According to Youme Law Firm, for some reasons, many workers want to negotiate with businesses not to sign labor contracts, not to participate in social insurance, and unemployment insurance.
The 2024 Social Insurance Law has stipulated the subjects participating in compulsory social insurance, including: People working under indefinite-term labor contracts, labor contracts with fixed-term labor terms of 1 month or more, even if the employee and the employer agree under another name but have content showing that the employment is paid, salary and management, operation, supervision by one party...
If they are subjects participating in compulsory social insurance but violate regulations on compulsory social insurance and unemployment insurance contributions, employees and employers can be punished.
According to Decree 12/2022/ND-CP regulating administrative sanctions in the field of labor, social insurance, Vietnamese employees working abroad under contracts will be fined from VND 500,000 to VND 1 million for employees who negotiate with employers not to participate in compulsory social insurance, unemployment insurance, participate to the wrong subjects or participate at the wrong level.
Therefore, it is illegal for employees to agree not to pay compulsory social insurance with employers and will be punished.
