Many problems in unemployment benefits policy

(Baonghean)Due to the impact of the economic recession, many businesses are operating inefficiently, causing the unemployment rate to increase. Although it is considered a humane policy, with the meaning of ensuring social security, the unemployment insurance policy still has many problems.

One day in early October, we were at the Nghe An Job Introduction Center and witnessed dozens of workers waiting to complete procedures to receive unemployment insurance benefits. Ms. Le Thi Thuong, from Thanh Huong (Thanh Chuong) said: “After 3 years of working as a garment worker, then a leather shoe worker in Tan Phu (Ho Chi Minh City), due to production and business difficulties, few orders left us jobless. In August 2012, we lost our jobs, and my husband and I returned to our hometown with our small child, so life was very difficult. With the time and level of unemployment insurance contributions, I received a 3-month subsidy of more than 900,000 VND/month. Although the amount is not much, it helps us to reduce difficulties and stabilize our lives soon.”



Workers come to apply for unemployment benefits at Nghe An Employment Service Center.

According to statistics from the Employment Introduction Center, in Nghe An, the number of workers with unemployment benefit decisions mainly transferred from industrial zones in the South and the North. In 2011 alone, among more than 3,900 people with unemployment benefit decisions, the number transferred from other localities was over 3,300 people, with a total benefit payment of over 13.4 billion VND and 3,865 unemployed workers were consulted and introduced to jobs. From the beginning of 2012 to now, 4,329 people have registered to submit documents, 4,253 people have payment decisions with a total amount of over 26 billion VND. Currently, many businesses in the province are facing difficulties, the number of unemployed workers continues to increase. Nghe An Seafood Import-Export Joint Stock Company declared bankruptcy in 2011, up to now, more than 100 people have come to apply for unemployment. At Matrik Company (Bac Vinh Industrial Park) and Cau Duoc Cement and Materials Joint Stock Company, the number of unemployed workers coming to fill out paperwork is also increasing rapidly.

Ms. Lam Thi Que - Head of Unemployment Insurance Department said: This is a new policy, starting to pay unemployment insurance in 2009, and paying in 2010, so many businesses are still confused, not following well the payment of unemployment insurance and initial guidance for employees. The closing of social insurance books when employees terminate their contracts of some businesses is still slow, including foreign employers, directly affecting the progress of employees' application submission. In addition, many unemployed workers do not fully understand their rights, so they are afraid to register for consultation, job referral, and vocational training support because they are afraid of having their benefits and time deducted.

In particular, there are many cases where businesses create favorable conditions but workers are indifferent. Ms. Nguyen Thi Thu Ha - Chief Accountant of Nghe An Traffic Construction and Consulting Joint Stock Company said that the company currently has nearly 140 employees, and the company pays 8.7 million VND for unemployment insurance each month. Currently, there are 11 people who are using the labor contract termination policy to receive unemployment insurance. However, in general, employees are not interested in this policy. According to Ms. Ha, private enterprises are "enthusiastic" about this policy to both enjoy unemployment insurance and not have to pay social insurance, but for state-owned enterprises, especially for employees with many years of service, they are very reluctant to have to make a file because they are entitled to this policy at the same time as terminating their labor contracts. Many cases have an application but then withdraw it, accept unpaid leave rather than make a file to receive unemployment insurance.

In addition, many workers when registering for unemployment only find out that the company did not pay any insurance for them. Some businesses pay unemployment insurance but because of social insurance arrears, the insurance agency cannot close the books, which also greatly affects the unemployment benefits of workers.

Faced with that inadequacy, implementing the decision of the Provincial People's Committee, the interdisciplinary team chaired by the Social Insurance Agency inspected 120 enterprises. Through the inspection, many limitations were revealed. The Central Construction and Consulting Joint Stock Company had 6 employees who signed contracts since 2011, showing the payroll and timesheets, but up to the time of the inspection, the team had not yet deducted social insurance, health insurance, and unemployment insurance for the employees. Hong Dao Company Limited (Quynh Luu) through checking the payroll list from January 2012 to July 2012, the unit continuously paid salaries to 128 employees but only deducted social insurance, health insurance, and unemployment insurance for 68 employees, the unit had not yet deducted the remaining 63 employees. "To resolve these shortcomings, recently, three agencies, the Department of Labor, Invalids and Social Affairs, the Provincial Social Insurance and the Provincial Labor Federation, sat down together and signed a coordination program to jointly resolve difficulties for workers, including the issue of unemployment insurance...

Faced with current shortcomings, in the recent Draft Law on Employment, the Government has proposed implementing employment insurance to replace current unemployment insurance. The scope of this draft law covers "employment in the formal and informal sectors; employment of freelance workers and self-employed workers; domestic and foreign employment" to achieve the goal of promoting and ensuring employment for workers, supporting unemployed workers to find jobs soon. The draft law stipulates that employment insurance includes two regimes: one is the regime for unemployed people like the current unemployment insurance policy; the other is to supplement the regime to support employers to maintain employment, prevent and limit unemployment.

Thu Huyen