Benefits and Potential Risks of Ctlld Activities

The first goal of labor-management enterprises is to seek profits from labor-management activities, so it is likely that the rights of employees are not guaranteed. Therefore, the law needs to have relatively strict regulations to ensure the rights and legitimate interests of employees, thereby improving the effectiveness of State management in labor-management activities.

It can be said that the classification and identification of cases of CTLLĐ are important in determining the appropriate legal form to regulate CTLLĐ activities. This is also the basis for comparing the legal provisions on CTLLĐ of Vietnam with other countries.

1.1.4. Distinguishing CTLLD from some other activities

In practice, there are some activities that have similar characteristics to CTLLĐ such as: Service rental, labor supply, labor brokerage... In order to have correct and appropriate adjustments to CTLLĐ activities, and at the same time, clarify some different characteristics that may cause confusion and difficulties in adjusting the law and State management of CTLLĐ activities, within the scope of this Thesis, the author only distinguishes CTLLĐ with some of the following basic activities:

Labor and service rental

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In the labor leasing relationship, there still exists a certain relationship of direction, management and administration between the labor leasing enterprise and the employee. If in the labor leasing relationship, the labor leasing enterprise still has certain responsibilities towards the employee regarding working conditions, labor safety, labor hygiene, etc., then in the service relationship, the service user will not participate in the management and administration of the employee but will only be concerned with the results and quality of the service. On that basis, the employee's participation in the dialogue mechanism between the labor leasing enterprise and the employer at the workplace is taken into account and must be taken into account, while in the service relationship it is not necessary to set out. However, in the labor leasing relationship, although the employee is under the direct management and administration of the labor leasing party, in essence, the labor relationship is established and maintained between the employee and the labor leasing enterprise.

Labor supply and labor supply

The general structure of the labor supply activities of the employment introduction organization is that a number of enterprises/employment introduction centers conduct labor selection according to the needs of the employing enterprise. In case of necessity, the employment introduction enterprise will organize training so that the laborer meets the requirements of the employing enterprise and bind them to various conditions. Enterprises are supplied with labor according to the requirements without having to spend human resources and time on selection. In return, the employing enterprise must pay a referral fee to the selecting enterprise. The laborer signs a labor contract directly with the employing enterprise.

On the contrary, for the labor outsourcing activities, the labor outsourcing enterprise also organizes labor recruitment and training (if necessary) but is the one who negotiates and signs labor contracts directly with the employees, then leases them to another enterprise. The labor outsourcing enterprise will receive service fees from the leasing based on the labor outsourcing contract. The enterprise that leases the labor will arrange a workplace for the employee but does not sign a labor contract with the employee, but pays service fees to the labor supply enterprise.

Thus, there is a fundamental difference between labor leasing and labor supply: labor supply is a service activity of providing labor, after providing, the relationship ends, while labor leasing is establishing a labor relationship, then re-leasing. Workers work at the leasing enterprise but still maintain a labor relationship with the labor leasing enterprise.

In addition, for labor supply activities of job placement organizations, the party signing the labor contract directly with the employee is the enterprise using the labor; the job placement organization is not the employer, does not manage and is not responsible for the employee's rights. However, in reality, there are also cases where manufacturing enterprises do not pay salaries to employees but through job placement organizations for jobs of a

In the case of short-term labor, the employer does not sign a labor contract with the employee. As for the labor leasing activities, the leasing enterprise still maintains the labor contract with the employee, is still responsible for managing the employee, paying benefits to the employee and is responsible to the hiring enterprise for violations committed by the employee during the working period at this enterprise.

In addition, if the employment introduction enterprise/organization collects labor supply fees as a commission from both the manufacturing enterprise and the employee and can collect vocational training fees in case of receiving labor training at the request of the employer, then for the labor placement enterprise, they will only receive service fees from letting the enterprise re-hire a certain number of employees without receiving any commission/fee from the re-hired employees.

Thus, it can be seen that, in essence, labor outsourcing and labor supply or service outsourcing are completely different activities. Although it is still a three-party relationship, in each activity, the positions, roles, functions and tasks of the parties are completely different. Clearly distinguishing these activities in practice will help State management agencies in the process of inspection, examination, supervision and handling of violations, at the same time, protecting the legitimate rights and interests of the parties in the labor outsourcing relationship, especially for re-hired employees.

1.2. Potential benefits and risks of CTLLĐ activities

1.2.1. Benefits of CTLLD activities

First, for the enterprise CTLLĐ

Labor leasing brings profits to labor leasing enterprises based on the service fees paid by the enterprise leasing labor. For enterprises specializing in labor leasing, labor leasing is considered one of the business lines, in line with the inevitable movement of the labor market. In the context of increasingly deep international economic integration, with the growing development of the labor market, the demand for

With the increasing labor force, CTLLĐ will certainly bring a significant source of revenue to CTLLĐ enterprises. It has been proven in the world that many companies have huge revenue from labor supply/employment services, including the world's leading companies such as Adecco of Switzerland with over 31 million USD, Randstad of the Netherlands with over 23 million USD, Manpower of the US with over 21 million USD in 2008. In particular, these companies have expanded globally, with a huge source of revenue from overseas operations. Adecco of Switzerland has 97% of its revenue from overseas, operating in 50 countries, Manpower of the US with 91% of its revenue from overseas in 82 countries [24, p.180].

Second, for businesses that re-hire labor

In the context of a volatile economy, competition between businesses is increasingly fierce, outsourcing labor is one of the optimal ways for businesses to reduce costs and recruitment time, limit risks and costs. Businesses will not have to worry about recruitment, training policies and long-term use of human resources, reduce obligations related to employees such as: salary calculation, salary payment, social insurance obligations, welfare regimes, handling of resignations, liquidation of labor contracts... Outsourcing labor helps businesses to reduce administrative work, have time to focus on the core strategic issues of the business.

On the other hand, CTLLĐ can be considered an effective solution in promptly meeting the demand for human resources, including both unskilled and highly skilled workers, especially for jobs of an irregular nature. For small and medium enterprises, this will be a condition for businesses to access high-quality human resources at affordable prices by hiring these employees for a certain period of time, instead of the very high cost of recruiting workers to work regularly at the business.

In addition, in the process of economic integration that is increasingly deeper, more diverse, richer and more complex as it is today, CTLLĐ contributes to creating favorable conditions for foreign investors to have a human resource suitable for the investment environment. When there is no longer a need for labor, enterprises that re-hire labor can very quickly reduce the workforce without being bound by the procedures for terminating labor contracts between employees and employers according to the regulations of the host countries.

In addition, when using labor re-hired from the labor leasing enterprise, the enterprise re-hiring labor does not have to directly face risks that may occur to the employee such as procedures for termination of employment, dismissal of employees, allowances, settlement of occupational accident regimes, etc. In fact, anyone working in human resources must admit that terminating labor contracts, handling discipline, and dismissing employees is not a simple procedure. All forms of employee disciplinary action must ensure both content and form in accordance with legal regulations. Personnel in charge of handling discipline in the enterprise must be knowledgeable about the law, have experience, and avoid issuing illegal decisions that cause disputes and litigation that is time-consuming and costly. Moreover, it takes a certain amount of time to carry out the procedure, especially for enterprises that have not yet established a grassroots trade union. During that time, management, arrangement, and recruitment of new employees all encounter many obstacles. Therefore, using human resources through the form of CTLLĐ will overcome this problem. Realizing these great benefits, many Vietnamese enterprises have gradually switched to outsourcing labor from short/long-term personnel to specialized personnel or general labor to maintain their human resources in their business development strategy.

Third, for sublet workers

Besides the social significance of diversifying labor forms and creating more job opportunities for workers in general, CTLLĐ also helps workers work.

in short-term jobs, easier to find jobs; help low-skilled workers, new workers have the opportunity to enter the labor market, thereby accumulating experience, improving skills, and becoming official, regular workers in the enterprise. From there, create conditions for employees to enjoy the most complete regimes according to the law.

With the nature of leasing labor to more than one enterprise, CTLLĐ creates a network of job rotation, opening up more job opportunities for workers across the country, even between countries. Workers can be recruited directly by the enterprise that leases the labor during the lease period or immediately after the lease expires. According to statistics in the US, on average, 20% of temporary workers are successful in being recruited directly at the leasing enterprise, becoming official employees of the enterprise [31, p.11].

During the process of working at the labor market, employees will accumulate work experience, from which, employees have the opportunity and ability to find better jobs. In addition, labor market can create more income for employees, bring employees better working conditions, better employee benefits. In times when the labor market has excess supply, few jobs, and increasing unemployment, labor market is considered an effective solution for employees to find jobs, especially for employees with low professional qualifications.

Fourth, for the socio-economic

CTLLĐ also brings certain effects to the socio-economic development of each country. According to ILO research documents, the global private employment service industry has grown rapidly from mid-1999 to 2006, reaching 341 billion USD in 2007, 6 national markets dominate this industry globally, accounting for 80% of total revenue: United States (28%), United Kingdom (16%), Japan (14%), France (9%), Germany

(6%) and the Netherlands (5%). Over the past decade, the fastest growing market has been Japan, from a market size of 14.7 billion USD in 2000 to 43.3 billion in 2007. [24, p.158] These figures show that private labor supply services have contributed to GDP growth for countries. Every year, these companies will contribute a significant amount to the State budget through paying taxes as prescribed by law.

On the other hand, CTLLĐ contributes to creating more job opportunities for workers, reducing the burden of the State on unemployment, thereby contributing to ensuring social order and improving people's lives. In particular, by accepting this activity, the State demonstrates its positive attitude towards the needs of the labor market, respecting the objective truth of the market, integrating more deeply into the regional and international labor market, contributing to the stability and general development of the socio-economy.

It can be said that CTLLĐ has met the aspirations and brought benefits to all three parties: CTLLĐ enterprises, labor leasing enterprises and employees as well as contributed to the overall development of the country's socio-economic situation.

1.2.2. Potential risks of CTLLĐ activities

Besides the benefits as analyzed above, CTLLĐ also has many potential risks. If there is no proper adjustment of the law, this activity can cause significant consequences for the parties in the CTLLĐ relationship as well as in terms of economy and society.

The labor outsourcing business poses many difficult problems for the labor outsourcing business such as: applying labor discipline measures, dismissal or unilateral termination of labor contracts will encounter many difficulties or be impossible when the re-hired employees do not actually violate the labor regulations of the labor outsourcing business but violate the regulations of the enterprise that re-hires the labor. The employee can be returned to the enterprise by the enterprise that re-hires the labor.

CTLLĐ enterprises. Thus, CTLLĐ enterprises must face risks during the time when CTLLĐ operations are interrupted, bear all arising costs as well as pay salaries and other benefits to employees during idle time and when labor is redundant.

For subcontracted workers, the salary, bonus and other benefits of the workers may not be implemented in proportion to their labor. When working under the form of CTLLĐ, workers may have to work with higher intensity, harder work but only receive the old salary, while other official workers with the same nature and content of work at the subcontracting enterprise receive higher salaries with better policies, along with the risk of being discriminated against by the enterprise at the subcontracting enterprise.

In addition, employees will face the risk of being transferred to work in remote places, with working conditions that do not ensure safety and hygiene. Employees' rights to participate in social insurance, health insurance, and unemployment insurance are also almost not implemented because these subjects are often ordinary workers with limited legal awareness, so CTLLĐ enterprises often find ways to avoid or be ambiguous about their obligations to reduce or avoid them with explanations about the form of contract work, or only sign short-term labor contracts of less than 03 months. On the other hand, the risk of work accidents is also higher because employees are not fully informed about the risks at work; if a work accident occurs, the two enterprises often pass the responsibility to each other, affecting the rights of employees... In fact, due to the need for employment, many employees do not need to know or do not care about the agreement between the enterprise that re-hires the labor and the CTLLĐ enterprise, but only care about the agreement on salary in the labor contract.

In addition, when employees are sent to work for more than one enterprise, constantly changing workplaces and working environments, it leads to a situation where employees are not motivated.

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