Circular No. 07/TT provides explanations and guidelines for the rational arrangement and utilization of cadres, workers, and civil servants through organizational adjustments in production and the implementation of administrative streamlining.

CIRCULAR

OF THE MINISTER OF LABOUR NO. 07/LĐ-TT
DATE 1 MARCH 1975 EXPLAINING AND GUIDING ON THE
ARRANGEMENT AND RATIONAL USE OF WORKFORCE OF OFFICIALS, WORKERS, AND STAFF THROUGH ORGANIZATIONAL REVIEWS AND SIMPLIFICATION OF MANAGEMENT STRUCTURES IN THE STATE SECTOR

On December 31, 1974, the Council of Ministers issued Decision No. 292-C P supplementing certain policies to arrange and rationally utilize the workforce of officials, workers, and staff through organizational reviews and simplification of management structures in the state sector.

The Ministry of Labour explains the policy, regulations, and scope of implementation of the above-mentioned decision of the Council of Ministers.

I - REGIME FOR LABOUR UNABLE TO BE PLACED IN PRODUCTION LINES AT STATE ENTERPRISES AND FOR SURPLUS OFFICIALS AND STAFF THROUGH IMPLEMENTATION OF MANAGEMENT STRUCTURE SIMPLIFICATION
Decision No. 292-C P clearly states the direction for arranging and utilizing labour unable to be placed in production lines at state enterprises and for surplus officials and staff through the implementation of management structure simplification in the state sector: it must fully leverage potential, expand production and business to make full use of existing labour "without leaving anyone with the ability to serve without being arranged work".
Relevant sectors and localities need to thoroughly grasp the above policy, fully utilize all capabilities within their sectors and localities to expand production and arrange work for every official, worker, and staff member still capable of working, while educating officials, workers, and staff members to strictly comply with work transfer orders. Only on this basis can the implemented regulations be correctly applied.
IN THE STATE SECTOR

Below, the Ministry of Labour provides additional guidance on specific points:

1- For temporary labour without continuous employment due to enterprise shortages of electricity and raw materials, the head of the unit, the main managing industry, should arrange work locally. If the new job pays more than the old salary, the worker will receive the new salary during the temporary work period. If the new salary is lower than the old one, they will retain the old salary grade. In exceptional cases where work cannot be arranged, the wage stoppage regime as stipulated in Point 1, Section II of Circular No. 11-LĐ/TT dated April 11, 1962 of the Ministry of Labour shall apply. The time for receiving wage stoppage shall not be prolonged.

2- For those surplus due to rationalization of production, application of new technology, and management structure simplification:

a) Adjustment:

The head of the unit, the main managing industry (ministry, General Department), and the locality (Administrative Committee of the province, city) must find ways to adjust work within their units, industries, and localities primarily. In cases where adjustments cannot be made entirely, the ministries and General Departments will consult with the Ministry of Labour and the local labour authority (if there are enterprises under the industry in the locality) to resolve the surplus labour in the production and material sector, and consult with the Government's Organizational Board to resolve the surplus officials and staff in the non-production and material sector. Those needing to be adjusted to other industries must be individuals still capable of participating in production and work, having relatively normal health, complying with work transfer orders, and recruited according to regulations within the assigned manpower quota. The number of people needing adjustment must be recorded in the manpower plan of each industry (where there is surplus, reduction must be made, where there is shortage, acceptance must be made) and based on that, the Labour Departments and Government Organization Boards will urge implementation. In special cases where self-adjustment is not possible, each industry and locality need to compile lists and send them to the labour authorities or government organization boards rather than individual enterprises or workers directly contacting these authorities.

Workers transferred to new jobs will have their salaries adjusted based on the new position. If the new salary is higher than the old one, they will receive the new salary. If it is lower, they will receive a differential allowance to equalize the old salary grade until conditions allow for a higher salary adjustment. This differential allowance will be accounted for outside the cost of production or circulation expenses according to current regulations.

If someone has been arranged a job suitable for their health and profession but voluntarily requests another job, they will be paid according to the new job and will enjoy regional allowances according to the new location. If the new salary is lower, they will not receive a differential allowance.

Officials, workers, and staff transferred from state management bodies overseeing production and business management, enterprise management, or public service units to direct production or construction work, etc., will retain their original salary (salary grade including regional allowance if the new place does not have a regional allowance or if the regional allowance is lower) until conditions allow for a higher salary adjustment.

If there is a requirement for training or supplementary education and someone meets the criteria for attending such training or supplementary education, they will be entitled to living expenses according to current regulations.

Those who have undergone treatment and recuperation but whose health has not recovered, and who are no longer able to work continuously, but do not yet meet the current criteria for retirement due to loss of working capacity (i.e., not losing 70% of working capacity for ordinary work, or 60% for particularly arduous work), the enterprise and the main managing industry or locality will arrange work suitable for their health or contact the Labour Departments (where there are enterprises of the industry) to resolve work placement.

If there is a training or supplementary training requirement and there is someone who meets the criteria to attend such training or supplementary training, they shall be entitled to the current subsistence allowance regime.

Those who have undergone treatment or convalescence but their health has not recovered, they are no longer capable of continuous work, yet do not meet the current criteria for taking leave due to loss of strength (meaning they have not lost 70% of their working capacity for those engaged in normal work, or 60% for those engaged in particularly arduous work), then the enterprise or the local industry's main management body shall arrange suitable employment according to their health condition, or contact the Department of Labor (where the enterprise of the industry is located) to resolve employment issues.

b) Unemployment: For those individuals who have the ability to participate in production and work but temporarily cannot be assigned jobs, during the waiting period, they shall be subject to the wage payment system when work is suspended according to Circular No. 11-LĐ/TT dated April 14, 1962, issued by the Ministry of Labor. The maximum duration for receiving unemployment wages is three months. During this time, units, sectors, and localities must actively and urgently adjust work assignments for these individuals. If they cannot self-adjust, then they must prepare a list and submit it to the Ministry of Labor (or the Department of Labor of the provincial People's Committee) or the Government Organizational Department (or the Organizational Department of the Administrative Committee of cities and provinces) in accordance with Directive No. 308/TTg dated December 16, 1974, issued by the Prime Minister (Section V, Point 5).

c) Resignation due to poor health: Those individuals who, after treatment and recuperation, still do not recover their health and are unable to work continuously, and who have actively sought every possible means without finding employment, may be allowed to resign due to poor health. The retirement allowance for resignation due to poor health shall be applied according to Point 3, Article 1 of Decree No. 163/CP dated July 4, 1974, issued by the Council of Ministers; for each year of service, one month's salary will be provided, including regular allowances and child subsidies (if applicable), with no maximum limit, and no additional allowance for poor health. The calculation of the allowance and other benefits will still follow Sections II and III of Circular No. 17/LĐ-TT dated November 9, 1964, issued by the Ministry of Labor to guide Circular No. 88-TTg of the Prime Minister regarding the retirement allowance system. The funds for the retirement allowance will be taken from the unit's salary fund. Other cases of resignation will still be applied according to Circular No. 88-TTg dated October 1, 1964, issued by the Prime Minister.

It should be noted that under no circumstances can workers and officials be allowed to resign during their leave, pregnancy close to delivery, maternity leave, or sick leave while still undergoing treatment (Article 17 of the Recruitment and Resignation Regulations for State Officials, Workers, and Staff issued in Decree No. 24/CP dated March 13, 1963, by the Council of Ministers).

II- REGARDING STATE OFFICIALS, WORKERS, AND STAFF MOVED FROM THE LOWLAND TO WORK IN NEW ECONOMIC ZONES,
IN MIDLAND AND MOUNTAINOUS REGIONS

While awaiting comprehensive regulations for state officials, workers, and staff working in mountainous regions, the Council of Ministers has issued certain preferential policies (Points 5 and 6 of Decision No. 292/CP) for workers and staff moved from lowland areas to work in new economic zones in midland and mountainous regions to implement Decision No. 129-CP dated May 25, 1974, of the Council of Ministers, the Ministry of Labor provides additional guidance on some points:

1- For state officials, workers, and staff moved from lowland areas within the province or another province to work in new economic zones in midland and mountainous regions established by the central and local governments according to government decisions:

a) An initial subsidy of 50đ for officials, workers, and staff, and a one-time subsidy of 30đ for accompanying families, replacing the previously stipulated allowances in Point 1, Section II of Circular No. 4-TT/LĐ dated February 23, 1962, issued by the Ministry of Labor and the Ministry of Interior regarding allowances for relocation for state officials, workers, and staff when transferred to work in forested mountainous areas, border regions, and islands.

In the case where both spouses are state officials, workers, or staff moved to work in new economic zones in midland and mountainous regions, each person will receive the initial subsidy at the rate for a single individual.

Whether bringing the family along once, multiple times, together, or separately, only a one-time subsidy of 30đ will be provided.

Cases of transfer not falling under the objects specified in Points 5 and 6 of Decision No. 292-CP of the Council of Ministers will still apply according to Circular No. 4-TT/LB mentioned above.

b) Encouragement allowance of 6% of the monthly rank salary or position salary if working in midland areas, and 15% if working in high mountainous areas (the list of low mountains and high mountains has been determined in Circular No. 4-TT/LB of the Ministry of Labor and the Ministry of Interior dated February 23, 1962). This encouragement allowance will only be enjoyed during the actual working period in new economic zones in midland and mountainous regions and will be paid at the end of the month. In cases where they are sent to study, travel, or work, or are treated for illness or recuperation, both domestically and abroad, for one month or more (30 days), they will continue to enjoy this allowance. If it exceeds one month, the allowance will be cut until the worker or staff member returns to work.

In cases where state officials, workers, or staff are moved from lowland areas to work in new economic zones in midland and mountainous regions and are subsequently dispatched to strengthen cooperatives, they will only receive the aforementioned encouragement allowance. (This encouragement allowance will not be combined with the encouragement allowance for cooperatives to be discussed in Section III).

c) Regarding train, bus, and transportation fees, baggage handling fees, and food expenses during travel, according to current regulations, specifically:

For the individual:

- Travel allowance like going on business trips;

- Train, bus, or other transportation fees (such as boats, speedboats... in places without trains or buses), baggage handling fees up to 70 kg (including transportation fees for moving luggage from the old residence to the station, port, bus stop, and from the station, port, bus stop to the new residence), bicycle or motorcycle transportation fees (if applicable).

For the family:

Each member of the accompanying family will be provided:

- Train, bus, or other transportation fees in places without trains or buses, and average baggage handling fees per person not exceeding 30 kg;

- Each person, each day of travel will be subsidized 0.60đ. Families left behind and moving later will also be provided with train, bus, baggage handling fees, and food expenses during travel as above.

d) Members of the family accompanying state officials, workers, and staff moved from lowland areas to work in new economic zones in midland and mountainous regions will enjoy one-time subsidies for building private homes, train, bus, baggage handling fees, and food expenses during travel, including the spouse, children (including adopted children, stepchildren), parents, and other relatives whom the state official, worker, or staff member must directly support.

d) The former agency or enterprise shall pay the initial allowance, lump-sum allowance, travel expenses for train, bus, baggage fees, and food allowances for the individual and their family, and record the amount paid on the official order. The agency or enterprise where the cadre is transferred to shall base its additional payment or recovery on the actual expenditure according to the regulations and compare it with the amount recorded by the former agency or enterprise on the official order, without transferring funds back to the former agency or enterprise.

2- For students graduating from secondary schools and vocational universities during their probationary period.

a) The provisions stipulated in Point 6 of Decision No. 292-CP of the Council of Ministers shall only apply to those who are transferred from the lowlands to serve their probationary period or work in new economic zones in the midlands and mountainous regions, including those who come for their probationary period at cooperatives within the scope of new economic zones in the midlands and mountains.

b) They shall be entitled to travel expenses, baggage fees, food allowances during travel, and shall enjoy standards for food, clothing, cotton cloth, and a family allowance of 30 dong for accompanying family members, as well as housing construction subsidies as provided for cadres, workers, and staff under Point 5 of Decision No. 292/CP of the Council of Ministers.

III- REGARDING CADRES TRANSFERRED FROM STATE MANAGEMENT AGENCIES TO COOPERATIVES
FOR STRENGTHENING COOPERATIVES

Selecting cadres from state management agencies to strengthen cooperatives is part of Directive No. 208-CT/TW dated September 16, 1974, issued by the Central Committee's Secretariat regarding the reorganization of agricultural production and the improvement of agricultural management at the grassroots level towards the development of large-scale socialist production.

In response to the cadre transfer requirements mentioned above, the Council of Ministers has issued certain incentive policies (Point 7 of Decision No. 292-CP), and the Ministry of Labor has provided additional guidance on some points:

1- For cadres:

a) The provisions stipulated in Point 7 of Decision No. 292-CP of the Council of Ministers shall apply uniformly to provinces in the lowlands, midlands, and mountainous regions.

Cadres currently working in midland and mountainous provinces who are now being transferred to strengthen cooperatives, including cooperatives within the scope of new economic zones in the midlands and mountains, shall only be entitled to the provisions stipulated in Point 7 of Decision No. 292-CP, and Points 5 and 6 of Decision No. 292-CP shall not be applicable.

b) Food standards shall be enjoyed at levels of 18 kg and 21 kg per month, including breakfast allowances.

c) They shall be entitled to an encouragement subsidy of 6%, a lump-sum allowance of 30 dong for themselves, 30 dong for accompanying family members, and travel expenses, baggage fees, and food allowances for themselves and their families. Payment procedures shall be applied as specified in Points a, b, c, and d of Item 1 above in Section II.

2- For students graduating from secondary schools and vocational universities during their probationary period.

Those assigned to serve their probationary period at cooperatives (including before December 31, 1974, and from January 1, 1974 onwards) shall only be entitled to food standards of 18 kg and 21 kg per month. After completing the probationary period, if they are determined to be transferred cadres strengthening cooperatives, they shall be entitled to additional benefits as stipulated in Point 7 of Decision No. 292-CP of the Council of Ministers.

VI- SCOPE AND EFFECTIVE DATE

1- All sectors and localities need to develop plans to disseminate the full text of Decision No. 292-CP dated December 31, 1974, to all cadres, workers, and civil servants.

2- Decision No. 292-CP of the Council of Ministers and this explanatory circular shall take effect from December 31, 1974; specifically, Point 5, Point 6 of Decision No. 292-CP, and Section II of this circular shall take effect from May 25, 1974 (the date when the Council of Ministers issued Decision No. 129-CP promulgating "Policy for Cooperatives Expanding Agricultural and Forestry Areas in the Midlands and Mountainous Regions").

Nguyễn Thọ Chân

(Signed)