What Should Be Done If Employees Refuse to Pay Social Insurance?

The company has 5 new employees who have signed fixed-term contracts. I informed them that they would join the social insurance next month, but all 5 persons refused to participate and even drafted an agreement not to participate in social insurance. They mentioned that in the future they would incur losses. How should I resolve this?

According to the provisions of Clause 1, Article 2 of the Social Insurance Law 2014, Vietnamese citizens who are employees subject to mandatory social insurance participation include:

- Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts, or labor contracts for specific jobs with a term of 03 months to less than 12 months, including labor contracts signed between the employer and the legal representative of persons under 15 years old in accordance with the labor law;

- Persons working under labor contracts with a term of 01 month to less than 03 months;

...

Thus, in the case of persons working under definite-term labor contracts, they fall into the category of mandatory social insurance (SI) participants. Social insurance provides many benefits to employees such as maternity, sickness, accident policies, etc. Therefore, the company should explain SI policies and if the employee makes an agreement request not to contribute to SI, they may be fined up to 1 million VND (Article 38 Decree 28/2020/ND-CP).

Best regards!

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