Title: Monitoring Compliance with the Unemployment Insurance Law in Binh Duong Province between 2013 and 2015. The thesis then uses quantitative methods to examine the factors that influence unemployment insurance compliance of firms in Binh Duong.
The importance of monitoring the Conformity to the Unemployment Insurance Law in Binh Duong
There is also no attention for checking the functioning of the unemployment insurance with the competent authorities, such as the Center for Employment and the Social Insurance Agency. This ineffective monitor of unemployment insurance legislation raises the need for more research to propose appropriate solutions for an effective monitor, especially in the context of Binh Dương.
The background of the topic
Unemployment Insurance Binh Duong Organization lacks law enforcement monitor staff in terms of number and quality. If Unemployment Insurance Organization and the Government do not carry out effective solutions to improve the confirmation of the unemployment insurance law.
Background on Binh Duong province
Unemployment Insurance Policy can be found in many legal documents as follow
Manual guild books by the Job Bureau and the Ministry of Labor-Veterans and Society on the implementation of the unemployment insurance regulation. The number of working labor participating in unemployment insurance, shown in the following table:.
Unemployment regulation in Binh Duong Province
This duration is 6 months if you have between 36 months and less than 72 months of unemployment insurance contributions. The state supports 1% of the salary fund from the budget for unemployment insurance contributions.
Content of the monitoring the conformity to the unemployment insurance law in Binh Duong 20
This duration is 9 months, if you have unemployment insurance contributions from 72 months to less than 144 months. Employees will be entitled to the unemployment insurance regimes on the 16th day from the date of registration with the employment agency when they are unemployed. When a company or employee is suspected of violating the unemployment insurance regulations, the Director of the Provincial Social Insurance Organization makes a decision to carry out a sudden monitor or inspection.
Provincial Social Insurance Organization makes and annually approves monitoring plan for unemployment insurance contribution of companies and employees.
Thesis structure
Unemployment insurance law
Unemployment insurance law conformity
Understanding law conformity
Effectiveness refers to the extent to which a problem has been solved (Versluis, 2007), while conformity is the extent to which the agent follows laws and regulations.
Reasons for non-conformity
Organizational conformity refers to regulatory policy trends (Iterligi 2010) and it is related to alignment with external actors' values and expectations (Carroll & McGregor-Lowndes, 2002; Haines & Gurney, 2003 cited in Iterligi, 2010). In other words, corporate compliance depends to some extent on the norms of external stakeholders. According to the framework in Figure 2, there are three factors that determine compliance culture and compliance outcomes of an organization.
Control style emphasizes how a corporation sets stakeholder expectations in the organization's practice and then influences the behavior of its members (Iterligi, 2010).
Unemployment law conformity monitor
Controlling style emphasizes the way in which a company introduces stakeholders' expectations into the organization's practice and then influences the behavior of its members (Iterligi, 2010). promote compliance with legislation in the field of unemployment insurance. In the context of environmental regulation, Botelho et al. 2005) argued that “the recording of all compliance matters is in a central legal compliance register” (University of Adelaide, p. 3). First, the data source plays the role of a yardstick by which the government decides whether a company is complying with the law or not.
This approach usually refers to the organizational capacity and quality of the officials responsible for the monitor.
Research questions
Hypothesizes
Cost amount and fee for unemployment insurance is appropriate for any business to follow. Social insurance is stable from time to time, no change in a short time. Social insurance has always supported insurance for companies. Of traditional countries, the Labor Union has a great influence in committing the benefit of unemployment insurance.
As a moderated organisation, the Trade Union is a good partner for bringing the Social Insurance Organization and the business community into contact with each other.
Research methodology
Because the sample of 100 is more than 95, the sample size of 100 cadres, employee was enough ability for the factor analysis (EFA). Because the sample of 100 is larger than 90, the sample size of 100 cadre, employee was applicable for the regression analysis. Legal status1 The social insurance policy is stable from time to time, does not change in a short time.
LaborUnion3 As a moderated organization, Labor Union is a good partner to connect social insurance organization and enterprises.
Research data
Data collection
Civil servants1 Depending on the nature of work, civil servants have different perceptions of attending unemployment insurance. Directors of the companies; Directors of Human Resource Management; and Civil Servants in Binh Duong Social Insurance Organization. The research sample includes Binh Duong Social Insurance Organization, Department of Labour, Invalid and Social Affairs; Binh Duong Job Promotion Center, enterprises in Binh Duong.
The questionnaire distribution is 50 employer samples (with 30 from FDI enterprises, 16 from 100% domestic capital enterprises, 4 from government organizations.
Data analysis method
If F is large and p-value < 0.05 "The entire regression equation is statistically significant at the 95% confidence level." If F is small and p-value ≥ 0.05 "The entire regression equation has no statistical significance at the 95% confidence level." If R2 is closer to 1 "Most of the variation in the dependent variable is explained by the regression model and this model is significant and therefore useful" or "The regression equation is very accurate in predicting the value of dependent variable."
If R2 is closer to 0 “Most of the variation in the dependent variable is not explained by the regression model and that model is insignificant and therefore not useful” or “The regression equation is less accurate in.
Research Results
Sample demographic
Descriptive research
- Volume of cost
- The reinforced legal status Social Insurance Organization
- Labor Union and Relevant State Organizations
- IT application
- Profession of public servants
- Dependent Variable- Law compliance monitor
Legal status1 The social insurance policy is stable from time to time, no change in short time. The largest mean value at 3.78 shows "The Social Insurance Organization has always supported policies for businesses." And the smallest one is 3.34 "The social insurance policy is stable from time to time, does not change in a short time". Respondents have the highest score in "As a moderated organization, the Labor Union is a good partner to connect social insurance organization and enterprises" that they need a moderator to have greater faith in social insurance organization.
Descriptive Analysis of the Supervisor of Legislation Factor Civil Servant Occupation N Mean Standard Deviation Legislation 1 Supervisor of Legislation is.
Reliability Test
- Volume of cost
- The reinforced legal status of Social Insurance Organization
- Labor Union and Relevant State Organizations
- IT application
- Profession of public servants
- Dependent Variable- Law compliance monitor
Reliability test of factor of volume of cost Volume of cost Initial Cronbach's alpha Corrected Item-. Reliability analysis for Volume of Costs shows that the internal consistency is good with Cronbach's alpha greater than and all item-to-correlation above 0.5 indicating the high reliability in measurement scale. Reliability analysis for The strengthened legal status Social Insurance Organization shows that the internal consistency is good with Cronbach's alpha greater than and all item-to-correlation above 0.5 indicates the high reliability in measurement scale and no items as deleted are greater than general Cronbach Alpha.
Reliability analysis for the Compliance Monitor has a very high score of Cronbach Alpha- 0.935, the internal consistency is excellence and all item-to-correlations above 0.5 indicate the high reliability of the measurement scale.
Exploratory Factor Analysis (EFA)
- Exploratory Factor Analysis- Independent Variable
- Conclusions about the Validity of the Measurement Scale
Due to independent variables, Volume of costs, The strengthened legal status Social Insurance Organization, Labor Union and Relevant Government Organizations, IT application and Occupation of civil servants, we run SPSS with Dimension Reduction technique for exploring data structure. After performing factor analysis and Varimax rotation method, 5 components were extracted which are respectively the concepts of IT application, Occupation of Civil Servants, Labor Union and Relevant State Organizations, The strengthened legal status Social Insurance Organization, Volume of Costs in the research. model, while all items (observed variables) had a value greater than 0.5. The KMO and the Bartlett's test indicated that the data were suitable for factor analysis.
Occupation of Civil Servants, Labor Union and Relevant State Organizations, The strengthened legal status Social Insurance Organization, Volume of Costs.
Research Model Testing
- Pearson Correlation Analysis
- Regression Analysis
More specifically, the results of the correlation coefficients as shown in the table above refer to the fact that there are significant relationships between the dependent variable LEGISLATIVE COMPLIANCE: Monitoring Legal Compliance and the independent variables. This means that the higher the positive attributes of the independent variables, the more compliance Monitor Law Compliance has. The four independent variables Application of IT, Profession of civil servants, Trade union and relevant state organizations, Strengthened legal status Social insurance organization, had a standardized beta coefficient as ITAPPLICATION = 0.534; LABOR = 0.103, LEGAL STATUS = 0.250, PUBLIC SERVANT = 0.128, but the level of significance is
Three independent variables IT application, occupation of civil servants and relevant state organizations, the social insurance organization enhanced legal status, had a standardized beta coefficient as IT APPLICATION = 0.573; LAW STATUS = 0.268, PUBLIC SERVICE = 0.144.
Conclusions and Judgments about Hypothesis Testing Results
Through the results generated by the reliability, exploratory factor analyses, Pearson correlation analysis and regression analysis, there was a change in the research model for this study.
Short summary of the main results
From the results of the data analysis, the thesis revealed 4 factors affecting compliance with the law in the area of Binh Duong province. In addition, the results of this study are also a reference for further researchers in a similar field. In conclusion, based on these results, local authorities and decision makers may have more information to improve compliance with the law in Binh Duong Province.
This not only contributes to an increase in the national budget, but also improves the standard of living of Binh Duong province as they can get more money to improve medicine, transportation and education for their own province.
Recommendation
- IT Application
- The reinforced legal status Social Insurance Organisation
- Profession of public servants
The government of Binh Duong should strengthen the inspection and investigation of the implementation of unemployment insurance by insurance companies and enterprises. These ministries are obliged to propose amendments and/or additions to the current regulation on the treatment of administrative offenses in the field of unemployment insurance. There is a need to supplement more types of unemployment insurance violations to have.
To adjust the distribution of labor quota to the unemployment insurance agency based on the volume of receipt at each location.
Implication
Strengthen the entrusted activities: entrust the collection of the social security fund to the tax office, entrust unemployment insurance expenses to the Center for Job Service.
Strengths and limitation of the research
4969/QD-BHXH that defines the functions, duties, powers, responsibilities and management regime of the social security service at the provincial level. 99/QD-BHXH that defines the functions, duties, competencies and structural organization of local social security. 2010), Evaluation of the Functioning of Social Security and Health Insurance Funds;. 2012, July), The need to establish the content of social security in the Criminal Code. 2013, January), Strengthening Inspection and Monitoring of Violations of the Law on Social Security.
2014, May), Sanction and power in settling violations of social security contributions – international experience.
