VietNamNet Bridge – Regulations on labour outsourcing have been included for the first time in the second draft of the Labour Code in a bid to protect employees' rights, according to the Ministry of Labour, Invalids and Social Affairs.

With the rapid development of labour outsourcing in the domestic market, the ratification of regulations were urgently needed, said Dang Duc San, director of the ministry's Department of Legislation.

"Labour outsourcing is a new and complicated issue, requiring careful discussion before being put into practice," San said.

The second draft of the Labour Code states that worker outsourcing is in fact a sublease agreement and the employee still had a direct relationship with the original employer.

According to the Department of Legislation's report, labour outsourcing services have been regulated in Viet Nam for the last 10 years. The practice is particularly popular in the southern part of the country.

There are 59 enterprises operating in the outsourcing sector in HCM City, 51 in Binh Duong and 20 in Dong Nai provinces.

Labour outsourcing mainly supplies staff for seasonal work, and typically involves accountants, marketing staff, security guards, babysitters, translators and labourers.

However, up to now, enterprises operating in the labour outsourcing sector have not been regulated by the State resulting in numerous labour disputes.

Nguyen Duy Hung, director of the legal consultancy firm the IPIC Group, said five articles on labour outsourcing had been included in the second draft of the Labour Code.

Meanwhile, Nguyen Xuan Thu from the Ha Noi University of Law, said the legal adjustments would protect employees' rights.

He added that it was imperative the law harmonised relations among labourers, labour outsourcing enterprises and the employers to avoid worker disputes.

Outsourcing enterprises must meet their legal responsibilities, he said.

According to Mai Duc Thien, manager of HCM City's Department of Labour, Invalids and Social Affairs, four major labour disputes relating to labour outsourcing occurred in the city in 2010. They chiefly involved wages, bonuses and insurance.

Disputes often concerned foreign direct investment enterprises that had only signed a labour supply contract with outsourcing firms, he said.

According to Nguyen Van The, deputy director of HCM City's Department of Labour, Invalids and Social Affairs, the amendments to the Labour Code will ensure the better management of the labour outsourcing market.

The second draft Labour Code will be debated by the National Assembly this year.

VietNamNet/Viet Nam News