Enterprises must pay compulsory social insurance if they have employees working under labor contracts with a term of 01 month or more.

Legal grounds:

• Labor Code 2019;
• Law on Social Insurance 2014.

The State encourages enterprises to organize vocational training and create jobs for the society. Therefore, enterprises are allowed to recruit people for vocational training and then officially work for them after finishing the training course.

1. Enterprises can accept people to train or not?

Pursuant to Article 61 of the Labor Code 2019 as follows:

Article 61.  Vocational training, apprenticeship to work for the employer

1. Vocational training to work for an employer is an employer’s recruitment of people for vocational training in the workplace. Vocational training duration according to the training program of each level as prescribed by the Law on Vocational Education.
2. Apprenticeship  to work for an employer means an employer recruits people to provide guidance on job practice and job training according to job positions at the workplace. Apprenticeship period shall not exceed 3 months.
3. Employers who recruit people for vocational training or apprenticeship to work for them are not required to register for vocational education activities; tuition fees are not collected; must sign a training contract in accordance with the Law on Vocational Education.
4. Vocational trainees and apprentices must be at least 14 years old and have enough health to meet the requirements of vocational training or apprenticeship. Vocational trainees and apprentices on the list of heavy, hazardous or dangerous occupations or jobs, or particularly arduous, hazardous or dangerous jobs, promulgated by the Minister of Labor, War Invalids and Social Affairs, must full 18 years or older, except in the fields of art, physical training and sports.
5. During the Vocational training or apprenticeship period, if the Vocational trainees or apprentices directly or participates in labor, the employer shall pay the salary at the rate agreed upon by the two parties.
6. At the end of the vocational training or apprenticeship period, the two parties must sign a labor contract when all the conditions prescribed in this Code are satisfied.

According to the above regulations, when conducting vocational training, enterprises do not need to register for vocational education activities. However, it should be noted:

• Enterprises and vocational trainees must enter into training contracts;
• Enterprises are not allowed to collect tuition fees; and
• Must sign a labor contract with the vocational trainees after completing the vocational training course if meets the prescribed conditions.

In addition, if the vocational trainees participates in the labor force, he/she shall be entitled to a salary according to the agreement. So, if vocational trainees receive salary, do they have to participate in social insurance contributions?

2. Vocational trainees have to participate in compulsory social insurance?

Pursuant to Points a and b, Clause 1, Article 2 of the Law on Social Insurance in 2014 as follows:

Article 2. Subjects of application

1. Employees being Vietnamese citizens are subject to compulsory social insurance, including:
   1. Persons working under an indefinite term labor contract, a definite term labor contract, a seasonal labor contract or a certain job with a term of from full 3 months to less than 12 months, counting both labor contracts signed between the employer and the legal representative of the person under 15 years of age in accordance with the labor law;
   2. Persons working under labor contracts with a term of from full 1 month to less than 3 months;

According to the above regulations, subjects who must participate in compulsory social insurance are those who work under labor contracts with a term of full 1 month or more. While the vocational trainee is not an employee at the enterprise, but only has a training relationship with the enterprise under the training contract.

Therefore, if an individual is in vocational training course at an enterprise under a training contract, he or she is not eligible to participate in compulsory social insurance.