Joint Circular No. 06/2009/TTLT-BLDTBXH-BTC guides the implementation of Decision No. 30/2009/QD-TTg dated February 23, 2009, of the Prime Minister on supporting workers who lose their jobs in enterprises facing difficulties due to economic downturn.

JOINT CIRCULAR

Guidelines for Implementing Decision No. 30/2009/QD-TTg dated February 23, 2009 of the Government on Support for Workers Losing Their Jobs in Enterprises Affected by Economic Downturn

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Pursuant to Decision No. 30/2009/QD-TTg dated February 23, 2009 of the Prime Minister on support for workers losing their jobs in enterprises affected by economic downturn (hereinafter referred to as Decision No. 30/2009/QD-TTg), the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance provide guidelines for implementation as follows:

I. APPLICABLE OBJECTS

The applicable objects of this Circular are enterprises and workers as stipulated in Article 1, Article 2, and Article 3 of Decision No. 30/2009/QD-TTg.

II. ENTERPRISES IN DIFFICULTIES IN 2009 ARE ENTITLED TO BE LOANED BY THE STATE TO PAY WAGES AND SOCIAL INSURANCE CONTRIBUTIONS FOR WORKERS:

In 2009, enterprises affected by economic downturn shall be entitled to be loaned by the State to pay wages, social insurance contributions, and severance benefits or termination allowances for workers as prescribed in Article 1 of Decision No. 30/2009/QD-TTg, implemented as follows:

1. Borrowers must meet the following conditions:

a) Enterprises affected by economic downturn belonging to various economic sectors that are unable to pay wages, social insurance contributions, and severance benefits or termination allowances for laid-off workers.

b) Enterprises with a reduction in workforce of 30% or more, or 100 workers or more (excluding temporary workers with a term of less than three months).

The number of workers to be reduced from the enterprise is the number of workers listed in the payroll of the enterprise who need to be reduced in 2009, including: workers who are Vietnamese citizens currently performing indefinite-term labor contracts; fixed-term labor contracts from twelve to thirty-six months; seasonal or specific job labor contracts with a term of at least three months.

The time point for calculating the number of workers to be reduced is the time when the enterprise formulates the labor adjustment plan.

c) Enterprises have utilized all available resources but still cannot pay wages, social insurance contributions, and severance benefits or termination allowances. Resources of the enterprise to pay these amounts include: the unemployment compensation reserve fund, wages due to workers including the wage reserve fund, and funds allocated for social insurance contributions but not yet paid to the social insurance agency.

2. Loan period: up to twelve months.

3. Loan amount: determined by the need to repay wages, social insurance contributions, and severance benefits or termination allowances for laid-off workers minus the resources of the enterprise already identified in paragraph c of point 1 of this Section, but the maximum loan amount equals the funding required to pay off wages, social insurance contributions, and severance benefits or termination allowances owed to laid-off workers of the enterprise.

4. Interest rate on loans: 0% (zero percent).

5. Procedures for borrowing: Implemented according to the guidance of the Vietnam Development Bank and accompanied by confirmation documents regarding the labor adjustment plan issued by the Department of Labor, Invalids and Social Affairs, and confirmation documents from the Department of Finance regarding the declaration and utilization of the resources specified in paragraph c of point 1 of this Section.

The enterprise is responsible for coordinating with the grassroots trade union organization to develop a labor adjustment plan, including the current number of workers, the number of workers needed, the number of workers settling social insurance benefits, expiring labor contracts, and the number of workers unable to find employment, according to Model No. 1 attached to this Circular, and submit it to the Department of Labor, Invalids and Social Affairs of the locality where the enterprise's headquarters is located. Within five working days from the date of receipt of the request for confirmation of the plan, the Department of Labor, Invalids and Social Affairs must issue a confirmation letter sent to the enterprise and the Branch of the Vietnam Development Bank in the locality. During the implementation of the labor adjustment plan that has been reviewed, if there are changes, a report must be submitted to the Department of Labor, Invalids and Social Affairs and the Branch of the Vietnam Development Bank regarding the changed contents.

The enterprise is responsible for submitting the most recent quarterly financial report of the enterprise and reports on the enterprise's resources to the Department of Finance of the locality where the enterprise's headquarters is located; within five working days from the date of receipt of the request for confirmation of the financial report and the aforementioned resources, the Department of Finance must issue a confirmation letter sent to the enterprise and the Branch of the Vietnam Development Bank in the locality.

6. The Vietnam Development Bank decides on the loan amount and implements lending, debt collection, and debt resolution according to its authority.

7. Payment of wages, social insurance contributions, and severance benefits or termination allowances for workers after receiving a loan:

a) Within seven working days from the date of receipt of the notification from the Branch of the Vietnam Development Bank regarding the loan, the enterprise is responsible for jointly with the Branch of the Vietnam Development Bank to make a one-time payment of wages, severance benefits, or termination allowances to each worker and pay social insurance contributions to the social insurance agency according to the reviewed plan.

b) Within fourteen working days from the date of receipt of the notification from the Branch of the Vietnam Development Bank regarding the loan, the enterprise is responsible for reporting to the Department of Labor, Invalids and Social Affairs of the locality where the enterprise's headquarters is located about the payment to workers according to Model No. 2 attached to this Circular.

III. POLICY IMPLEMENTATION FOR WORKERS WHO LOST THEIR JOBS AT ENTERPRISES WHERE THE BUSINESS OWNER HAS EVASIVE BEHAVIOR IN 2009

Implementation of policies for workers who lost their jobs at enterprises where the business owner has evasive behavior as prescribed in Article 2 of Decision No. 30/2009/QD-TTg, implemented as follows:

1. An enterprise with a missing business owner is an enterprise without a legitimate representative to address the rights of workers and is determined by the People's Committee of the province or an agency authorized by the People's Committee of the province.

The Chairman of the People's Committee of the province directs the Department of Planning and Investment to coordinate with relevant agencies to identify enterprises with missing business owners and to establish files on labor, wages, and finances of such enterprises.

2. Paying outstanding wages owed to workers:

a) Based on the file of enterprises with missing business owners, referring to accounting records and related documents, the Department of Labor, Invalids and Social Affairs shall cooperate with the Department of Finance to determine which workers are listed for wage payments by the enterprise, specifically identifying the outstanding wages owed to each worker.

b) The Department of Labor, Invalids and Social Affairs shall report to the Chairman of the People's Committee of the province the amount required to be advanced from the local budget to pay off workers' wage debts, along with a list of wage arrears for each worker for the Chairman of the People's Committee of the province to decide on advancing the local budget to pay workers in advance.

c) The Chairman of the People's Committee of the province shall instruct the Department of Labor, Invalids and Social Affairs to receive temporary advances from the local budget to organize the payment of wage debts to workers and to report to the People's Committee of the province. Assign the Department of Planning and Investment to coordinate with the Department of Finance to handle the assets of the enterprise to repay the temporary advance from the local budget.

IV. LOANS FOR VOCATIONAL TRAINING, SELF-EMPLOYMENT, AND LABOR EXPORT FOR WORKERS WHO HAVE LOST THEIR JOBS IN 2009

 IN 2009

Workers who lost their jobs in 2009 are eligible for loans according to Article 3 of Decision No. 30/2009/QĐ-TTg, implemented as follows:

1. Eligible borrowers are workers who lost their jobs in 2009 as stipulated in Articles 1 and 2 of Decision No. 30/2009/QĐ-TTg (including Vietnamese workers employed abroad under contracts who lost their jobs and had to return before the term).

2. Loan policies:

a) Eligible to borrow from the National Employment Fund under the National Target Program on Employment to create self-employment.

b) Eligible to borrow to undergo vocational training according to Decision No. 157/2007/QĐ-TTg dated September 27, 2007, of the Government Prime Minister regarding credit for students and trainees for up to 12 months from the date the worker lost their job.

c) Eligible to borrow from the Vietnam Social Policy Bank as prescribed for policy targets in Decision No. 365/2004/QĐ-NHNN dated April 13, 2004, of the State Bank of Vietnam for up to 12 months from the date the worker lost their job or returned to the country.

3. Procedures and documentation for loan application:

- Loan procedures follow current regulations;

- Loan documentation: in accordance with current regulations and accompanied by copies of employment contracts, copies of contract termination agreements; for workers who lost their jobs and had to return to the country before the term of their overseas contracts, copies of the labor export contracts or individual contracts and confirmation from the exporting enterprise or the registration authority must also be provided.

V. IMPLEMENTATION

1. Responsibilities of the Provincial People's Committee:

The People's Committee of the province directs the Department of Planning and Investment, the Department of Labor, Invalids and Social Affairs, the Department of Finance, and local functional agencies to implement the provisions of this Circular.

2. Responsibilities of the Department of Labor, Invalids and Social Affairs:

a) To take the lead and coordinate with relevant agencies to publicize policies and benefits for workers and to carry out tasks as prescribed in this Circular.

b) To organize the tracking of laid-off and unemployed workers in enterprises facing difficulties due to economic downturns and quarterly report to the Ministry of Labor, Invalids and Social Affairs using Form No. 3 issued with this Circular before the 5th day of the first month of each quarter.

c) To monitor and supervise the payment of wages, unemployment allowances, or severance pay to each worker and the payment of social insurance premiums to the social insurance agency according to the approved plan.

d) To direct job introduction centers and vocational training institutions to effectively provide vocational training, counseling, and job placement services for unemployed workers.

đ) To quarterly report on the implementation of support measures for workers who have lost their jobs in enterprises affected by economic downturns using Form No. 4 issued with this Circular before the 5th day of the first month of each quarter.

3. Responsibilities of the Department of Finance:

a) To guide enterprises to comply with the provisions of this Circular.

b) To quarterly report to the Ministry of Finance on the implementation of loans and advances from the local budget to pay workers the outstanding wages owed by enterprises.

4. Responsibilities of the Vietnam Development Bank:

a) To guide enterprises on loan procedures; to mobilize and organize lending, debt collection, and handling according to this Circular and the lending regulations of the Vietnam Development Bank.

b) To quarterly report to the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance on the implementation of lending using Form No. 5 issued with this Circular before the 5th day of the first month of each quarter.

5. Responsibilities of the Vietnam Social Policy Bank:

a) To mobilize and organize lending according to this Circular.

b) To guide on loan procedures.

c) To quarterly report to the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance on the implementation of lending using Form No. 6 issued with this Circular before the 5th day of the first month of each quarter.

6. This Circular takes effect from the date of signature.

During implementation, if there are any issues, please reflect them to the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance for research and resolution./.