Workers, who were contracted out to companies by the labour services, risked missing out on benefit entitlements and being underpaid, Dang Duc San, head of the ministry's Legislation Department, said.
In Viet Nam, labour leasing services employ, train and sign contracts with clients and lease them out as workers to companies. The service first emerged here in 2001.
Such companies were not sufficiently regulated under the labour laws despite their large presence around industrial parks especially in Ha Noi, HCM City, Binh Duong, Dong Nai and Can Tho, San said.
Employees could be exploited because they were kept ignorant of the agreements made between their employer and their labour leaser even though many of the contracts were long-term. Currently regulations only applied to short term contracts.
In some cases the labour leasing companies paid salaries less than the amount agreed with the employer, San said.
He said that neither the company nor the labour leaser accepted responsibility to pay the workers' health and social insurance.
According to San, most labour leasing companies were only licensed to introduce jobs, not to lease out labour.
The inspection would be conducted in Ha Noi, HCM City, Binh Duong, Dong Nai and Can Tho by the end of September and authorities in 20 other provinces have been told to conduct similar inspections and report to the ministry.
The management offices would be able to use the findings to issue regulations to protect workers' rights, San said.
The ministry would soon issue regulations that restrict the services to arrange only short-term labour leasing agreements.
Changes needed to made so that for long-term contracts employees could sign directly with the company they work for, he said. — VNS
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