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Letter from the table · RC/TM/2026/T.20

The first hire is not a number

From Hanoi, Hải Hồ supports making formal hiring easier but opposes using a business’s first-ten-hires count as the main test for relief.

Hải HồContributor · Team Council · VietnamHanoi, Vietnam
Team22 May 2026Opposes
3 pages · US Letter

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Team Council

RC/TM/2026/T.20published

The first hire is not a number

Letter from the table · 22 May 2026

To the Team Council,

I write this as a translation of what owners in my language community are saying, and from my own experience in Hanoi. I support the purpose of TM-001: a small employer should be able to hire formally without feeling that the first employment contract opens a door into costs and procedures they cannot manage. But I oppose making “the first ten hires” the central rule for deciding who receives help. The number sounds simple from outside. In a small business, it can describe very different situations.

The month I hired

On 12 February 2025, I decided I could no longer do every task alone. I had waited because a regular salary was not the only cost I needed to plan for. I wanted to make a proper employment arrangement, not rely on an informal understanding that would leave both of us uncertain.

The person began work on 3 March. We agreed on a gross monthly salary of VND 8,000,000. The job was in Hanoi, in Region I. The regional minimum wage there had been VND 4,960,000 a month since 1 July 2024. I checked that our agreed salary was above it, then asked a bookkeeper to walk me through what came next. I had to plan for the employer’s contributions as well as the salary: social insurance, health insurance and unemployment insurance. At the ordinary rates, the employer-side amounts on VND 8,000,000 came to about VND 1,720,000 a month, before the time and cost of administering payroll. That is a real obligation, not a complaint that the worker should receive less.

I also had to assemble the employment and payroll details and make sure the worker was registered through the relevant social-insurance process. I needed to understand how the payroll figures connected to tax and the records I would keep. The rules serve

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Team CouncilRC/TM/2026/T.20 · Continued

important purposes. My difficulty was not that there should be no rules; it was that I had to become a small payroll office while still learning how to be an employer.

On 28 February, before the first working day, I reviewed the expected monthly outlay again. I had first thought of VND 8,000,000 as the cost. After adding the employer contributions, I understood that the recurring employment cost was already roughly VND 9,720,000, not counting the work of getting the records right. I could afford it, but only by adjusting other spending and keeping a close reserve. If the first month had been slower, the calculation would have been much harder.

What would help—and what I oppose

A one-stop payroll registration process would have helped me. So would a clear calculation that showed, in one place, the gross wage, employer contributions, employee deductions and payment dates. A phone-friendly system in Vietnamese, with a real way to correct a mistake, would be more useful to a first-time employer than another guide written as if the reader already had an accounts department.

I am not persuaded that a first-ten-hire threshold is the right foundation for relief. An employer with two workers may have a larger contribution burden relative to cash flow than an employer with nine. A business hiring its eleventh person may still be small, while another employer’s first ten hires may be made over a much longer period and under very different conditions. If support ends abruptly at a headcount boundary, the rule can encourage people to delay a hire or divide work in ways that do not improve anyone’s security.

There is also a difference between reducing paperwork and reducing the cost of protection. I do not want a standard that makes formal hiring cheaper by weakening a worker’s social insurance or shifting a contribution onto the worker without saying so plainly. Those protections are part of what makes a job more secure. The aim should be to make it feasible for small employers to provide them.

My position is therefore opposition to TM-001 as currently framed around the first ten hires—not opposition to helping small employers hire formally. I ask the Council to design relief around the burden and the transition into formal employment, rather than a single lifetime count of workers. Any contribution reduction should be transparent,

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Team CouncilRC/TM/2026/T.20 · Continued

time-limited or tapered rather than ending at a cliff, and should not reduce the worker’s entitlement. Pair it with one-stop registration, a plain-language cost calculator and direct help for a first payroll. Please test those options with owners who have one or two employees as well as those approaching ten.

When I hired, the salary was the promise I made to another person. The contributions and registration were the structure that made the promise more secure. The right fix should make that structure easier to enter, not imply that a business becomes less deserving of help after its tenth hire.

Respectfully,

Hải HồContributor · Team CouncilHanoi, Vietnam

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Replies 4

Celia Carrillo Quintero Puebla, Mexico · 24 May 2026

I agree that a headcount threshold can miss what is happening inside a small business. In Puebla, I have seen a very small operation with a steady stream of work and another with the same number of workers but irregular income and little room for a surprise bill. When I was planning a formal hire, the question was not simply whether I had crossed a number; it was whether I could keep paying reliably through a slow month. I would rather see relief tied to transparent conditions such as payroll size or cash-flow capacity. How would the proposal prevent those measures from becoming another complicated application?

Leïla Mokrani Marseille, France · 27 May 2026

I understand the objection to treating the first ten hires as a universal measure. From my experience in Marseille, a business’s headcount does not tell the whole story: a tiny new employer may have unstable revenue, while a larger one may have predictable costs and dedicated administrative help. Still, I would be cautious about replacing a simple threshold with a detailed means test. I have watched complicated eligibility rules consume the time and confidence the relief is meant to protect. Could the council retain a straightforward entry rule, then taper support gradually rather than ending it abruptly at hire ten?

Michael O'Connell Toronto, Canada · 31 May 2026

I agree that “ten hires” can sound precise while telling us very little about a firm’s ability to absorb payroll costs. In Toronto, I have found that the first formal employee brings a different kind of responsibility from adding another person to an established payroll. I would support relief that recognizes the transition into formal employment, but I would not want a business to lose support just because it reaches a count while still learning the process. A gradual phase-out seems fairer to me. Could the council also publish cases for businesses with seasonal revenue, so owners can tell how the rule works in practice?

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RC/TM/2026/OP.2 — A view on the shape of TM-001

Sophie Delattre argues that a future first-hire standard should pair phased employment contributions with one-stop registration and predictable rules, while protecting workers and public revenue.

Sophie Delattre · 21 October 2026Read →
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