In the recent years, service of labor hire has appeared and been become favorite across localities of Binh Duong, Dong Nai, HCMC. Businesses’ labor hire focuses mainly on unskilled blue-collar workers for areas of garment, footwear, confectionary, etc. Using this service, businesses will not worry about labor search, recruitment and training as well as payment of salary, bonus and premium for laborers.
Owing to poor management and shortage of compulsory regulations between businesses and labor hire companies, laborers must suffer losses.
Some labor hire companies take advantaged of laborers’ poor awareness to neglect their obligations. For instance, on Dec. 14, 2012, a bus carrying some laborers of a labor hire company in Dong Nai province to Foster VN Company in Binh Duong province met a traffic accident, injuring 22 and killing 2.
Based on contracts, the labor hire company must implement duties for unlucky laborers because Foster VN Company paid all salaries and other allowances for the labor hire company. As for 2 people killed in this accident, Binh Duong Social Insurance sector could not solve social insurance for the two cases, owing to the labor hire company did not pay premium for these laborers. Therefore, Foster VN Company mobilized employees to help the unlucky laborers.
This is a warning for businesses in need of human resources and labor hire companies. At present, apart from businesses granted licenses of labor hire service, there are remain illegal labor hire enterprises. To draw experiences in the mentioned case, Foster VN Company has checked and found out breaches of labor hire businesses that the company signed. So, Foster VN Company ended contracts with the illegal labor hire companies.
Binh Duong now has more than 800,000 laborers. So, how many illegal labor hire companies are there in this province? This question is waiting for reply from functional agencies.
The provincial Social Insurance vice director Le Minh Ly said that related agencies should implement inspections to ensure rights and interests for laborers.
Labor hire is the term applied to provision of outsourced skilled and unskilled blue-collar workers hired for short- or long-term positions. The workers, known as contractors, field employees, temps, on-hired employees or even just employees, are employed by the labor hire organization. They are not employed by the company to whom they provide labor. An essential component of any labor hire organization are the two fundamental concepts of pay and charge rates. The pay rate is the per-hour wage paid to the employees. The charge rate is the fee levied on the client to whom labor is provided.
In reality, some labor hire firms receive enough payments from their clients but these firms do not pay social, health and unemployment insurance fees for laborers. This causes pity consequences for laborers. To minimize losses for laborers, the provincial Social Insurance suggests companies signing contracts with labor hire firms to pay attention to laborers’ rights and interests. In addition, the local Social Insurance asks functional agencies to implement inspections on labor management at labor hire firms.
Reported by T.Vy – Translated by A.C
