Vietnamese Lawmaker Proposes Using Missing Labor Leasing Firms’ Deposits to Pay Unpaid Wages
As Vietnam’s National Assembly reviewed proposed Labor Code amendments, a lawmaker called for provincial labor authorities to be empowered to urgently release the bank deposits of missing labor leasing firms to pay workers’ wages and social insurance. Lawmakers also discussed liability for hiring firms and proposed new paid holidays.
On November 9, Vietnam’s National Assembly discussed draft amendments to the Labor Code and other laws. Addressing the risk of unpaid wages and social insurance contributions when labor leasing firms become unreachable, Nguyễn Tiến Nam, a National Assembly deputy from Huế, proposed empowering provincial labor authorities to order the urgent release of bank deposits to pay workers’ wages and social insurance. The measure remains a lawmaker’s proposal.
Nguyễn Tiến Nam, a National Assembly deputy from Huế, attends the discussion.（VietVance）
Nguyễn Tiến Nam said the deposits are held in commercial banks and remain frozen. If a firm becomes unreachable and the law gives local authorities no emergency powers, banks may refuse to release the funds because of restrictions under the Law on Credit Institutions. He also proposed that, if a labor leasing firm fails to meet its notification or deposit obligations, the leasing contract should automatically become void and the workers should enter into a direct employment relationship with the hiring company. He called for the hiring company’s joint liability for payments to be clearly defined.
Lâm Văn Đoan, a National Assembly deputy from Lâm Đồng, said the draft would shift oversight of labor leasing from licensing to activity notification, a deposit of VND 2 billion and oversight after operations begin, but that its risk controls and worker protections still need improvement. He proposed a database of labor leasing firms and leased workers, with deposits set and adjusted according to company size and risk. A mechanism to ensure payment obligations are met would also be needed when a deposit is insufficient.
Lâm Văn Đoan, a National Assembly deputy from Lâm Đồng, speaks.（VietVance）
On paid leave, the draft proposes making November 24, “Vietnam Culture Day,” a holiday. Nguyễn Sỹ Hội, a National Assembly deputy from Nghệ An, proposed considering July 27, War Invalids and Martyrs Day, as a paid holiday as well. Lưu Thị Thúy Hằng, a deputy from Phú Thọ, cautioned that an additional holiday would affect companies’ production schedules, business operations and costs. She called for clear rules on annual holiday schedules, work arrangements in essential sectors and compensatory leave.
Nguyễn Sỹ Hội, a National Assembly deputy from Nghệ An, attends the discussion.（VietVance）
Source: VietVance
