Ho Chi Minh City

Businesses with social insurance debts face criminal charge

The Ho Chi Minh City Insurance agency proposed police investigators to issue criminal charge on 33 business owners who have not paid social insurance for laborers though they still collected laborers’ monthly social insurance premiums.

Social insurance debts by bankrupt businesses harm employees’ rights (Photo: SGGP)

Social insurance debts by bankrupt businesses harm employees’ rights (Photo: SGGP)

Many of the businesses therefore rushed to pay the insurance premiums after beign informed the decision.
Businesses have fallen into social insurance debts or evaded social insurance for years though they had been fined up to VND150 million ($6,465); however, enterprises have still owed insurance premiums years by years.
Only after the new regulations that criminal charges will be against those failing to pay social insurance, business owners rushed to pay the insurance debts.
For instance, Mai Linh Transport Company’s social insurance debt reaches to VND 6.4 billion.
The Insurance Agency proposed to prosecute Mai Linh Company and 21 other enterprises on July 31, 2019 that owe total insurance debt of VND44.7 billion. The company representative soon paid VND6.4 billion debt in August.
Similarly, Thuong Thang Shoe Company in Binh Chanh paid all debt of VND5.1 billion as well as administrative fine of VND150 million according to the municipal People’s Committee.
Criminal charges have shaken businesses owners awake. Nguyen Thi Hang from the Insurance Agency said that the agency has revoked its document to police station.
Regarding insurance debts of companies in Ho Chi Minh City, Director of Social Insurance Agency Phan Van Men informed that enterprises owe VND1,600 billion, a year-on-year decrease of 0.6 percent. The decreased insurance debt is thanks to relevant agencies’ concerted measures.
From 2018, owners of enterprises who commit acts of evasion or frauds of social insurance, health insurance and unemployment insurance of laborers will face criminal penalties in accordance with Article 214, 215, and 216 of the 2015 Penal Code from September 1, 2019.
The new regulation has affected business owners’ responsibility to laborers’ right, said Mr. Men. He predicted insurance debts will be below VND 1 trillion by end of the year.
He added that business owners who have the acts of evading social insurance, health insurance and unemployment insurance premium for employees have not been criminal offenses but the agency will issue administrative fines on them or take a legal action against them.

By MANH HOA - Translated by ANH QUAN

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