The Formal Regulation of Non-Standard Forms of Employment in India, Indonesia and Vietnam Ingrid Landau Petra Mahy Richard Mitchell

Formal ‘Standard’ Employment Formal ‘Non-Standard’ Employment Self Employment, Informal Employment

Nature and Prevalence of Non-Standard Employment Labour statistics rarely use legal employment categories Substantial and increasing proportions of the workforce in non-standard employment – Temporary work – Agency work – Home-based work

History of ‘Non-Standard’ Employment Regulation India: lengthy history of contract labour, since early 1970s. Deregulation/liberalisation of restrictions through State amendments. Indonesia: mid-1980s restrictions on fixed-term contracts. From 2003 allowance of outsourcing. Trend towards more detailed restrictive regulation. Viet Nam: relatively recent, clear trend towards greater recognition and regulation of non- standard employment.

Content of ‘Non-Standard’ Employment Regulation Significant degree of similarity – especially with regards to fixed-term contracts and agency work Less coherence with regards to regulation of casual, part-time and home-work Non-Standard employment in the public sector

India Right/ standardPermanent employeeCasual employeeFixed-term employeeAgency worker Freedom of association & collective bargaining ✔✔✔✔ Anti-discrimination /equal employment opportunity ✔✔✔✔ Prohibition on child labour ✔✔✔✔ Prohibition on forced labour ✔✔✔✔ Explicit right to equal treatment with permanent employees n/a ✖✖✔ Occupational health and safety ✔✔✔✔ Workers’ compensation ✔✔✔✔ Social security (social insurance; health insurance; unemployment insurance) ✔ ✔ ✔ ✔ Minimum wage ✔✔✔✔ Protection against termination of employment ✔ subject to minimum service threshold ✖✔ with direct employer, and subject to minimum service threshold Protections on working hours ✔✔✔✔ Leave ✔ subject to minimum service threshold

Indonesia Right/ standardPermanent employee Fixed-term employee Casual day labourer Agency worker Sub-contracted worker Freedom of association & collective bargaining ✔ ✔ ✔ ✔ (with direct employer only) ✔ (with direct employer only) Anti-discrimination /equal employment opportunity ✔ ✔ ✔ ✔ ✔ Prohibition on child labour ✔ ✔ ✔ ✔✔ Prohibition on forced labour ✔ ✔ ✔ ✔✔ Explicit right to equal treatment c/f standard employees n/a ✖ ✖ ✔ ✔ Occupational health and safety ✔ ✔✔ ✔✔ Workers’ compensation ✔ ✔✔ ✔✔ Social security ✔ Accident & death benefits schemes only. Health & retirement schemes subject to minimum service threshold. Accident insurance & death benefits schemes only. ✔ ✔ Minimum wage ✔ ✔✔ ✔✔ Protection against termination of employment ✔ ✖ (but right to compensation where contract terminated by employer prior to expiry). ✔ ✔ Protections on working hours ✔ ✔✔ ✔✔ Paid annual leave ✔ subject to (12 month) minimum service threshold ✖ ✔ ✔ Annual holiday bonus (Tunjangan Hari Raya) ✔ subject to (3 month) minimum service threshold ✖ ✔ ✔

Vietnam Right/ standardIndefinite -term (permanent employees) Definite-term employeesSeasonal or job-specific employees Agency workerPart-time employee Freedom of association & collective bargaining ✔ Only for workers on labour contracts of 6 months or more Only for workers on labour contracts of 6 months or more ✔ ✔ Anti-discrimination /equal employment opportunity ✔ ✔ ✔ ✔ ✔ Prohibition on child labour ✔✔✔ ✔✔ Prohibition on forced labour ✔✔✔ ✔✔ Explicit right to equal treatment c/f standard employees n/a ✖ ✖ ✔ ✔ Occupational health and safety ✔ ✔ ✔ ✔ ✔ Workers’ compensation ✔✔✔ ✔✔ Social security ✔ Subject to three month service threshold ✔ ✔ ✔ Minimum wage ✔✔✔ ✔✔ Termination of employment protection ✔ ✔ With some variation. Entitlement to severance pay subject to minimum service threshold ✔ ✔ Protections on working hours ✔✔✔ ✔✔ Leave ✔ ✔ ✔ Subject to three month service threshold ✔ ✔

‘Non-Standard’ Employment in Practice Widespread non-compliance with legal restrictions ‘Circulating’ and ‘churning’ workers Evidence of gaps in wage and working conditions between standard and non-standard workers