Minh Hoang 2 Garment Company owes social insurance: Working together to protect workers' rights

(QNO) - Regarding the Minh Hoang 2 Garment Company Ltd. owing social insurance and benefits to its employees, this morning, April 16, the Department of Home Affairs of Quang Nam coordinated with the company and related units to organize a dialogue with nearly 200 workers.

Workers of Minh Hoang 2 Garment Company Limited attended the dialogue. Photo: VINH LOC

Social insurance debt of about 10 billion VND

At the beginning of the dialogue, Mr. Le Van Vinh - Deputy Director of Minh Hoang 2 Garment Company Limited (Dien Nam - Dien Ngoc Industrial Park, Dien Ban town) affirmed that the unit did not avoid paying social insurance (SI) but only delayed payment because the business situation was too difficult, because after the COVID-19 pandemic, the unit had no orders for 2 consecutive years 2023-2024.

However, the company still tries to compensate for the workers' salaries, but the other debts must be paid back. Up to now, the company owes about 10 billion VND to the Social Insurance, including more than 4 billion VND in principal and nearly 6 billion VND in interest.

“In 2025, we will pay off all the original social insurance debt. At the end of July, we will pay the half-month bonus for the 13th month of Tet in 2024. Today, we will also return the “loose sheet” that closes the social insurance payment period and the decision to terminate the labor contract for workers so that everyone can enjoy the related regimes,” said Mr. Vinh.

Mr. Le Van Vinh - Deputy Director of Minh Hoang 2 Garment Company Limited talks with workers. Photo: VINH LOC

As soon as Mr. Vinh finished speaking, many workers reacted strongly. Worker Nguyen Thi Tan (Dien An ward, Dien Ban) indignantly said: “The company still deducts workers’ salaries every month, so why doesn’t it pay social insurance? We request the company to quickly pay social insurance debt within 1 month so that workers can enjoy the benefits. Don’t make promises and commitments that you don’t keep, it’s been too many times, we’ve really lost trust.”

Another worker asked: “If the company still does not fulfill its commitment, who will take care of the workers’ rights? Does the company dare to take responsibility for its commitments to the representatives of the provincial departments, agencies and branches sitting here?”

Turning the question to the representative of the Social Insurance agency, a worker wondered: "Why does the company owe Social Insurance for 33 months without the relevant agency intervening or having any opinion? What is the role of the Social Insurance agency?"

A worker expressed his anger at the dialogue. Photo: VINH LOC

Mr. Van Phu Quan - Deputy Director of Social Insurance Region 22 affirmed that the Social Insurance agency is not authorized to allow any agency or enterprise to owe social insurance. When an enterprise refuses to pay, the Social Insurance agency will send a collection notice to the enterprise and at the same time report to the relevant agencies for work, but is not authorized to sanction or file a lawsuit to claim benefits for the employee.

"The Social Insurance Agency is assigned by the State to urge the collection of social insurance from agencies and enterprises, but is not given the authority or tools to implement or request state agencies to handle social insurance evasion," Mr. Quan explained.

[ VIDEO ] - Scene of the dialogue between representative of Minh Hoang 2 Garment Company and workers:

There will be measures to deal with it.

Minh Hoang 2 Garment Company Limited was established in 2005, specializing in the production of sportswear , exported to European, American and Japanese markets. At peak, workers' income was 9-10 million VND/month. On March 15, 2025, the company's production department officially stopped operating due to lack of orders from American customers.

The debt of social insurance for many years has caused frustration among workers and public opinion. Many workers have not received sick leave, maternity leave, unemployment benefits, etc. for a long time.

This morning, the company also finalized the “loose paper” and decided to terminate the labor contract for the workers. Mr. Nguyen Qui Quy - Deputy Director of the Department of Home Affairs said that based on this “loose paper”, the workers can go to work at a new unit and the new unit is responsible for continuing to pay social insurance for the workers.

“The social insurance benefits that the company previously paid for workers will not be lost. For example, if a worker pays social insurance from 2010 to 2022, these 12 years will still be recorded in the social insurance data. The interruption from 2022 to 2025 will be left blank. If from 2025 the worker works at a new unit, the social insurance will be paid in combination from 2025 to the following years. When Minh Hoang Garment Company pays its social insurance debt, those 3 blank years will be filled in,” Mr. Quy analyzed.

Mr. Quy said that the responsibility for the incident of owing social insurance and workers' bonuses belongs to Minh Hoang 2 Garment Company Limited. State agencies will be responsible for supporting, interacting, influencing, and creating conditions for businesses to fulfill their obligations to their workers.

On the morning of April 16, the company finalized the "loose paper" and decided to terminate the labor contract for the workers. Photo: VINH LOC

“Currently, we have determined that Minh Hoang 2 Garment Company Limited is in a state of late payment of social insurance. This is only at the level of administrative sanctions. If we want to move to criminal prosecution, we must determine the act of evading social insurance payment” - Mr. Quy explained and informed that the Provincial People's Committee has requested the Department of Home Affairs to report specifically to propose and recommend stronger measures to take steps to handle the situation.

On that basis, the Provincial People's Committee will direct relevant agencies to investigate the cause and behavior of Minh Hoang 2 Garment Company Limited in delaying or evading social insurance payment, including whether the company has appropriated salary deductions from workers paying social insurance. If the company is found to have appropriated or evaded payment, measures will be taken to handle it.

Source: https://baoquangnam.vn/vu-cong-ty-may-minh-hoang-2-no-bao-hiem-xa-hoi-dong-hanh-bao-ve-quyen-loi-nguoi-lao-dong-3152921.html