Circular No. 11/2002/TT-BLDTBXH guiding the implementation of certain provisions of Government Decree No. 41/2002/NĐ-CP dated April 11, 2002 on policies for surplus labor due to restructuring state-owned enterprises.

CIRCULAR

Guidelines for Implementing Certain Provisions of Decree No. 41/2002/NĐ-CP dated April 11, 2002 of the Government on Policies for Surplus Labor Due to Restructuring State-Owned Enterprises

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Pursuant to Decree No. 41/2002/NĐ-CP dated April 11, 2002 of the Government on Policies for Surplus Labor Due to Restructuring State-Owned Enterprises (hereinafter referred to as Decree No. 41/2002/NĐ-CP), after receiving opinions from relevant ministries, sectors, and the Vietnam General Confederation of Labor, the Ministry of Labor, Invalids, and Social Affairs hereby provides guidelines for implementation as follows:

I- SCOPE AND APPLICABLE SUBJECTS

1- The scope of application includes state-owned enterprises as stipulated in Article 1 of Decree No. 41/2002/NĐ-CP, including:

a) Enterprises implementing restructuring in accordance with Article 17 of the Labor Code, comprising:

- Enterprises retaining 100% state capital;

- Joint-stock companies converted from state-owned enterprises with restructuring plans confirmed by competent state authorities within 12 months from the date of issuance of business registration certificates under the Enterprise Law.

b) State-owned enterprises implementing restructuring through conversion forms, including:

- State-owned enterprises converting into Limited Liability Companies with One Member;

- State-owned enterprises converting into Joint-Stock Companies;

- State-owned enterprises merging or consolidating;

- State-owned enterprises transferring, selling, leasing, or entrusting management of enterprises.

c) State-owned enterprises being dissolved or declared bankrupt.

2- Enterprises implementing restructuring measures as specified in sub-item a, sub-item b, and point 1 above, whose restructuring plans have been approved or confirmed by competent state authorities during the period from April 26, 2002 (the effective date of Decree No. 41/2002/NĐ-CP) to December 31, 2005, and enterprises declared bankrupt or dissolved during the same period.

3- Competent state authorities approving enterprise restructuring plans are those authorized to decide on establishment, reorganization, merger, consolidation; conversion and diversification of ownership and management, implemented according to current regulations. For enterprises being dissolved or declared bankrupt, there is no need to approve restructuring plans but rather rely on dissolution or bankruptcy decisions made by competent authorities.

Specifically, for joint-stock companies converted from state-owned enterprises with less than 12 months of operation since obtaining business registration certificates under the Enterprise Law, the company's board of directors decides on restructuring plans in accordance with the company's articles of association and obtains confirmation from the competent state authority issuing the decision to convert the state-owned enterprise into a joint-stock company.

4- Surplus workers who are performing indefinite-term labor contracts as stipulated in Clause 1, Article 2 of Decree No. 41/2002/NĐ-CP include workers recruited before August 30, 1990 (the effective date of the Labor Contract Ordinance) but who had not yet signed written labor contracts at the time of enterprise restructuring.

5- Workers listed in the regular staff list of enterprises as stipulated in Point b, Clause 1, Article 2 of Decree No. 41/2002/NĐ-CP are those hired under indefinite-term or definite-term labor contracts of up to three years, and at the time of enterprise restructuring, neither the worker nor the employer has terminated the labor contract in accordance with labor laws.

II- POLICIES FOR SURPLUS LABOR

1- Policies for surplus workers currently performing indefinite-term labor contracts as stipulated in Article 3 of Decree No. 41/2002/NĐ-CP are as follows:

a) Male workers aged 55 to under 60 and female workers aged 50 to under 55, with at least 20 years of social insurance contributions, can retire without having their pension reduced due to early retirement, in addition to receiving the following additional benefits:

a.1) A lump sum payment of three months' salary grade, position, and wage supplements (if applicable) for each year (full 12 months) of early retirement. In cases of partial years, the calculation is as follows:

+ If the period is six months or less, one month's salary grade, position, and wage supplement (if applicable) will be provided.

+ If more than six months but less than twelve months, two months' salary grade, position, and wage supplements (if applicable) is granted.

a.2) A lump sum payment of five months' salary grade, position, and wage supplements (if applicable) for the first 20 years of work with social insurance contributions.

a.3) From the 21st year onwards, for each year of work with social insurance contributions, they receive half a month's salary grade, position, and wage supplements (if applicable). Partial years are calculated based on the principle that over six months counts as one year, and less than six months does not count.

The salary and wage supplements for implementing policies under Decree No. 41/2002/NĐ-CP are the salary grade, position, and wage supplements stipulated in Decree No. 26/CP dated May 23, 1993 of the Government on Temporary Regulations on New Salary Systems in Enterprises, Decree No. 25/CP dated May 23, 1993 of the Government on Temporary Regulations on New Salary Systems for Administrative Civil Servants, Public Service Employees, and Armed Forces Personnel, and the minimum wage set by the State at the time of retirement. If workers have not yet been reclassified in terms of salary, they shall be reclassified according to the aforementioned decrees.

The wage supplements included (if applicable) are: Position supplements, regional supplements.

Example 1: Mr. Nguyen Van A, an automobile repair worker, at the time of retirement was 56 years old and 4 months old; he had 25 years and 8 months of social insurance contributions; his current salary grade coefficient was 2.84 (Grade 6, Group Level II, Mechanic, Electrical, Electronics - Information Technology Scale A.1); regional allowance 0.5; minimum wage 210,000 VND/month. Mr. A will receive the following benefits:

+ Pension rate:

- The first 15 years calculated at 45%.

- Additional 2% per year from the 16th to the 25th year is 20%

(10 years x 2% = 20%).

- Total pension rate is 65% (45% + 20%).

+ Retirement benefit due to early retirement:

- Monthly rank and salary allowance:

210,000 VND x (2.84 + 0.5) = 701,400 VND

- Number of months of benefit entitlement:

Early retirement by 3 years and 8 months:

(3 years x 3 months/year + 2 months) = 11 months

With 20 years of work and social insurance contributions = 5 months

From the 21st year onwards with social insurance contributions = 3 months

(5 years and 8 months counted as 6 years x 1/2)

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Total: 19 months

- Amount received as a lump sum payment: 13,326,600 VND

(701,400 VND/month x 19 months)

b) Workers who have reached the retirement age as prescribed by the Labor Code but still lack up to one year (12 months) of social insurance contributions shall be supported by the State with funding for one-time social insurance contributions for the remaining months at a rate of 15% of their monthly salary at the time they reach retirement age, and shall be granted retirement benefits according to the current regulations, including the following cases:

b.1) Male workers aged 60 and female workers aged 55 with 14 years to less than 15 years of social insurance contributions.

Example 2: Mr. Nguyen Van B, a product delivery worker, has reached the age of 60 at the time of retirement and has 14 years of social insurance contributions; his salary coefficient is 2.73 (level 6, group I wage scale, month A.15 food processing); the minimum wage is 210,000 VND/month. Mr. B will be supported by the State with one-time social insurance contributions for 12 months at a rate of 15% of his monthly salary at the time he reaches retirement age, and will proceed with the procedures to receive retirement benefits according to current regulations.

+ Monthly wage used as the basis for social insurance contributions:

210,000 VND x 2.73 = 573,300 VND

+ One-time social insurance contribution:

(573,300 VND x 15%) x 12 months = 1,031,940 VND.

+ The retirement pension ratio is 45% (with 15 years of social insurance contributions).

b.2) Male workers aged 55 and female workers aged 50 with 15 years of work in heavy, hazardous jobs or 15 years of work in areas with regional allowances of 0.7 or higher, or 10 years of actual service in battlefields B and C before April 30, 1975, or battlefield K before August 31, 1981, with 19 years to less than 20 years of social insurance contributions.

Example 3: Mr. Nguyen Van C, a kitchen worker, has reached the age of 55 at the time of retirement and has 19 years and 6 months of social insurance contributions; his salary coefficient is 2.07 (level 5, group II wage scale, A.20 catering wage scale); the minimum wage is 210,000 VND/month. Mr. C will be supported by the State with one-time social insurance contributions for 6 months at a rate of 15% of his monthly salary at the time he reaches retirement age, and will proceed with the procedures to receive retirement benefits according to current regulations.

- Monthly wage used as the basis for social insurance contributions:

210,000 VND x 2.07 = 434,700 VND

- One-time social insurance contribution amount:

(434,700 VND x 15%) x 6 months = 391,230 VND.

- The percentage for calculating pension is 45% for the first 15 years.

From the 16th to the 20th year, an additional 10% is calculated.

From the 16th year to the 20th year, an additional 10% is added

(5 years, each year 2%; 5 years x 2%)

b.3) Male workers aged 50 and female workers aged 45 with 19 years to less than 20 years of social insurance contributions and a labor capacity reduction of 61% or more.

b.4) Workers (regardless of age) who have worked for at least 15 years in particularly heavy or particularly hazardous jobs and have 19 years to less than 20 years of social insurance contributions and a labor capacity reduction of 61% or more.

c) Redundant workers not falling under the provisions of sub-clause a and sub-clause b, point 1 above, shall terminate their employment contracts and enjoy the following benefits:

c.1) Unemployment allowance calculated based on the actual working period in the public sector, with each full year (12 months) entitling them to one month's salary grade, position allowance, and any other allowances (if applicable), but not less than two months' salary and allowances.

c.2) An additional allowance of one month's salary grade, position, and any other allowances (if applicable) for each full year (12 months) of actual work in the public sector, and a one-time allowance of five million VND.

The actual working period in the public sector is the period during which the worker actually worked at state-owned enterprises, agencies, units within the public sector, or units under the armed forces (receiving salaries from the state budget) until the decision was made to retire the worker due to restructuring or ownership and management changes. For companies converted from state-owned enterprises as stipulated in sub-clause a, point 1, Section I of this Circular, the actual working period in the public sector is counted up to the date of issuance of the business registration certificate under the Law on Enterprises. The actual working period in the public sector does not include periods during which the worker received unemployment allowance, termination allowance, or discharge benefits.

If the actual working time in the state sector includes a fractional month, it is defined as follows:

+ Less than one month is not counted;

+ From one month to less than seven months is calculated as six months of actual work.

+ From seven months to less than twelve months, counted as one year of actual work.

c.3) A one-time allowance for job search is six months' salary grade, position, and any other allowances (if applicable). If there is a desire to learn a trade, free training for up to six months at a vocational training institution designated by the Department of Labor, Invalids, and Social Affairs is provided.

The salary and allowances are applied according to the provisions of sub-clause a, point 1, Section II of this Circular.

Example 4: Mr. Nguyen Van D, a locomotive and carriage repair worker, has reached the age of 54 at the time of retirement and has 30 years and 7 months of actual work in the public sector; his salary coefficient is 3.05 (level 6, group III wage scale, A.1 mechanical, electrical, electronics, information technology wage scale); the minimum wage is 210,000 VND/month. Mr. D will enjoy the following benefits:

210,000 VND x 3.05 = 640,500 VND

Unemployment allowance calculated based on the actual working period:

640,500 VND/month x 31 months = 19,855,500 VND.

Additional allowance calculated based on the actual working period:

640,500 VND/month x 31 months = 19,855,500 VND.

One-time allowance: 5,000,000 VND.

Allowance for job search:

640,500 VND/month x 6 months = 3,843,000 VND.

Total amount received: 48,554,000 VND.

(19,855,500 VND + 19,855,500 VND + 5,000,000 VND + 3,843,000 VND).

Example 5: Mr. Nguyen Van E, a road construction worker, has reached the age of 54 at the time of retirement and has 27 years and 7 months of actual work in the public sector; his salary coefficient is 3.45 (level 7, group II wage scale, A6 basic construction wage scale); the minimum wage is 210,000 VND. Mr. E has already received unemployment allowance for 15 years. Mr. E will enjoy the following benefits:

Monthly salary grade and allowance:

210,000 VND x 3.45 = 724,500 VND

Actual working time eligible for severance pay:

28 years - 15 years = 13 years.

Unemployment allowance calculated based on the actual working period:

724,500 VND/month x 13 months = 9,418,500 VND.

Additional allowance calculated based on the actual working period:

724,500 VND/month x 13 months = 9,418,500 VND.

One-time fixed allowance: 5,000,000 VND.

Allowance for job search:

724,500 VND/month x 6 months = 4,347,000 VND.

Total amount received: 28,184,000 VND.

(9,418,500 VND + 9,418,500 VND + 5,000,000 VND + 4,347,000 VND).

c4. Workers who are still lacking up to 05 years from the retirement age as stipulated by the Labor Code (men aged 55 to under 60, women aged 50 to under 55) and have contributed to social insurance for at least 15 years without receiving a one-time social insurance benefit, as provided for in point d, Clause 3 of Decree No. 41/2002/ND-CP, are now regulated as follows:

+ They shall enjoy policies as prescribed in c1 and c2 of item c, point 1, Section II of this Circular.

+ They shall continue to contribute to social insurance monthly at a rate of 15% of their salary until they reach the retirement age as stipulated (60 years old for men, 55 years old for women), then they will receive monthly pension according to current regulations.

The salary basis for social insurance contributions is the salary basis for social insurance contributions before the time of retirement, including: rank and position salary, regional allowance, and the salary retention difference coefficient calculated based on the minimum wage set by the State at the time of social insurance payment.

+ The period of continued social insurance contributions starts from the date of the decision to retire.

Example 6: Mr. Nguyen Van F, a bridge construction worker, at the time of retirement was 57 years old; he had 17 years and 6 months of actual work experience in the state sector; his salary coefficient was 3.05 (rank 6 group III A6 construction); regional allowance 0.4; the minimum wage was 210,000 VND/month. Mr. F belongs to the category of workers who must continue to contribute to social insurance until reaching the retirement age (60 years old) and will be handled according to the following:

- Unemployment benefit:

Monthly rank and position salary and allowances:

210,000 VND x (3.05 + 0.4) = 724,500 VND

Unemployment benefit based on actual working time:

724,500 VND/month x 17.5 months = 12,670,750 VND

Additional allowance calculated based on the actual working period:

724,500 VND/month x 17.5 months = 12,670,750 VND

One-time fixed benefit amount: 5,000,000 VND.

Total amount received: 30,341,500 VND

(12,670,750 VND + 12,670,750 VND + 5,000,000 VND)

- Mr. F must continue to contribute to social insurance for 3 years (36 months); the monthly social insurance contribution rate:

724,500 VND x 15% = 108,675 VND.

+ Procedures and documents for continuing social insurance contributions shall be carried out in accordance with the guidelines of the Vietnam Social Security.

+ During the period of self-contributing to social insurance, if the worker dies, their dependents will receive the death benefit according to current regulations.

In case the worker does not meet the conditions to continue contributing to social insurance, in addition to enjoying the benefits prescribed in c1, c2, and c3 of item c, point 1, Section II of this Circular, they will also retain the time already contributed to social insurance and be issued a social insurance book or receive a one-time social insurance benefit. Procedures and documents for handling shall be carried out according to current regulations.

2. Policy for surplus workers implementing fixed-term labor contracts from 1 to 3 years as stipulated in Article 4 of Decree No. 41/2002/ND-CP, now regulated as follows:

a. Shall receive unemployment assistance of one month's rank salary and position allowance (if applicable) for each year of actual work experience in the state sector.

b. They shall receive a subsidy of 70% of the rank and position salary and allowances (if any) for the remaining months that have not been fully executed in the labor contract, but not exceeding 12 months of rank and position salary and allowances as specified in point 1, Section II of this Circular.

Actual work experience in the state sector is defined in point c item 1 Section II of this Circular.

Example 7: Mr. Nguyen Van G, a sand and gravel extraction worker, signed a fixed-term labor contract for 03 years, at the time of retirement, he only completed 12 months of the contract, leaving 24 months unfulfilled in the contract, but according to the regulation, he can only enjoy a maximum of 12 months. Therefore, Mr. G will only receive a subsidy (70% x 12 months) of the rank and position salary and allowances (if any).

c. Workers who are still lacking up to 5 years from the retirement age as stipulated by the Labor Code (men aged 55 to under 60, women aged 50 to under 55, having contributed to social insurance for at least 15 years without receiving a one-time social insurance benefit, as provided for in Clause 3, Article 4 of Decree No. 41/2002/ND-CP, are now regulated as follows:

+ Shall enjoy policies as prescribed in points a and b above.

+ They shall continue to contribute to social insurance monthly at a rate of 15% of their salary until they reach the retirement age as stipulated (60 years old for men, 55 years old for women), then they will receive monthly pension according to current regulations.

The salary basis for social insurance contributions is the salary basis for social insurance contributions before the time of retirement, including: rank and position salary, position allowance, regional allowance, and the salary retention difference coefficient calculated based on the minimum wage set by the State at the time of social insurance payment.

+ The period of continued social insurance contributions starts from the date of the decision to retire.

3. Workers who have received unemployment benefits and are re-employed at the enterprise that previously terminated their employment or at another state-owned enterprise must return the unemployment benefit amount as stipulated in Article 5 of Decree No. 41/2002/ND-CP, which is detailed as follows:

a. Workers who are re-employed at the enterprise that previously terminated their employment or at other state-owned enterprises when submitting recruitment application documents according to current regulations and attaching a copy of the decision to terminate employment and enjoy the policy for surplus workers due to restructuring of state-owned enterprises, and returning to the employer the additional unemployment benefit amount as stipulated in point b, Clause 3, Article 3 of Decree No. 41/2002/ND-CP (one month's rank and position salary, position allowance, regional allowance, and 5 million VND).

b. The employer has the responsibility to collect the unemployment benefit amount that the worker has returned and submit it to the Surplus Worker Support Fund according to the regulations of the Ministry of Finance.

III- SOURCES OF FUNDS FOR PAYMENT

The sources of funds for paying the benefits to surplus workers are implemented according to Article 7 and Article 8 of Decree No. 41/2002/ND-CP and the guidance documents of the Ministry of Finance.

IV- IMPLEMENTATION:

1- Responsibilities of enterprises:

Enterprises implementing workforce restructuring and handling benefits for surplus workers as stipulated in Article 9 of Decree No. 41/2002/ND-CP shall carry out the following procedures:

a. Organize propaganda on the Party and State's policies on continued restructuring, reform, development, and improving the efficiency of state-owned enterprises and policies for surplus workers so that workers understand the policies of the Party and State.

b. Develop a workforce restructuring plan.

Enterprises shall develop a restructuring plan, including a workforce restructuring plan, which shall be carried out in the following steps:

Step 1: Establish a complete list of all employees of the enterprise at the time of restructuring in accordance with Article I of Decree No. 41/2002/NĐ-CP of the Government (Model 1 attached to this Circular), including:

- The number of employees currently working and receiving wages and social insurance contributions, or not receiving social insurance contributions (including seasonal or specific job workers whose duration is less than one year).

- The number of employees who have stopped working but are still listed on the enterprise's payroll, receiving salaries or not, and contributing to social insurance or not.

Step 2: Determine the number of employees needed and surplus employees as follows:

- For enterprises retaining 100% state capital and state-owned enterprises converted into Limited Liability Companies with one member: determine the number of employees needed based on the production-business plan, production technology, machinery and equipment, labor norms oriented towards the development and profitability of the enterprise, approved by competent state authorities; the remaining employees are those not required for employment.

- For enterprises implementing transfer, sale, lease, and business contracting: the number of employees needed is the number agreed upon between both parties (transferor and transferee, seller and buyer, contractor and subcontractor, lessor and lessee) recorded in the transfer, sale, contracting, or leasing contract; the remaining employees are those not required for employment.

- For enterprises implementing shareholding from April 26, 2002 to December 31, 2005: the number of employees needed is based on the shareholding plan approved by competent state authorities; the remaining employees are those not required for employment.

- For Joint Stock Companies converted from state-owned enterprises that have been operating for no more than 12 months since obtaining their business registration certificate under the Enterprise Law, when restructuring, if there are employees transferred from state enterprises who cannot be re-employed, they will be considered as surplus employees not required for employment.

- For enterprises implementing mergers and consolidations: the number of employees needed is based on the merger and consolidation plan approved by authorized authorities; the remaining employees are those not required for employment.

The surplus employees identified in Step 2 above are divided into two categories: Employees hired before April 21, 1998, are surplus employees subject to the regulations stipulated in Decree No. 41/2002/NĐ-CP; employees hired from April 21, 1998, are subject to the provisions of the Labor Code.

- For enterprises implementing dissolution and bankruptcy: all employees listed in the enterprise's roster hired before April 26, 2002, will be subject to policies stipulated in Decree No. 41/2002/NĐ-CP. Employees hired from April 26, 2002, will be handled according to the provisions of the Labor Code.

Step 3: Establish a list of employees needed (Model 2 attached to this Circular) and a list of surplus employees not required for employment (Model 3 attached to this Circular).

Step 4: The enterprise shall cooperate with the Trade Union Executive Committee to organize a Workers' Congress to provide opinions on the employee lists (from Model 1 to Model 3).

Step 5: Based on the opinions of the Workers' Congress, the enterprise shall finalize this employee arrangement plan and submit it to the authorized authority specified in Point 5, Section IV of this Circular for approval. The submission file consists of six copies, each copy includes:

- A request for approval of the employee arrangement plan (Model 4 attached to this Circular),

- An employee rearrangement plan (Model 5 attached to this Circular),

- A list of employees classified (from Model 1 to Model 3 attached hereto).

Specifically, for state-owned enterprises undergoing dissolution and bankruptcy, there is no need to approve the enterprise restructuring plan but only the employee arrangement plan (Models 1 and 3 attached to this Circular).

c. Provide assistance payments to surplus employees.

Within fifteen working days from the date of approval of the employee arrangement plan by the authorized authority, the enterprise shall implement payment of allowances to surplus employees as follows:

c1. Issue a decision for each surplus employee to cease work according to the policies already stipulated in Decree No. 41/2002/NĐ-CP (Model 6 attached to this Circular; the Decision shall be made in two copies: one copy sent to the employee, one copy retained by the enterprise).

c2. Estimate the budget for paying benefits to surplus employees according to the policies (Models 7, 8, 9, 10 attached to this Circular).

c3. Prepare a file requesting financial support from the Surplus Labor Support Fund in accordance with the regulations of the Ministry of Finance.

c4. For surplus employees not covered by the regulations stipulated in Decree No. 41/2002/NĐ-CP (Model 11 attached to this Circular), the enterprise shall establish a separate list to handle them according to the provisions of the Labor Code.

d. Resolving the regime for workers.

- Responsibilities of enterprises.

+ Based on the cessation decision, fully and correctly settle all allowances due to surplus employees within the prescribed period.

+ Provide a free vocational training voucher once to employees willing to learn a trade (Model 12 attached to this Circular).

+ Complete all necessary documents and procedures for resolving social insurance benefits in accordance with the law.

+ Clearly record the reasons for termination and the benefits resolved in the employee records and return all documents to the employee according to the law;

+ Within seven working days from the date of receiving funds from the Surplus Employee Support Fund, the enterprise shall be responsible for directly paying the allowances to employees according to the approved plan.

- Responsibilities of employees when enjoying policies:

+ Sign to receive all allowance payments;

+ Sign off completely on the cessation file.

+ Settle any outstanding debts owed to the enterprise (if any).

e. At the latest thirty working days from the completion of handling the benefits for surplus employees, the enterprise shall report the implementation results to the authorized authorities. The report content includes: evaluation of strengths and weaknesses, results of payments (as stipulated by the Ministry of Finance); the report shall consist of six copies and be submitted to: the approving authority of the employee plan, the Ministry of Finance, the Ministry of Labor, Invalids and Social Affairs, the Vietnam Social Security, the Department of Labor, Invalids and Social Affairs of the province or centrally-administered city, and retained by the enterprise.

2. Responsibilities of employees when learning a trade and vocational training institutions:

a. Surplus employees willing to learn a trade who have received a free vocational training voucher must submit their training application to the vocational training institution designated by the Department of Labor, Invalids and Social Affairs within ninety days from the date of the cessation decision.

b. The vocational training institution is responsible for accepting the registration forms for vocational training of surplus workers who wish to undergo vocational training. The form includes:

- Original free vocational training certificate issued by the employer;

- Copy of the decision to terminate employment and enjoy the policy for surplus labor due to restructuring state-owned enterprises.

After accepting the application, the vocational training institution shall confirm "agreement to accept vocational training," sign and stamp the back of the original cessation decision, and return it to the employee.

The vocational training institution shall be provided with a maximum budget of six months to provide free vocational training for surplus employees willing to learn a trade. The training fee, procedures, and settlement process are implemented according to the guidelines of the Ministry of Finance.

3. The Department of Labor, Invalids and Social Affairs of the province or centrally governed city shall be responsible for:

a) Assisting the People's Committee of the province or centrally governed city to urge and inspect the implementation of policies concerning redundant labor within their jurisdiction;

b) Designating vocational training establishments that have been registered for operation by the Labor - Invalids and Social Affairs authority and compiling a list of designated vocational training establishments (name of the establishment; specific address) to send to the Ministry of Finance for funding vocational training expenses. Each province or centrally governed city may designate up to twenty vocational training establishments and announce them through various media channels.

4. The Vietnam Social Security shall be responsible for directing, guiding, and inspecting provincial or centrally governed city social security agencies to implement social insurance policies for redundant workers in accordance with this Circular and current regulations.

5. Responsibilities of Ministries; agencies at the ministerial level; Chairmen of Provincial People's Committees; Management Councils of State-Owned Enterprise Group 91:

a) Organizing propaganda on the Party and State's policies on continuing to restructure, reform, develop, and enhance the efficiency of state-owned enterprises, particularly policies concerning redundant labor;

b) Approving workforce restructuring plans due to enterprise restructuring; reviewing enterprise applications for financial support according to the guidelines of the Ministry of Finance;

Within fifteen working days from the date of receipt of the enterprise's workforce restructuring plan, the competent authority shall be responsible for approving and sending the decision along with five sets of files to the enterprise. If approval cannot be granted, the competent authority shall guide the enterprise to amend and supplement the plan. Within ten working days from the date of receipt of the plan from the competent authority, the enterprise shall complete the plan and resubmit it to the approving authority.

c) Directing specialized agencies to guide affiliated enterprises under their management in formulating plans, inspecting the implementation of policies for redundant labor, and following the provisions of this Circular;

d) Organizing mid-term and final evaluations to assess the results of resolving surplus labor;

e) Reporting periodically every three months to the Ministry of Labor, Invalids and Social Affairs, and simultaneously sending reports to the Ministry of Finance on the situation of workforce restructuring and handling of redundant labor: Evaluating strengths and weaknesses, results achieved (using forms 13 and 14 attached to this Circular), proposing solutions to unresolved issues during implementation, with the latest reporting deadlines being April 15; July 15; October 15 annually, and an annual report on January 15 of the following year to report to the Government.

6. This Circular shall take effect from April 26, 2002 until December 31, 2005.

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