Expanding "lifelines" for workers

My cousin, Ms. Vân, just received her 12th month of unemployment benefits after more than a year of being unemployed from the company where she had worked for 14 years.

Working as a factory worker is hard work; standing in the factory all day, she comes home exhausted, but my aunt persevered in her career instead of "jumping around" like many others. She said that throughout her youth, from before she got married until she got married and had children, she worked as a factory worker in just one place.

When she first came to the city, she knew nothing about the labor laws and policies. "Getting a job was a blessing," she said, adding that having a monthly salary to cover living expenses, saving up for her children's education, sending some gifts to both sets of parents, and then returning home for Tet (Lunar New Year) looking fair-skinned and plump so that her neighbors could see, "Looks like life in the city is pretty good, huh?"

Through her work experience, observing people leaving and others joining, she gradually grasped the benefits of signing employment contracts and the accompanying support policies. She understood the value of the monthly insurance contributions that both employees and employers are required to make according to law.

Workers at a garment factory in Hai Duong (Illustrative photo: Tien Tuan)

The woman, now in her 40s, can readily explain social insurance regulations and unemployment benefits. "I'm not very literate, but I try my best to understand the regulations regarding workers' rights. If I work hard in the garment factory and don't know about these benefits, it's my fault," she expressed. Of course, a conscientious HR department will guide employees when they leave, but "it's always better to proactively find out."

A few days ago, she sent me a link to an article about a proposal to expand the scope of unemployment insurance coverage, which suggests that workers with fixed-term employment contracts of one month or more (currently three months or more) will also be eligible for unemployment insurance.

"If this policy is approved, it would be great, because now that I'm older, it's very difficult to find a job. Sometimes I only get contracts for a month or more and have to switch jobs frequently," she texted me.

I read the article and did some further research, learning that this content is part of the draft Law on Employment (amended) submitted to the National Assembly for consideration at the current session. This draft law includes several major amendments and additions, such as: Policy Group 1 on flexible, efficient, modern, sustainable, and integrated labor market governance; Policy Group 2 on improving unemployment insurance policies as a tool for labor market governance; Policy Group 3 on developing vocational skills and improving the quality of human resources; and Policy Group 4 on promoting sustainable job creation.

The issue my aunt is concerned about falls under policy group 2. The draft law proposes expanding the scope of unemployment insurance coverage to include: (i) employees with fixed-term employment contracts of 1 month or more; (ii) part-time workers whose monthly salary is equal to or higher than the lowest mandatory social insurance contribution base salary, ensuring consistency with the 2024 Social Insurance Law. Along with this, the draft law also stipulates flexible unemployment insurance contribution rates and amends unemployment insurance schemes.

A few years ago, I received unemployment benefits. That was when I decided to start my own business after more than ten years working in a public sector job. Unfortunately, the time I was waiting to launch my new business coincided with the Covid-19 pandemic, so I suffered a loss of income and fell into difficult circumstances.

I submitted my unemployment benefit application in the first month after quitting my job. According to the law, employees who quit or lose their jobs must submit this application along with other supporting documents to the insurance agency within the first three months of receiving the termination notice. The insurance will pay 60% of the basic salary based on contributions made in the last six months. The amount wasn't large, but it was enough for me to live frugally while implementing my plans. Because I had contributed to the insurance scheme for 14 years, I was entitled to a maximum of 12 months of unemployment benefits. At that point, unemployment insurance truly became a "lifeline" for me.

From the perspective of a worker and from personal experience, I fully support the proposal to expand the scope of unemployment insurance coverage. Firstly, this regulation would broaden the "lifeline," ensuring fairer access to social security policies. According to the article my aunt sent, currently, those working under fixed-term labor contracts of one month to less than three months are subject to mandatory social insurance, but not to unemployment insurance. This is unfair and inconsistent with reality, as this group faces the risk of job loss.

Secondly, expanding the scope of unemployment insurance coverage will make the policy more flexible and better suited to current labor market trends, where a significant portion of the workforce may participate in various types of employment and have diverse employment relationships, short contract terms, and frequent job changes.

In my opinion, expanding the scope as stipulated in the draft law is an important solution to achieve the goal of having approximately 45% of the workforce participating in unemployment insurance in Vietnam by 2030.

Regarding unemployment insurance, in addition to the points mentioned above, proposals for flexible contribution rates and amendments to unemployment insurance schemes are also very important. This is because unemployment insurance serves multiple purposes, not only compensating workers for lost income, but also acting as a solution for unemployment prevention, vocational training support, job maintenance, and finding suitable new jobs. A better-designed unemployment insurance scheme would be one of the important solutions to help maintain employment or bring workers back to the labor market sooner (for those who have lost their jobs), through training, skill development, counseling, and job placement services.

Policies have been keeping pace with life in the context of an increasingly fast-moving economy and labor market.

Author: Mr. Luu Dinh Long is a journalist and lay Buddhist who previously worked in the editorial office of Giac Ngo newspaper; author of the books: Listening to Your Breath, My Own Heart Sutra, Like a Carefree Cloud, Like a Gentle Wind, Living in Peace, Living Positively, Loving Sincerely.

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Source: https://dantri.com.vn/tam-diem/mo-rong-phao-cuu-sinh-cho-nguoi-lao-dong-20241115114721510.htm