Circular No. 07/2000/TT-BLDTBXH guides certain Articles on labor under Decree No. 103/1999/NĐ-CP dated September 10, 1999 of the Government regarding the transfer, sale, lease, and management contracting of state-owned enterprises.

CIRCULAR

Guidelines for some Articles on labor under Decree No. 103/1999/NĐ-CP dated September 10, 1999 of the Government on transferring, selling, contracting management, and leasing state-owned enterprises

 dated September 10, 1999 of the Government on transferring, selling, contracting management, and leasing state-owned enterprises

Implementing Decree No. 103/1999/NĐ-CP dated September 10, 1999 of the Government on transferring, selling, contracting management, and leasing state-owned enterprises, after soliciting opinions from relevant ministries and sectors, the Ministry of Labor, Invalids and Social Affairs provides guidelines for some Articles concerning policies for workers in state-owned enterprises implementing transfers, sales, contracting management, and leasing as follows:

Workers employed in enterprises at the time of transferring, selling, contracting management, and leasing state-owned enterprises include:

Production facilities under the Vietnam Import-Export Construction Corporation (Ministry of Construction) producing building components and materials for housing sold to households in flood-prone areas in the Mekong Delta on deferred payment terms (as per Decision No. 105/2002/QD-TTg dated August 2, 2002) and to ethnic minority households in place in the Central Highlands provinces on deferred payment terms (as per Announcement No. 144/TB-VPCP dated September 12, 2002 of the Government Office).

a) Workers employed under indefinite-term labor contracts;

b) Workers employed under fixed-term labor contracts;

c) Seasonal workers engaged in specific tasks with a duration of three months to less than one year;

d) Civil servants and employees who have not yet signed labor contracts.

Including workers (as specified in points a, b, and c above) temporarily suspended from performing labor contracts and on leave awaiting work according to the decision of the enterprise's director.

II- WORKING TIME FOR UNEMPLOYMENT BENEFITS AND TO ENJOY PRIVILEGES IS CALCULATED AS FOLLOWS:

1. Working time as stipulated in Clause 3 and Clause 5, Article 10 of Decree No. 198/CP dated December 31, 1994 of the Government detailing and guiding certain provisions of the Labor Code regarding labor contracts.

2. The number of years working for the State as stipulated in Clause 2, Article 13 of Decree No. 103/1999/NĐ-CP of the Government is the time workers have worked for state-owned enterprises, state agencies and units, and military forces, excluding time when workers received unemployment benefits, job loss benefits, or discharge or demobilization benefits.

Calculation of working time as stipulated in Clause 3, Article 10 of Decree No. 198/CP dated December 31, 1994 of the Government detailing and guiding certain provisions of the Labor Code regarding labor contracts.

3. Working time counted for sharing surplus welfare funds as stipulated in Clause 3, Article 19; Point e, Clause 1, Article 49; Clause 1, Article 53 of Decree No. 103/1999/NĐ-CP of the Government is the time workers have worked at the enterprise until the decision to transfer, sell, or lease the state-owned enterprise is made. Calculation of working time as stipulated in Point d, Clause 3, Article 10 of Decree No. 198/CP dated December 31, 1994 of the Government detailing and guiding certain provisions of the Labor Code regarding labor contracts.

III- CLASSIFICATION OF WORKERS AND USE OF WORKERS:

1. Classification of workers and use of workers at the time of transferring, selling, contracting management, and leasing enterprises as stipulated in Clause 3, Article 12; Clause 5, Article 18; Clause 4, Article 38; Clause 1, Article 40 of Decree No. 103/1999/NĐ-CP dated September 10, 1999 of the Government, as follows:

a) The number of workers in the enterprise at the time of transferring, selling, contracting management, and leasing enterprises is classified and recorded in the summary table attached to this Circular.

b) Each type of worker as specified in point a above is listed in detail to resolve benefit issues.

2. The plan for using workers as stipulated in Point b, Clause 5 and Point a, Clause 7, Article 16; Clause 1, Article 21; Point c, Clause 5, Point a, Clause 7, and Point a, Clause 8, Article 36; Clause 1, Article 12; Point d, Article 42 of Decree No. 103/1999/NĐ-CP dated September 10, 1999 of the Government is established by the transferee, buyer, contractor, or lessee based on the development direction of the enterprise but must ensure the rights and obligations of both parties (employer and employee) as prescribed by labor laws.

IV- BENEFITS TO BE ENJOYED:.

1. In cases where the enterprise reorganizes production and business activities or changes technology leading to job losses for workers as stipulated in Clause 5, Article 14 of Decree No. 103/1999/NĐ-CP of the Government, the enterprise pays job loss benefits to workers as stipulated in Clause 1, Article 17 of the Labor Code. For workers with service time before the transfer of the enterprise, that period will be entitled to termination benefits as stipulated in Clause 1, Article 42 of the Labor Code; funding sources and payment procedures are regulated by Decision No. 177/1999/QĐ-TTg dated August 30, 1999 of the Prime Minister and guidance from the Ministry of Finance.

2. Benefits for workers as stipulated in Clause 1, Clause 2, and Clause 5, Article 21; Clause 1, Clause 2, Clause 3, and Clause 4, Article 40 of Decree No. 103/1999/NĐ-CP dated September 10, 1999 of the Government are resolved as follows:

a) For workers eligible for retirement according to the pension system, the enterprise director and the social insurance agency where the enterprise pays social insurance (hereinafter referred to as the social insurance agency) shall complete all necessary procedures and resolve benefits according to current regulations.

b) For workers terminating their labor contracts (including those voluntarily terminating their labor contracts), the policy for workers is resolved as follows:

- The enterprise director is responsible for paying termination benefits to workers for the time they have worked at the enterprise as stipulated in Clause 1, Article 42 of the Labor Code and Decree No. 198/CP dated December 31, 1994 of the Government.

- For the time prior to that when workers have worked for the state sector without receiving termination benefits or job loss benefits, it is counted towards receiving termination benefits. Funding sources and payment procedures are regulated by Decision No. 177/1999/QĐ-TTg dated August 30, 1999 of the Prime Minister and guidance from the Ministry of Finance.

- The enterprise director and the social insurance agency along with related agencies are responsible for completing all necessary procedures to issue social insurance books, pay social insurance benefits, labor books, and other related documents according to current regulations.

c) For workers transferring to new enterprises, the enterprise director and related agencies shall complete all necessary procedures and hand over to the new enterprise.

c) For workers transferring to work at a new enterprise, the director of the enterprise and relevant agencies shall complete all procedures and transfer to the new enterprise.

V- IMPLEMENTATION:

1. The Director of the enterprise and the Enterprise Reform Board shall be responsible for organizing the implementation of policies concerning employees in accordance with Decree No. 103/1999/NĐ-CP dated September 10, 1999 of the Government and this Circular; and reporting on the results of implementation to the Department of Labor, Invalids and Social Affairs, the Enterprise Management Reform Board under the Ministries, sectors, provinces, centrally governed cities, and State-owned Enterprise No. 91.

2. The Department of Labor, Invalids and Social Affairs, the Enterprise Management Reform Board under the Ministries, sectors, provinces, centrally governed cities, and State-owned Enterprise No. 91 shall be responsible for guiding, monitoring, and inspecting the implementation of legal provisions concerning employees, and compiling the situation to report to the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance.

3. This Circular shall take effect from the date of signature.

During the course of implementation, if there are any difficulties, they should be reflected to the Ministry of Labor, Invalids and Social Affairs for research and resolution.

Name of the enterprise:

MODEL FOR CLASSIFYING EMPLOYEES AT THE TIME OF DECISION BY THE AUTHORIZED BODY TO IMPLEMENT THE TRANSFER, SALE, CONTRACT MANAGEMENT, OR LEASE OF STATE ENTERPRISES IN ACCORDANCE WITH CIRCULAR NUMBER …/LĐTBXH

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