Law on Employment (amended) - expanding the social security net, developing a modern labor market

Expanding social security net for informal workers

One of the outstanding innovations is the expansion of unemployment insurance (UI) participants towards more coverage. The draft proposes to allow workers without labor relations - often called freelance workers, informal workers - to participate in unemployment insurance on a voluntary basis.

This is an important step forward to increase the coverage of social security policies, especially in the context of informal labor still accounting for about 60% of the total labor force in the country. Creating opportunities for this group of workers to access unemployment insurance benefits will contribute to reducing risks, inequality and promoting more comprehensive security.

One issue that has received many comments is the increase in unemployment benefits. According to the current draft, employees are entitled to 60% of the average salary for 6 consecutive months, but not exceeding 5 times the regional minimum wage.

Many experts and union officials believe that the limit of 5 times the minimum wage should be abolished to properly reflect the principle of "equity - benefit" and create motivation for workers to fully participate in this policy. Adjusting the benefit level is also a way to demonstrate the superiority, fairness and sustainability of the unemployment insurance policy in the long term.

Developing a modern labor market

According to Ms. Phan Thi Hue - Vice President of the Vietnam Agricultural and Environment Trade Union - the union has had many activities to promote the development of female workers. However, although the draft law's submission stated a policy to support this group of workers, the specific content was not clearly stated. She proposed adding policies specifically for female workers - a group of subjects that are facing many barriers in accessing jobs, vocational training and career development, especially in rural areas.

Ms. Hue also said that current emulation and reward activities and training support still lack a mechanism to encourage businesses to use many female workers. Therefore, it is necessary to further specify in the draft law support policies on finance, retraining, and a woman-friendly working environment.

Ensuring gender equality is not only a requirement of domestic law but also an international commitment of Vietnam in new-generation free trade agreements such as EVFTA, CPTPP, etc.

The draft Law also focuses on improving the quality of the operation of the employment service center system, innovating consulting, job introduction activities and connecting labor supply and demand. Accordingly, the State will promote a professional and transparent employment service model, creating conditions for workers to access accurate and timely labor market information.

In particular, this amendment also clarifies some concepts such as "sustainable work", " informal work", "digital work" to ensure the law is consistent with the new context: Digital economy, green transformation, 4.0 industrial revolution. These contents are not only topical but also have the meaning of shaping the legal corridor for the modern, flexible and inclusive development of the Vietnamese labor market.

The Vietnam General Confederation of Labor - as an organization legally representing workers - has actively contributed comments, reviews and proposed many important contents in the draft. From organizing the collection of opinions from workers and union officials in both regions, to attending inspection sessions and sending official comments, the voice of the union organization has contributed to shaping the important contents of this draft law.

According to Ms. Tran Thi Thanh Ha - Head of Legal Policy and Labor Relations (VGCL), most of the opinions from the Trade Union have been absorbed and expressed by the agency in the current draft. This shows the growing role of the Trade Union in protecting and promoting the rights of workers through the legal corridor.

The draft Law on Employment (amended) is one of the legal documents with a profound impact on social life. This amendment aims to not only protect workers in the formal sector, but also expand the scope to the informal sector - the most vulnerable workers.

With important new points, the draft law is expected to become an effective legal tool in developing a modern, fair and flexible labor market, contributing to the implementation of sustainable development goals that Vietnam is aiming for in the coming period.