Vietnam Ride-Hailing Drivers Seek Expanded Social Security, Citing International Precedents

Drivers for ride-hailing platforms in Vietnam are facing significant challenges, including unstable incomes, long working hours, and a lack of social security, according to a recent report. At a symposium held in Ho Chi Minh City on September 15, many drivers expressed concerns about income volatility due to changing commission rates and the necessity of working 13-15 hours daily without days off or social benefits. Research by Associate Professor Dr. Nguyen Duc Loc, Director of the Institute for Social Life Research, indicates that drivers pay commissions of approximately 20-30% of their revenue per trip, while bearing the costs of fuel, vehicle maintenance, and insurance themselves. A survey revealed that about 88% of drivers wish for a suitable mechanism to participate in mandatory social insurance, and nearly 93% expect their profession and legal status to be recognized. Experts suggest that platforms should assume certain responsibilities to ensure social security for workers in this sector. Internationally, drivers for ride-hailing platforms are often classified as independent contractors, or "partners." However, many countries mandate that these platforms contribute to various social security benefits, including occupational insurance, mandatory social insurance, and pension funds. For instance, Malaysia has required ride-hailing drivers to participate in social insurance for the self-employed since 2017, with platforms like Grab partially reimbursing contributions for eligible drivers. India's Social Security Code 2020 defines platform labor but ensures social security rights, while South Korea offers unemployment and maternity insurance to certain platform workers. In the United States, legal battles have compelled platforms to offer more benefits. In New York, Uber and Lyft will provide a set of new benefits from 2024, including a guaranteed hourly earnings floor and paid sick leave at a rate of $18.58 per hour of leave, capped at 56 hours annually. In Washington, after an agreement between platforms, unions, and legislators, companies must provide minimum wages, paid leave, and other benefits. California mandates minimum earnings and conditional health insurance for ride-hailing drivers. Many nations question whether ride-hailing drivers are truly self-employed, given that platform algorithms dictate pricing and trip availability without driver negotiation power. Singapore has established a separate legal category for "platform workers," requiring companies like Grab to contribute to the Central Provident Fund (CPF) alongside drivers. In China, platform drivers are categorized under "new forms of employment," with a pilot program for occupational accident insurance initiated in July 2022. An International Labour Organization (ILO) study highlighted the growing importance of the platform economy in Asia-Pacific countries, which rely on services for growth. The ILO recommends that countries develop comprehensive governance frameworks, addressing legal and policy aspects, with a focus on worker protection and social dialogue. Information source: VnExpress