Advanced labour code dismaying foreign employers, illustration photo As soon as the new law came into force in early January, a great number of employers, especially foreign-invested enterprises (FIEs), displayed their dissatisfaction with Article 32.3 which stipulated that part-time employees shall be entitled to receive rights and obligations equal to those of full-time employees, including in equal opportunities, safety, and hygienic working environments. “In other words, employers have to fulfil insurance fees for part-time employees,” said Mai Duc Thien, deputy director-general of the Department of Legal Affairs at the Ministry of Labour, Invalids, and Social Affairs (MoLISA). Speaking at a workshop about the Labour Code last month, hundreds of FIEs voiced that the total cost they pay for labourers has now increased greatly as a result of the changes. Those include the on-year growing minimum wage, subsidies, and health and social insurance, among others. “Thus, paying insurance for part-time labourers will increase the cost burden for FIEs in Vietnam,” said Tran Nguyen Trung, director at Japanese-backed recruitment consultants I-GLOCAI. Early this month, Hoang Xuan Hiep, a member of the Vietnam Textile and Apparel Association and owner of a garment facility employing dozens of part-time workers, said that the cost for businesses will be higher if paying insurance for labourers who work fewer hours than full-time labourers. “Increasing costs are seen as inappropriate at this time as many businesses like us are struggling to cope with COVID-19,” said Hiep. Vietnamese labour costs have been a concern for many businesses, especially FIEs, despite the nation’s perceived advantage of low-cost labour. Speaking at a webinar about the law last month, Thiet Nguyen, director of Management Consulting at PwC, said that the minimum wage in Vietnam has constantly increased over the years. “In the 2006-2015 period, the sum grew as much as four times. …
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