ROLES OF EMPLOYMENT SERVICE CENTERS TO UI IMPLEMENTATION MINISTRY OF LABOUR, INVALIDS AND SOCIAL AFFAIRS OF VIET NAM

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1 ROLES OF EMPLOYMENT SERVICE CENTERS TO UI IMPLEMENTATION MINISTRY OF LABOUR, INVALIDS AND SOCIAL AFFAIRS OF VIET NAM

2 CONTENTS I. Roles of Employment Service Centers (ESC) in the UI implementation II. III. Current status of the job consultation, job placement for the workers on unemployment insurance Proposed measures

3 I. ROLES OF ESC IN UI IMPLEMENTATION 1. The establishment and development of ESC - Established in 90s - In 2001: 178 Employment Introduction Centers (ESC at present) - At present: 129 ESCs - ESCs under the management of the provincial-level Department of Labour, Invalids and Social Affairs (DOLISA) : 63 ESCs - ESC under the management of other socio-political sectors, organizations: 66 ESCs.

4 I. ROLES OF ESC IN UI IMPLEMENTATION 2. Legal provisions on employment services - Labour Code 1994; - Government Decrees on conditions, procedures for the establishment and operation of ESC; - Circulars issued by the Ministry of Labour, Invalids and Social Affairs (MOLSIA) and other relevant ministries.

5 I. ROLES OF ESC IN UI IMPLEMENTATION 3. Functions, tasks of ESC - Job consultation, vocational training consultation, policies on industrial relations as stipulated by the labour legislation; - Job placement, manpower supply; - Collection, analysis and dissemination of the labour market information (LMI); - Vocational training as stipulated by Law;

6 I. ROLES OF ESC IN UI IMPLEMENTATION 3. Functions, tasks of ESC (Continued) On implementing the UI policy, functions of ESCs under MOLISA incorporate some responsibilities for the receipt, settlement of UI claims, including: - Receipt of UI claims, review and implementation of procedures for settlement of UI claims. - Provision of information, dissemination of UI scheme. - Relevant provision of the job consultation, job placement and vocational training for people on UI allowance.

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8 I. ROLES OF ESC IN UI IMPLEMENTATION 4. Roles of ESC in UI implementation UI policy facilitates the soon return of the labour market of the unemployed and help them find job quickly; in parallel, UI policy also includes provisions for UI entitlement aiming to encourage workers to find job actively. The job consultation, job placement, the provision of LMI are very essential to promote the job-seeking activities of workers. Therefore, within the functions and tasks, ESCs take a pivotal role in the UI implementation.

9 II. CURRENT STATUS OF THE JOB CONSULTATION, JOB PLACEMENT FOR WORKERS ON UNEMPLOYMENT BENEFITS 1. Some models and forms of the job consultation - Consultation models: + Concentrated model: for ESCs with a large number of the registered unemployed. + Integrated model: for ESCs with a modest number of the registered unemployed. - Forms of the job consultation, job placement: direct; indirect; integrated...

10 II. CURRENT STATUS OF THE JOB CONSULTATION, JOB PLACEMENT FOR WORKERS ON UNEMPLOYMENT BENEFITS 2. Models of the vocational training support - ESC provides the vocational training for workers: the consultation department or group provide the consultation on the rights, benefits of vocational training, current occupations in respond to the labour market demand. - Workers join the vocational training in the local vocational training providers: After the workers are consulted about policies on vocational training supports, training providers will arrange, organize training courses for workers when ESC have the sufficient number of registered trainees and inform workers of the launching date for training courses

11 II. CURRENT STATUS OF THE JOB CONSULTATION, JOB PLACEMENT FOR WORKERS ON UNEMPLOYMENT BENEFITS 3. Outcomes of the job consultation, job placement and vocational training supports for workers on unemployment benefits:

12 II. CURRENT STATUS OF THE JOB CONSULTATION, JOB PLACEMENT FOR WORKERS ON UNEMPLOYMENT BENEFITS 4. Payment of vocational training supports According to the report of Viet Nam Social Insurance, payments of vocational training grant for each year as follows - In 2010: USD 9, In 2011: USD 20,048, an annual increase of 107%. - First 7 months of 2012: USD 64,317, an annual increase of 220%.

13 II. CURRENT STATUS OF THE JOB CONSULTATION, JOB PLACEMENT FOR WORKERS ON UNEMPLOYMENT BENEFITS 5. General remarks 5.1. Strengths: - The job consultation, job placement attract increasingly attention and achieve a high level of efficiency; the cases of receiving the job consultation, job placement increase annually; to date, all workers on unemployment benefits have access to the job consultation, job placement in ESCs. - ESCs actively consult about suitable programs and training providers to the unemployed.

14 II. CURRENT STATUS OF THE JOB CONSULTATION, JOB PLACEMENT FOR WORKERS ON UNEMPLOYMENT BENEFITS 5.1. Strength (Continued): - The awareness of the unemployed has been improved in the training, upgrading of skills to find jobs. They understand the urgent needs of these issues to their lives. - Workers receiving the vocational training supports really expect that after finishing vocational training courses, they could find new jobs or be selfemployed.

15 II. CURRENT STATUS OF THE JOB CONSULTATION, JOB PLACEMENT FOR WORKERS ON UNEMPLOYMENT BENEFITS 5.2 Shortcomings: Some ESCs play inactive roles and pay a modest attention to the job consultation, job placement for the unemployed. Consellor, the staff in charge of the job consultation, job placement have not been trained professionally. Due to a high pressure of the unemployment registration and a high number of UI claims, the quality of the job consultation, job placement in some ESCs is quite limited. Consulting methods have not been diversified.

16 II. CURRENT STATUS OF THE JOB CONSULTATION, JOB PLACEMENT FOR WORKERS ON UNEMPLOYMENT BENEFITS 5.2 Shortcomings (continued) - #cases received the job consultation account for a quite small ratio in comparison with #cases granted decisions to receive UI benefits; - Procedures for the payments of fees for the job consultation, job placement are still cumbersome; - Percentage of cases received vocational training supports is low among #cases receiving UI benefits, due to following reasons: allowance levels and entitlement period are low, many shortcomings arise in the recruitment needs of enterprises, payment procedures for training providers...

17 III. PROPOSED MEASURES FOR ESC IN THE JOB CONSULTATION, JOB PLACEMENT AND VOCATIONAL TRAINING 1. It is necessary to define clearly the roles and responsibilities of ESCs in UI implementation. 2. Disseminate the UI policies to employees, employers, agencies and organizations by various and suitable forms to each group. 3. Build capacities for the staff in charge of the job consultation, job placement and vocational training, labour market information This staff shall have a good understanding of the UI policy, labour legislation in general (for instance labour contracts, salaries and minimum wage, social insurance, health insurance ); in addition, they shall become professionalized and dedicated at work.

18 III. PROPOSED MEASURES FOR ESC IN THE JOB CONSULTATION, JOB PLACEMENT AND VOCATIONAL TRAINING 4. Establish and finalize gradually the organization system and network to receive, settle UI claims, in particular the remote areas, localities with large workforce 5. Further promote the investment in facilities and equipment to provide the job consultation, job placement and vocational training. 6. The cooperation and support of employers, employees and relevant agencies in the UI implementation are very essential.

19 THANK FOR YOUR ATTENTION!