Businesses avoid unemployment insurance obligations
In March 2024, for the first time, the People's Procuracy of Tuy Hoa City (Phu Yen) approved the decision to prosecute Thuan Thong Trading and Production Company Limited for the crime of evading payment of social insurance, health insurance, and unemployment insurance (SI, HI, BHTN) for employees, as prescribed in Point b, Clause 5, Article 216 of the Penal Code. The total amount of money this enterprise evaded payment from employees was more than 400 million VND. This enterprise's prolonged evasion of payment of SI, HI, and BHTN has greatly affected the rights of dozens of employees who have been with this enterprise.
Mr. Nguyen Hoan (name changed), has worked at a tourism company in Nha Trang City for nearly 30 years, since the unemployment insurance policy was introduced. However, in 2020, when the COVID-19 pandemic broke out, the company terminated the labor contract with him and many other employees. The decision to terminate the labor contract included unemployment benefits. However, he has not yet received this benefit because the company has changed owners.
These are two typical examples of businesses and units trying to avoid unemployment insurance for workers in recent times. At the meeting with voters and workers with National Assembly Deputies of Phu Yen and Ninh Thuan provinces, many workers reported that their unemployment insurance benefits were suspended due to ineffective business operations leading to dissolution, bankruptcy or business owners intentionally fleeing... Meanwhile, the Law on Employment does not have specific regulations to resolve the above issue.
Reserve fund needed for unemployment insurance
According to Ms. Huynh Thi Huyen - Chairwoman of the Trade Union of Truong Thanh ORJ Forestry Company Limited (Phu Yen), the implementation of the Law on Employment shows that if enterprises do not operate effectively, the issue of unemployment insurance for employees will be considered less important because the sanctions for handling this content are not strong enough. There are cases where enterprises deliberately do not consider unemployment benefits for employees even though every month, employees still have 1% of unemployment insurance deducted from their salary according to regulations. At a recent meeting with voters between the National Assembly delegation of Phu Yen province, voters proposed to study and develop regulations on voluntary unemployment insurance, ensuring consistency with other voluntary regimes of the Social Insurance. This will help increase the unemployment insurance fund on the one hand, and enhance the humanity of unemployment insurance in supporting employment risks and developing employment on the other hand.
According to statistics from the Khanh Hoa Provincial Employment Service Center, in the second quarter of 2024, the whole province had 4,029 people receiving unemployment benefits. The five industries registering for the most unemployment benefits were processing and manufacturing industry (23.63%), other service activities (17.52%), accommodation and catering services (12.73%), administrative activities and support services (6.30%), education and training (5.93%). The occupational groups registering for the most unemployment benefits were cleaners and domestic workers, hotel and office workers (3.43%), sales staff (3.97%), vocational teachers (4.82%), tailors and related workers (5.98%), other occupations (67.19%). Regarding the age of unemployment benefits, 69.35% of workers are from 25-40 years old, 21.27% of workers are over 40 years old, of which 53.26% of workers are female.
According to the representative of Khanh Hoa Social Insurance, the unemployment insurance policy has contributed to supporting unemployed workers to have money to ensure their lives while waiting for new jobs. However, in reality, many businesses do not comply with the regulations on compensation for workers when they lose their jobs. Therefore, it is necessary to build a reserve unemployment benefit fund, of a "special" nature, to pay unemployment benefits to workers who participate in monthly unemployment insurance but businesses avoid paying, pay late, or appropriate unemployment insurance contributions from workers...
