Law on Employment Amendment: Developing a flexible, modern, efficient, sustainable, and integrated labor market

26/09/2024 04:15 PM


On September 24: at the National Assembly (NA), the 37th conference, the Standing Committee of the NA give opinion on the draft amended Law on Employment. NA’s Vice Chairwoman Nguyen Thi Thanh, chaired the session.

Overview of the meeting

The capacity and effectiveness of state management employment are enhanced

Presenting the statement at the session, Minister of Labor, Invalids, and Social Affairs (MOLISA) Dao Ngoc Dung said the proposal to draft amended Law on Employment record stemmed from the need to institutionalize the 2013 Constitution, the Party's guidelines, and the State's policies on human resource development, employment, the labor market, and unemployment insurance policy reform, as rgulated at the 13th National Congress of the Communist Party’ document, Resolution 28-NQ/TW dated May 23, 2018, on social insurance reform, and Resolution 42-NQ/TW dated November 24, 2023, from the 8th meeting of the 13th Central Committee, continuously implementing renewal and improvement to meet the needs of national construction and defense in the new era, along with other related resolutions and directives.

The law amendment ensures consistency and coherence within the legal system, especially concerning newly revised laws (such as the 2019 Labor Code, the 2020 Law on Residence, the 2020 Law on Vietnamese Guest Workers under Contracts, and the 2024 Law on Social Insurance) which aligns with standards, general rule and commitments in the employment field that Vietnam joined under the United Nations Conventions on the Elimination of All Forms of Discrimination Against Women, the Rights of the Child, the Rights of Persons with Disabilities, and the conventions of the International Labor Organization (ILO) and other international commitments Vietnam participates.

Minister of Labor, Invalids, and Social Affairs Đào Ngọc Dung 

According to Dung, the law amendment shall address existing shortcomings regarding employment support, labor market information, employment services, vocational skill development, skill eveluation and certification, unemployment insurance, and labor registration and management. State management capacity and efficiency are enhanced in the employment sector adapts to the aging population, the Industrial Revolution 4.0, and issues related to sustainable employment and labor force management.

Draft Examination Report

Presenting the draft examination report, Nguyen Thuy Anh, Chairwoman of NA’s Social Affairs Committee, stated that the drafting had adhered to the four policies approved by the National Assembly. The draft law is suitable with the Party's guidelines, the Constitution's regulations and spirit, and ensures consistency and coherence within the legal system, meets the relevant international agreements. The draft law met the requirement under the Law on the Promulgation of Legal Documents.

However, the Standing Committee of the Social Affairs Committee noted that the quality of subreports needs further revision, supplementation, and completion. The report on implementation summary of the law and the policy impact assessment lacked data, without justifying, embracing and persuading the proposed amendments. When implementing these policies, the impact on the state budget and unemployment insurance fund are not detailedly reviewed.

Additionally, chairwoman said that some policies were previously enacted under the law but have been not yet implemented are still included without providing fundamental solutions to address the recognized inadequacies. Some provisions aim to address the digital transformation and socio-economic development but remain declarative and lack feasibility. Some parts of the draft law do not ensure practical viability and fail to provide enough regulation to meet the real demands of labor management.

Chairwoman of the Social Affairs Committee Nguyen Thuy Anh presents the preliminary inspection report

Developing a flexible, modern, efficient, sustainable, and integrated labor market

During the session, participants praised the comprehensive and meticulous preparation of documents in line with the Law on the Promulgation of Legal Documents, making the draft eligible for submission to the NA’s Standing Committee.

On his remarks, NAChairman Tran Thanh Man emphasized that the Law on Employment revision must meet the requirements for developing both domestic and foreign labor markets that are flexible, modern, efficient, sustainable, and integrated. The revision should align with Resolution 42/NQ-TW dated November 24, 2023, from Vietnam party's Central Committee, and Directive 21-CT/TW dated May 4, 2023, on continuing innovation, development, and improving vocational education quality through 2030, with a vision to 2045.

The Chairman urged further review of the draft law, ensuring consistency with Labor Code, Social Insurance Law, and the Law on the Elderly to avoid overlap and ensure coherence within the legal system. He also highlighted that clearer methods for implementing employment transition support for rural workers and considered whether this revision could resolve current unemployment insurance issues.

 NA chairman Tran Thanh Man

Giving idea at the conference, member of the party central committee general secretary, chairman of the national assembly office Bui Van Cuong agrees with regulation on loan source for job for employment chance under Article 8. Accordingly, the National Employment Fund would be dissolved, so the remain balance is transferred to the central budget to allocate estimated cost provisions through the Vietnam Bank for Social Policies.

He suggested that the drafting committee review the fund's activities and remaining balance. He further emphasized the need to ensure the appropriate allocation of capital for the Vietnam Bank for Social Policies from both central and local budgets for job creation loans.

Conclusion of the session

Concluding the session, Vice Chairwoman of the NANguyen Thi Thanh commended the Government and the Ministry of Labor, Invalids, and Social Affairs for their diligent preparation of the draft in accordance with the Law on the Promulgation of Legal Documents. She also acknowledged the thorough preparation of the preliminary report by the Social Affairs Committee, which raised key issues to guide the drafting committee.

The Vice Chairwoman asked the drafting committee to continue gathering feedback, supplementing information and data, and refining the draft law and its accompanying reports to respond fully to the opinions of the Standing Committee of the National Assembly. The completed draft will then be submitted for review at the 8th session of the National Assembly.

VSS-Tra