The Vietnam General Confederation of Labor has proposed applying many measures for enterprises delaying or evading social insurance (SI) payments including freezing violated enterprises’ accounts, publicizing their names on national portal, and prohibiting them from participating in tenders.

The delaying or evading of SI payments of enterprises will lead to the employees being unable to access insurance healthcare services or subject to reduced social welfare benefits.

According to Vietnam Social Insurance, the total SI debts owed by the enterprises reached VND22,000 billion, equivalent to 5% of the receivables.

Of which, some VND3,500 billion generated from 30,000 enterprises ceasing their business, dissolving or going bankruptcy have yet to be settled.

Statistics of the Labor Union showed that transportation and construction are the two sectors with a high number of enterprises delaying SI and salary payments.

Transportation enterprises owed roughly VND955 billion in salaries and insurance, and construction companies owed VND704 billion.

According to the Vietnam General Confederation of Labor, sanctions could be applied for those active enterprises delaying or evading SI payments. However, for the enterprises that ceased their business, dissolved or went bankruptcy, the settlement of SI is difficult as the SI is not in the list of payment priority when the authorities conduct liquidation of these inactive enterprises’ assets.

The Vietnam General Confederation of Labor, therefore, proposed the Government apply a special policy to protect legitimate rights for more than 200,000 employees whose social insurances were owed by their enterprises and strong sanctions for enterprises delaying or evading SI payments as mentioned above.

Source: Saigon Times