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| Tien Thuan Garment Company in Khanh Hoa province. The Ministry of Home Affairs has proposed creating a centralized national platform for electronic labor contracts__Photo: VNS/VNA |
The Ministry of Home Affairs has proposed the establishment of a centralized national platform for electronic labor contracts in a bid to accelerate digital transformation in the management of labor, wage and social insurance.
The proposal is raised in a draft decree on electronic labor contracts now open for public comments.
Since the Labor Code took effect in 2019, electronic contracts have been proved to provide convenience for both employers and employees, help save time, costs and paperwork, offer flexibility and improve corporate governance.
However, the lack of a clear legal guidance and centralized platform has hindered widespread adoption, the ministry said.
It pointed out there has been absence of detailed regulations on contract modifications, termination and recognition of legal validity when e-contracts are used in transactions with third parties such as tax authorities, social insurance agencies and banks.
There is also no official national database on labor relations, wage and social insurance while paper-based reports remain dominant, making it difficult to monitor and analyze related data.
Currently, about 21 technology companies offer commercial e-contract software, such as Viettel, VNPT, FPT and EFY, to around 17,230 employers with an average 2.5 million contracts per month, representing a rise of 100 per cent per year, official statistics showed.
The adoption of e-contracts is expanding rapidly but still modest compared to the scale of Vietnam’s labor market, the ministry said.
These systems, however, only serve users for internal purposes and are not connected to the national population database and the national social insurance database.
Under the Government Resolution No 71/NQ-CP dated on April 1, the Ministry of Home Affairs was tasked with developing a national electronic labor contract platform.
The draft decree, with five chapters and 29 articles, is expected to set out legal and technical requirements for the development and operation of the platform, ensuring data integration, cybersecurity and inter-agency coordination.
The decree will define responsibilities for employers, employees and service providers to ensure data on the platform is accurate, complete, clean and live, the ministry said.
The decree is expected to provide a foundation for Vietnam to shift toward a fully labor management system for the broader goals of e-Government, digital economy and digital society.- (VNS/VLLF)
