, with contributors and beneficiaries of social insurance policies as well as clearly define the operating principles of social insurance. Social insurance is a public service provider, managing the Social Insurance Fund, if the position is not clearly defined, it will be very difficult to operate.

Regarding the composition of the Fund Management Council, Prof. Dr. Le Minh Thong proposed to clarify the relationship between the Social Insurance Fund Council and the Ministry of Finance; the level of independence of the Social Insurance Fund Council; and the responsibilities of each member of the Council.

GS.TS Lê Minh Thông – Nguyên phó chủ nhiệm Ủy ban pháp luật của Quốc hội. Ảnh: Phương Mai
Prof. Dr. Le Minh Thong - Former Deputy Chairman of the National Assembly's Law Committee. Photo: Phuong Mai

To be consistent with the model of organizing activities without trade unions of agencies and armed forces, the draft amended Law stipulates in Clause 2, Article 46 and Clause 2, Article 60 (health recovery regime after illness and health recovery after maternity) in the direction: In case the employer unit does not have a grassroots trade union (including cases where there is no grassroots trade union), it is decided by the employer.

Regarding this content, Prof. Dr. Le Minh Thong said that it is necessary to more clearly stipulate the conditions under which employers have the right to decide. First of all, it is necessary to stipulate based on the employee's request to decide and based on medical records. Only then can a safer mechanism be created for employees because employees are always at a disadvantage.

At the conference, Ms. Nguyen Dieu Hong - an independent expert - suggested that if Vietnam Social Security is in the Ministry of Finance, it also needs to have corresponding 2 levels in the local government. Besides, from a technical perspective, Ms. Hong analyzed international practices, the Social Insurance Fund must always be safe; profitable (because it must preserve value to pay for 30 years later); easily liquidated; bring economic and social benefits. Here, the issue of safety comes with 3 factors behind. In Vietnam, it is only safe, sustainable, and effective (must bring benefits to the community, easily liquidated).

Therefore, Ms. Hong expressed concern when the draft Law supplements the regulation e to Clause 1, Article 122 in the direction that the Social Insurance Fund is allowed to deposit money at joint-stock commercial banks with state capital and state-owned enterprise capital from 50% or more of charter capital, ensuring conditions according to the Government's regulations. Because, according to Ms. Hong, encouraging investment and increasing the value of the Fund must be safe.

Bà Nguyễn Diệu Hồng – chuyên gia độc lập. Ảnh: Phương Mai
Ms. Nguyen Dieu Hong - independent expert. Photo: Phuong Mai

From practical activities, Trade Union officials gave opinions on the role of members in the Management Council of the Social Insurance Fund, the rights of employees when participating in social insurance, the relationship between regional social insurance and local People's Committees...

In which, Mr. Do Van Thuc - Deputy Head of the Trade Union Affairs Committee of Hai Phong City Labor Federation - stated the reality that many workers participate in social insurance, and when they complete procedures to enjoy benefits, they only know that the business is owing social insurance, leading to the situation that they cannot retire and are not entitled to benefits.

Mr. Thuc proposed establishing a contingency fund or using fines for businesses owing social insurance to pay employees.

Ông Đỗ Văn Thức -  phó trưởng ban Công tác Công đoàn LĐLĐ Thành phố Hải Phòng. Ảnh: Phương Mai
Mr. Do Van Thuc - Deputy Head of the Trade Union Affairs Committee of Hai Phong City Labor Federation. Photo: Phuong Mai

Mr. Vu Anh Tuan - Vice Chairman of the Vietnam Medical Union, said that if you want to make a profit, you must invest, and investing must accept risks, so it is necessary to consider the direction of the Social Insurance Fund being allowed to deposit money at joint-stock commercial banks with state capital and state-owned enterprise capital from 50% or more of charter capital to ensure conditions according to the Government's regulations.

Regarding Clause 2, Article 46 and Clause 2, Article 60 of the draft revised Law on health recovery regimes after illness and health recovery after maternity, Mr. Tuan suggested that it should be clearly stated that for places without trade union organizations, it should be implemented according to the provisions of law and the request of employees.

Ông Vũ Anh Tuấn – Phó Chủ tịch Công đoàn Y tế VN. Ảnh: Phương Mai
Mr. Vu Anh Tuan - Vice Chairman of the Vietnam Medical Union. Photo: Phuong Mai
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