Standing Commissioner cum Head of Society and Culture

under People’s Council Mai Thi Dung has a talk with

workers on her on-site survey of Labor Code implementation.

 For the first time Social Insurance files lawsuits against enterprises which fail or prolong payments of insurance debts.

 

Currently, there are tens of enterprises having social insurance debts with interest reaching tens of millions and billion VND, affecting their beneficiary employees in terms of policy.

 

Social insurance policy is to protect and maintain employees’ rights as well as social security; however, certain enterprises in Binh Duong are unaware of social insurance policy, and thus, employees are underprivileged. Disputes emerge due to the infringement of employees’ rights in cases where salary is subtracted for social insurance but enterprises intentionally ‘forget’ to pay the insurance.

 

It is expected that in July 2010, Binh Duong Social Insurance will file lawsuits against Say Fashion VN Company which fails to pay over VND 1.8 billion of insurance for 26 months by April and Made Clothing VN Co. Ltd. which fails to pay over VND 3 billion since September 2008.

 

Previously, Binh Duong Social Insurance filed lawsuits against Viet Hoa WT Plastic Co. Ltd. and Kim Chi Hung Co. Ltd.

 

The 4 companies defending lawsuits are just prominent companies being sued by Binh Duong Social Insurance.

 

In 2010, Binh Duong Social Insurance will prepare procedures for lawsuits against 16 enterprises in debt of social insurance payments despite the fact that they are advised by administrative sanction minutes from inspection teams. Those enterprises’ payments delay has influenced rights of employees, and therefore, is termed bad debts. They also disregard inspection of functional agencies by authorizing lower managing staffs to sign off commitments to pay but still they are in debts. The debts delay also influences layoff allowances.

 

The obstacles are blamed for debts. By the beginning of 2010, employees paying layoff insurance will receive their allowances upon being unemployed. Basically, agencies under Social Insurance were promptly concluding social insurance payments of employees but debts from enterprises prevented them to do so. On the other hand, only when employees are laid off could they discover that enterprises have not paid, on their behalf, for any types of insurance. As the matter of fact, they are denied by their own rights.

 

Enterprises, due to declining production and financial ability, are engaged in unwanted debts. Enterprises, which fail to pay social insurance, explain that they could not pay social insurance for seasonal employments. Meanwhile, with the pressure of employment and income, employers dare not fight.

 

Decree No. 135/2007/ND-CP stipulates highest administrative fine of social insurance violation at VND 20 million while legislative orders approved by National Assembly’s Standing Committee on April 22nd, 2008 stipulates highest administrative fine of VND 30 million. Article 138 of Social Insurance Law stipulates that criminal lawsuits should be base on severity; however, Criminal Code does not stipulate crimes involving social insurance.

 

Reported by Van Son – Translated by Vi Bao