### The Need for Employment Contracts in the Gig Economy
In the rapidly evolving landscape of the labor market, the rise of gig and freelance work comes with significant challenges. A pressing call for institutionalized regulations is emerging, especially for technology platforms that regularly engage workers. Implementing mandatory employment contracts—even if they are flexible—is essential to safeguarding the rights and welfare of these workers.
### The Reality of Freelance Life
Take the story of Nam, a former accounting student. After four years away from university, he is no longer the optimistic individual who graduated with dreams of a stable career. Instead, he is a weary hustler navigating the busy streets of Hanoi, working multiple jobs to scrape by. From waiting tables to driving for a ride-hailing service, Nam’s struggle encapsulates the reality faced by many freelancers, especially in cities like Hanoi and Ho Chi Minh City.
His primary income stems from his role as a motorbike driver for Grab, which, while providing enough to cover basic needs, leaves him vulnerable. The precarious nature of his work becomes painfully apparent when he falls ill. Unable to work consistently, he has turned to friends for financial support, underscoring the lack of a safety net afforded to freelance workers.
### The Consequences of Insecurity
Nam’s situation is not unique. In Vietnam, over 33 million freelancers make up around 65% of the labor force. Alarmingly, nearly 44% of these workers fall into the category of “vulnerable employment.” The connection to social insurance is tenuous at best; a staggering 97.9% lack sufficient coverage. This gap leaves them without the health and unemployment benefits that are standard among formal employees, making their responsibilities heavier during times of crisis.
Nam had once considered a formal position with a stable salary. Yet, because the pay was lower than what he earned as a freelancer, he opted for the gig economy—a decision that now seems increasingly precarious as his health fails.
### The Absence of Legal Protections
Freelancers are often excluded from critical social policies, leaving them exposed in moments of need. Regulations that demand employment contracts, even flexible ones, for regular and long-term workers are crucial. Such contracts can provide freelancers with access to vital social insurance and health benefits, which in turn cultivate a more secure work environment.
Vietnam’s current labor laws do not forbid flexible contracts; they merely require enforcement and enhancement for better worker protection. Other nations have successfully addressed similar issues. For instance, countries like France, Germany, and Sweden have established frameworks that safeguard the interests of freelancers.
### Learning from Global Examples
Germany offers an exemplary model through its two-tier unemployment system. This system provides a safety net for both formal employees and freelancers, ensuring that even those engaged in less traditional employment arrangements are covered in times of need. The country’s approach could inspire Vietnam to develop similar regulations.
### Legislative Changes in Vietnam
Vietnam is slowly making strides towards addressing these issues. The recent amendments to the Employment Law aim to expand unemployment insurance coverage for freelancers and flexible workers. Under this new law, even those on fixed-term contracts as short as one month now qualify for benefits, aligning the new regulations with broader social insurance reforms.
These legislative changes signal progress, but the responsibility now lies with companies and organizations. They need to be compelled to establish at least flexible employment contracts for frequent freelancers, thereby eliminating loopholes that previously left many underprotected.
### Conclusion of Insights
The transformation of Vietnam’s labor market requires a robust framework that adapts to the needs of a modern workforce. By institutionalizing regulations that protect freelancers and gig workers, the nation can foster a more equitable labor environment. Whether through flexible contracts or expanded access to benefits, the shift toward safeguarding the rights of these workers is not just essential; it’s inevitable.