Lao Dong Newspaper published an article about 165 workers in Son La whose labor contracts were suddenly terminated.
Accordingly, To Hieu - Son La Agricultural Company Limited is located at sub-zone 19, Hat Lot town, the old Mai Son district (now Mai Son commune, Son La province). The predecessor of the Company was To Hieu Farm, established in 1958.
After many changes, in February 2019, the company changed its name to To Hieu - Son La Agricultural Company Limited and is currently operating under the model of a 2-member Company Limited. Of which, the Provincial People's Committee holds 70% of shares and Son La Sugarcane Joint Stock Company holds 30%.
Most of the employees here have signed indefinite-term labor contracts and are required by the Company to pay social insurance.
However, from June 1, 2025, 165 workers have had their contracts unilaterally terminated, causing many people to be upset.
In addition to signing labor contracts, the workers also signed a contract with the Company under Decree No. 01-CP dated January 4, 1995 and Decree 135/2005/ND-CP dated November 8, 2005 of the Government on the allocation of agricultural land, production forest land and land with water surface for aquaculture in state-owned farms and state-owned forestry farms.
According to Point c, Clause 1, Article 7 of Decree 01 and Point f, Clause 1, Article 9 of Decree 135, the obligation of the contracting party to pay social insurance to the contracting employee is stipulated.
At the same time, Clause 2, Article 8 of Decree 135 also stipulates: "In case the contracted party is an officer or employee, the salary is received from production through the contract and must fully implement the regulations on salary, social insurance, health insurance, labor protection and be recorded in the production cost in the contract".
On December 27, 2016, the Government issued Decree 168/2016/ND-CP replacing Decree 01, Decree 135 and effective from February 15, 2017, regulating forest, garden and water surface area contracts in special-use forest management boards, protective forests and state-owned agricultural and forestry one-member company Limited.
When Decree 168 took effect, it no longer stipulated the obligation for the contracting party (employer) to participate in social insurance for the employee receiving the contract.
Decree 168 clearly states: "If the contract recipients do not have labor contracts, the contract delivery party will not have to pay social insurance to the contract recipients as before".
The regulations are like that, but from February 2017 to May 31, 2025, the Company will still pay compulsory social insurance to employees at a rate, the Company will pay 21.5% and employees will pay 10.5%.
Mr. Nguyen Van Liem - Director of the Company said that there is still a labor contract parallel to the contract. The purpose of the labor contract is to ensure the rights of employees so that they can participate in paying compulsory social insurance.
On February 1, 2021, when Son La Social Insurance conducted an inspection and issued Conclusion No. 157/KL-BHXH on the interdisciplinary inspection of social insurance, unemployment insurance, health insurance contributions and inspected the implementation of policies and regimes at the Company. The provincial Social Insurance has recommended that the Company prepare a report for 208 employees who are product contracts that are not subject to compulsory social insurance.
The labor contracts have been signed but the parties have not complied with the regulations, cannot manage the employees, do not take payroll and do not pay monthly salaries to the employees. Therefore, employees are not eligible to pay compulsory social insurance.
Speaking to Lao Dong Newspaper, Mr. Dinh Thanh Tung - Deputy Director of Son La Provincial Social Insurance said that in reality, the termination of labor contracts for more than 160 workers of the Company has not changed their labor and production activities under the contract.
The change here is that workers will have to switch from paying compulsory social insurance to paying voluntary social insurance or participating in household health insurance.
"In fact, the labor contracts that the Company has signed are fake contracts to legalize the compulsory social insurance payment for employees. This can be considered an act of taking advantage of social insurance" - Mr. Tung said.
