Govt seeks to import more foreign workers
A newly-amended draft Labour Law is seeking to import more foreign workers to fulfill domestic demand, expand legal protections and coverage and increase maternity leave for mothers with new born babies.
The government told the parliament at the ongoing NA session yesterday that the time has come to amend the existing Labour Law, which was once amended and promulgated in 2006.
Deputy Minister of Labour and Social Welfare Ms Baikham Khattiya presented the newly amended draft to the ongoing ordinary session of the National Assembly (NA) for debate.
The draft stipulates that a workplace or enterprise will be allowed to employ foreign labourers engaged in physical work up to a maximum of 15 percent, an increase compared to the 10 percent total stipulated in the existing law.
Foreign workers engaged in white collar jobs and professions will be allowed to represent up to 25 percent of any given business, an increase from the current 20 percent, according to the draft.
The amendment, which seeks to import more foreign workers comes after it has become evident that Laos is facing a looming labour shortage in both skilled and unskilled positions.
Economists have suggested that Laos needs to import more foreign workers to fulfill market demand in order to maintain high-level economic growth.
Deputy Minister Baikham told the parliament that all 77 articles in the existing law were amended, while new articles were also added, bringing the total to 181 articles with 17 parts and 29 chapters in the new draft.
Given that the existing Labour Law covers only certain aspects of workplace relations, the deputy minister stated that the new draft expands the coverage for workers and employers in all areas to ensure all parties enjoy protections according to the law.
The existing law covers only those workers and employers in businesses units and those having employment agreements that are valid for at least three months known as the “formal working system.”
However the new draft covers workers in all areas including those working with international organisations and those working in the informal economy such as day labourers on farms or building sites or domestic housekeepers.
“This is designed to ensure all workers and employers in both formal and informal working systems are protected by this law,” Ms Baikham told the parliament, citing the newly-amended draft law.
Once the draft-amended law is approved, “All-level dispute mediating systems will have reference to the law when addressing labour disputes,” she said.
The draft also stipulates an increase in maternity leave from three months (90 days) to 3.5 months (105 days) in accordance with the International Labour Organisation Convention.
In addition, the draft also stipulates that foreigners are not allowed to take certain kinds of typical jobs should be preserved for local workers.
This follows public complaints that jobs like small-scale street food venders, hairdressers, barbers, beauty salon workers and car-washers which should be preserved for Lao people have been taken over by foreigners.
NA member for Champassak province Vatsana Sirima said the government should not allow foreigners to take over jobs preserved for Lao people and only larger-scale investment businesses should be promoted for foreigners.
An NA member for Luang Namtha province Ms Bandith Pathoumvanh said the newly-drafted law should identify which jobs should be preserved for Lao nationals.
While welcoming the increase in maternity leave, NA member for Vientiane Dr Sisaliew Savengsuksa expressed concern that the increased holiday entitlement will make enterprises reluctant to recruit women to work for them, notably in production line enterprises.
By Souksakhone Vaenkeo
(Latest Update December 25, 2013)