Firms owing social insurance payment face court action

The HCM City’s Social Insurance Agency has filed lawsuits against 28 companies who owe social insurance payments worth a total of 10 billion VND (527,000 USD).

The companies, most of which are locally owned, had missed payments for more than 2,500 employees for many months, said Nguyen Trong Nam, head of agency’s Inspectorate Office.

The agency said it would continue to take action against companies that do not make payments for more than six months or owe more than 100 million VND (5,270 USD).

Cao Van Sang, director of the agency, said that the lawsuits were time-consuming, and, in some cases, the companies had filed bankruptcy or owners fled before the court issued a conviction.

The proceedings, for example, against the Vina Haeng Woon Industrial Company, which owes social insurance payments worth 1.6 billion VND (84,300 USD), took 16 months as the company filed for bankruptcy.

Claims for social insurance payments are difficult to achieve because violators only face civil, not criminal, charges and ignore the courts’ final decisions.

During the first six months of the year, nearly 30 companies were taken to court for owing social insurance payments worth more than 4.5 billion VND (237,000 USD), according to a report from the agency.

Meanwhile, the Da Nang City ’s Social Insurance Agency took legal action against 10 companies that failed to pay social insurance fees for their staff, Le Van Lich, director of the agency, said.

The companies owed fees worth a total of more than 7 billion VND (368,000 USD). The fees were for periods ranging from seven months to four years.

Lich said the agency planned to file lawsuits against other large companies that evade social insurance payments for months to protect the rights of thousands of labourers.

As of the end of June, the city said more than 850 companies owed social insurance payments worth a total of 47 billion VND (2.47 million USD) over a three-month period.

Tags: Vietnam insurance, Vietnam insurance market, Vietnam social insurance