Enhancing Employment Security: Proposed Changes to Vietnam’s Labor Laws

By Thuy Nguyen

Vietnam’s Ministry of Labor, Invalids, and Social Affairs (MOLISA) has proposed significant amendments to the country’s labor laws to bolster employment security and adapt to evolving economic landscapes.

Expanding Coverage under Unemployment Insurance Scheme

One cornerstone of the proposed amendments is the expansion of coverage under the unemployment insurance scheme. New employee groups, such as those with contracts lasting a month or longer, part-time workers earning at least half of the highest regional minimum wage, and salaried managers and supervisors, will now be obligated to participate.

Introducing Flexible Premium Payment System

The proposed changes include the introduction of a flexible premium payment system. Under this system, both employers and employees will have a maximum contribution rate of 1%. Moreover, there is potential for state support to augment employer contributions, depending on prevailing economic conditions.

Enhancing Benefits for Workers

Another significant aspect of the proposed amendments is the enhancement of benefits for workers. The amendments advocate for the utilization of the Unemployment Insurance Fund to finance training programs for employees. This initiative aims to empower workers with additional skills and support employers in up-skilling their workforce.

Provisions for Crisis Support

In times of economic crises, natural disasters, or public health emergencies, the proposed amendments offer provisions for crisis support. This includes providing cash assistance and additional aid for unemployment insurance payments, demonstrating the government’s commitment to safeguarding workers’ interests during tumultuous times.

Incentives for Overseas Employment

Recognising the importance of overseas employment opportunities, the proposed changes introduce incentives for workers seeking employment abroad. Eligible groups, such as ethnic minorities, individuals from low-income households, veterans, and young people with military or volunteer service, may receive preferential loans to facilitate overseas employment.

Conclusion

The proposed amendments represent a fundamental shift in Vietnam’s labor laws, aimed at enhancing employment security and fostering a resilient and inclusive workforce. As these amendments undergo deliberation by the National Assembly, it’s essential to recognise their significance in modernising Vietnam’s labor laws and promoting a conducive environment for both employers and employees.

How 360 Business Law Can Help

360 Business Law offers expert legal guidance to navigate these proposed amendments effectively. Our team ensures compliance with the evolving labor laws and assists in fostering a resilient workforce amidst changing economic landscapes.