The Employment Law aims at decent jobs for all working-age people, Nguyen Thanh Cong, deputy director of the Ha Noi Institute for Socio-economic Development Studies, tells Hai Quan (Customs)
Do you think there will be some overlap on the employment issue between other laws and the Law on Employment that will come into force next year?
Each law has its own jurisdiction, so I don't think such overlaps will occur.
The Employment Law is the institutionalisation of the State's regulations on the right to work of all citizens, particularly benefits for the people working in non-official agencies.
Viet Nam now has more than 50 million people of working age (15 plus), of which about 1.3 million are unemployed.
That's why it is imperative that the Employment Law is issued. It will help address some issues which have not been covered in any of the existing legal documents and, at the same time, meet our international integration demand. One main objective, of course, is that of having decent jobs for all working age people.
What do you think about the replacement of articles on labour accident insurance, covered in the 2006 Labour Insurance Law, with those included in the new Employment Law?
In many countries, including South Korea, Japan, Canada, Germany, Argentina and others, policies on labour accidents or employment insurance are either covered in a specific law or in the Employment Law. However, in Thailand and the USA, it is covered in the Social Insurance Law.
As we all know, the Accident Insurance Law covers only short term insurance.
Meanwhile the Social Insurance Law's main objective is to ensure pension or long term insurance that will give some other post-retirement benefits.
So moving of the accident insurance policy from the Social Insurance Law to the Employment Law makes no difference in either the fund management or payment of accident insurance.
Under the Employment Law, all employees are required to participate in the accident insurance fund. Can you elaborate?
Under the Employment Law, any employee who signs a labour contract of three to 12 months or a permanent contract is obliged to pay for the accident insurance fund.
However, under the Social Insurance Law, only people who sign a labour contract of 12 months and more will have to pay accident insurance premiums.
So the new Employment Law expands insurance coverage to many more people. It indirectly helps reduce the unemployment problem, particularly in the present context of an economic downturn.
Do you think the new law will help more people find jobs?
It depends how the law is implemented. It's too early for me to say, as it only takes effect on January 1, 2015.
A new concept, "employment service." is introduced in the Employment Law. What significance does this have for our labour market?
None. It is an old terminology. It has already been introduced in the 2012 Labour Law.
However, in the Employment Law, "employment service" covers quite a few activities, including job consultancy, employment placement, employment supply, recruitment and others.
In other words, it acts as a bridge linking the employers with the employees.
It helps job seekers find suitable employment and helps reduce unemployment in the society.
Finally it helps working age people to earn a stable income for themselves and for their families. This is a very important factor in developing a healthy society. — VNS