Joint Circular No. 11/2008/TTLT-BLDTBXH-BTC guiding the management and use of the Overseas Employment Support Fund

JOINT CIRCULAR

||| Guidelines for managing and using the overseas employment support fund

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||| Pursuant to Decree No. 186/2007/NĐ-CP dated December 25, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor, War Invalids and Social Affairs;

||| Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

||| Pursuant to Decision No. 144/2007/QĐ-TTg dated August 31, 2007 of the Prime Minister on the establishment, management, and use of the Overseas Employment Support Fund (hereinafter referred to as Decision No. 144/2007/QĐ-TTg of the Prime Minister),

||| The Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance jointly issue guidelines for managing and using the Overseas Employment Support Fund (hereinafter referred to as the Fund) as follows:

||| I. SOURCES OF FORMATION, LEVELS AND METHODS OF CONTRIBUTING TO THE FUND

||| 1. The balance of the Export Labor Support Fund transferred over.

||| 2. Contributions from service enterprises according to Clause 2, Article 2 of Decision No. 144/2007/QĐ-TTg of the Prime Minister.

||| a) Service enterprises shall allocate 1% of their annual service revenue to contribute to the Fund.

||| Annual service revenue serving as the basis for calculating the contribution level to the Fund is the annual service revenue of the enterprise. Service enterprises may account for this contribution as part of their operational costs for sending workers abroad.

||| b) Quarterly, no later than the 10th day of the first month of each quarter, service enterprises must declare and contribute to the Fund according to regulations. By the end of the first quarter of the following year at the latest, enterprises must fully contribute and settle the previous year's report with the Fund (declaration and reporting according to Form 1 attached).

||| 3. Contributions from workers according to Clause 3, Article 2 of Decision No. 144/2007/QĐ-TTg of the Prime Minister as follows:

||| a) Workers contribute VND 100,000 per person per contract (including extended periods) and receive a Certificate of Participation in the Fund.

||| The Certificate of Participation in the Fund is a certificate confirming that the worker named therein is entitled to benefits as stipulated in this Circular. The certificate is valid from the date the worker pays the contribution until the end of the labor contract, including any contract extensions.

||| The Fund Management Board is responsible for organizing the printing, issuance, and provision of Certificates of Participation in the Fund to workers through service enterprises, organizations sending workers abroad, and Provincial Departments of Labor, War Invalids and Social Affairs (according to Form 2 attached).

||| b) Workers going abroad through service enterprises, winning or subcontracting enterprises, public institutions, organizations, or individuals investing abroad (collectively referred to as sending enterprises or organizations) contribute to the Fund when participating in pre-departure training courses.

||| c) Workers going abroad under individual contracts contribute to the Fund when registering their contracts with the Department of Labor, War Invalids and Social Affairs.

||| d) Sending enterprises and organizations and Provincial Departments of Labor, War Invalids and Social Affairs have the responsibility to collect contributions from workers according to this Circular and issue Certificates of Participation to workers according to the guidance of the Fund Management Board; monthly, no later than the 10th day of the following month, transfer the entire previous month's collection to the Fund's account.

||| c) Periodically (quarterly, annually), sending enterprises and organizations and Provincial Departments of Labor, War Invalids and Social Affairs are responsible for preparing reports on the collection of worker contributions to the Fund (according to Form 3a attached) and sending them to the Fund along with a list of workers (according to Form 3b attached).

||| 4. State budget support in special cases as decided by the Prime Minister.

||| 5. Other sources of income (interest from deposits, donations from domestic and foreign organizations and individuals).

||| II. CONTENT, LEVELS AND PROCEDURES FOR SUPPORT

||| 1. Supporting the expansion and development of overseas labor markets according to Clause 1, Article 3 of Decision No. 144/2007/QĐ-TTg dated August 31, 2007 of the Prime Minister as follows:

||| a) Supporting participation in activities to explore, survey, and understand new labor markets.

||| New labor markets are countries and territories where Vietnamese workers have not yet been sent to work under contracts.

||| - Object of support: Representatives of organizations and individuals invited by the Ministry of Labor, War Invalids and Social Affairs to participate in activities to explore, survey, and understand new labor markets.

||| - Level of support: The Fund supports round-trip airfare from Vietnam to the country of work for members invited from enterprises and covers all expenses according to regulations for those receiving salaries from the state budget.

||| - Procedures and formalities for disbursing support: Based on the Ministry of Labor, War Invalids and Social Affairs' decision inviting staff to participate in market surveys abroad, the Fund organizes the purchase of air tickets and supports other expenses (if any) for representatives of organizations and individuals invited to join the delegation.

||| - No later than seven days after the end of the mission, the organizations and individuals receiving support are responsible for returning the expense receipts to the Fund to complete the settlement procedures according to regulations.

||| b) Supporting enterprises in exploring new labor markets.

||| - Object and conditions for support: The Fund supports up to five (5) leading service enterprises in exploring and sending workers to work in new markets.

||| - Level of support: Up to 30% of the airfare and travel expenses for enterprise staff dispatched to explore new labor markets (according to the allowance regulations of the Ministry of Finance for staff dispatched abroad for short-term assignments funded by the state budget), but not exceeding USD 5,000 per enterprise per market.

||| - Procedures and formalities for disbursing support: Service enterprises with a request for support confirmed by the Overseas Labor Administration as one of the first five enterprises to explore and send workers to work in new markets (according to Form 4 attached) must submit the following documents to the Fund:

||| + Original decision dispatching staff for work by the competent authority;

+ A list of airfare expenses and travel allowances for enterprise staff traveling to develop new labor markets (accompanied by all supporting documents for verification).

- Timeframe for processing support payments: The Fund shall be responsible for resolving within a maximum period of 30 working days from the date of receipt of complete files as prescribed; in cases where it does not resolve, it must respond in writing and specify the reasons.

c) Support enterprises in activities aimed at consolidating and developing traditional labor markets.

Traditional labor markets are countries and territories that have successfully sent Vietnamese workers to work under contracts and continue to accept Vietnamese workers.

- Eligibility and conditions for support: Enterprises that have dispatched more than 500 workers/year/market to markets with a minimum basic wage of $500/month per worker or more than 1,000 workers/year/market to markets with a basic wage of less than $500/month per worker, and promptly address issues arising for workers.

- Level of support: Up to 30% of living expenses for enterprise staff managing labor abroad (based on the minimum living expense level set by the Ministry of Finance for officials and civil servants assigned to work at overseas representative offices), but not exceeding $3,000 per enterprise per year per market.

- Process and procedures for support payments: Annually, service enterprises submit a request for support confirmed by the Overseas Labor Management Department regarding the number of workers dispatched and the management situation abroad (according to Form 4 attached) along with the following documents:

+ Decision (original) assigning staff to manage labor abroad issued by authorized agencies or organizations;

+ List of expenses for living costs for enterprise staff managing labor abroad (accompanied by all supporting documents for verification).

- Timeframe for processing support payments: The Fund shall be responsible for resolving within a maximum period of 15 working days from the date of receipt of complete files as prescribed; in cases where it does not resolve, it must respond in writing and specify the reasons.

d) Support activities aimed at establishing relationships, lobbying partners, gathering information to understand, promote, and seek new markets, consolidate and develop traditional labor markets for the Ministry of Labor, Invalids, and Social Affairs for tasks not allocated state budget funds.

- Level of support: Not exceeding 30% of the total annual expenses for promoting foreign labor markets according to approved budgets.

Annually, the Fund prepares a budget for support for the aforementioned activities to be submitted for approval by the Minister of Labor, Invalids, and Social Affairs.

- Regulations and procedures for support payments: When there are such activities, the agencies, organizations, and individuals tasked with implementation must submit a document requesting approval of the content and budget from the Ministry of Labor, Invalids, and Social Affairs. Based on the approved content and budget, the Fund disburses funds and settles accounts according to regulations.

đ) Support activities to promote Vietnamese labor going abroad.

- Eligibility and conditions for support: Agencies permitted by the Minister of Labor, Invalids, and Social Affairs to organize activities to promote Vietnamese labor going abroad.

- Level of support: Up to 50% of actual expenses, but not exceeding 50% of the approved budget.

- Process and procedures for support payments: Agencies organizing promotional activities submit a request for support to the Fund accompanied by the decision of the Minister of Labor, Invalids, and Social Affairs allowing the organization of promotional activities for Vietnamese labor going abroad (specifying the content and budget in the decision). - Timeframe for processing support: Within a maximum of 10 days from the date of receipt of complete files as prescribed, the Fund will provide a provisional payment of 35% of the approved budget. In cases where it does not resolve, it must respond in writing and specify the reasons.

- At the latest, within 15 days from the completion of promotional activities, the organizing agency must settle accounts with the Fund according to regulations. Documents include: payment request form and expense list (accompanied by all supporting documents for verification).

2. Support for training and upgrading the quality of labor resources as stipulated in Clause 2, Article 3 of Decision No. 144/2007/QĐ-TTg dated August 31, 2007 of the Prime Minister.

a) Training materials for language and necessary knowledge for workers.

- Eligibility for support: Workers going abroad through enterprises or organizations dispatching them or under individual contracts.

- Level of support: The Fund provides free training materials for language and necessary knowledge for workers through dispatching enterprises or organizations or through the Department of Labor, Invalids, and Social Affairs (for individual contracts).

- Process and procedures for support payments:

+ Quarterly, dispatching enterprises or organizations and the Department of Labor, Invalids, and Social Affairs (for individual contracts) prepare reports and requests for material provision for workers (according to Form 5 attached);

+ Dispatching enterprises or organizations and the Department of Labor, Invalids, and Social Affairs are responsible for maintaining records and distributing materials to workers; annually, they prepare reports to the Fund on the distribution of materials to workers (according to Form 5 attached).

b) Support for tuition fees for skill enhancement, language, and necessary knowledge training for workers.

- Eligibility and conditions for support: Workers who are children of war invalids or martyrs, those entitled to preferential policies, workers from poor households, and ethnic minority workers going abroad.

- Level of support: 50% of the tuition fee payable according to regulations, but not exceeding VND 1,500,000 per worker.

- Process and procedures for support payments:

+ Workers eligible for support when starting a skill enhancement, language, or necessary knowledge training course must submit a request for tuition fee support confirmed by the People's Committee of their commune regarding their permanent residence registration and type of beneficiary (according to Form 6a attached);

+ Enterprise or organization sending workers to prepare a list of workers eligible for support (in accordance with Form 7a) along with the workers' application submitted to the Fund;

- Time limit for processing support: within a maximum of 10 days from the date all required documents are received, the Fund will provide financial support to the workers through the enterprise or organization that sent them abroad; if the request is not approved, the Fund must respond in writing and specify the reasons. The enterprise or organization must pay the workers or reduce their tuition fees equivalent to the level of support within a maximum of five working days from the date they receive funds from the Fund.

c) Support for skill enhancement and language training for workers in markets requiring high levels of skills and languages.

 - Eligible subjects and conditions for support: Workers participating in courses under pilot projects to send laborers to work in markets demanding high levels of skills and languages, approved by the Ministry of Labor, Invalids and Social Affairs for implementation.

- Level of support: Equal to 20% of the tuition fee stipulated, but not exceeding 2,000,000 VND per worker.

- Process and procedures for disbursing support: Enterprises or organizations implementing pilot projects to send laborers to work in markets demanding high levels of skills and languages prepare a list of workers participating in the course (in accordance with Form 7b) and submit it to the Fund along with the approval document for the project (specifying the profession, number of workers, training content, and tuition fee).

- Time limit for processing support: within a maximum of 10 days from the date all required documents are received, the Fund will provide financial support to the workers through the enterprise or organization implementing the project; if the request is not approved, the Fund must respond in writing and specify the reasons. The enterprise or organization implementing the project is responsible for paying the workers or reducing their tuition fees equivalent to the level of support.

3. Support for resolving risks for workers and service enterprises in accordance with Clause 3, Article 3 of Decision No. 144/2007/QĐ-TTg dated August 31, 2007 of the Government Prime Minister.

a) Support for dependents of workers who have died.

- Eligible subjects for support: Dependents of workers who died while working abroad. The dependents must be authorized by the worker in the contract for sending workers to work abroad.

- Level of support: 10,000,000 VND per case.

- Process and procedures for disbursing support: The dependents of the worker submit an application for risk support with confirmation from the People's Committee of the commune regarding the worker's household registration and the relationship between the authorized person and the worker (in accordance with Form 6b) to the Fund, accompanied by a copy of the death certificate of the worker or confirmation from the Vietnamese representative office abroad;

- Time limit for processing support: within a maximum of 15 days from the date all required documents are received, the Fund will directly support the dependents of the worker or through the Vietnam Agricultural and Rural Development Bank system (as stated in the application). If the request is not approved, the Fund must respond in writing and specify the reasons.

b) Support for workers who suffer workplace accidents, unexpected accidents, illness, or disease and are unable to continue working and must return home before the contract expires.

- Eligible subjects and conditions for support: Workers currently working abroad under a contract who suffer workplace accidents, unexpected accidents, illness, or disease and are unable to continue working and must return home before the contract expires. This support does not apply to workers who leave the contract or must return immediately after arriving in the host country due to errors in domestic health examinations.

- Level of support: A maximum of 5,000,000 VND per case for workers who have worked abroad for up to 50% of the contract period and a maximum of 3,000,000 VND per case for workers who have worked abroad for more than 50% of the contract period.

- Process and procedures for support payments:

+ The worker or the person authorized by the worker submits an application for risk support with confirmation from the People's Committee of the commune regarding the worker's household registration and the relationship between the authorized person and the worker (in accordance with Form 6b) to the Fund through the enterprise or organization that sent the worker or the Department of Labor, Invalids and Social Affairs where the contract was registered, accompanied by a confirmation from the local health authority or the Vietnamese representative office abroad regarding the worker's inability to continue working;

+ The enterprise or organization that sent the worker and the Department of Labor, Invalids and Social Affairs prepare a list of workers eligible for support (in accordance with Form 8) along with the workers' application submitted to the Fund requesting support for the workers;

- Time limit for processing support: within a maximum of 15 days from the date all required documents are received, the Fund will review and provide support to the workers through the enterprise or organization that sent the worker or the Department of Labor, Invalids and Social Affairs; if the request is not approved, the Fund must respond in writing and specify the reasons. The enterprise or organization that sent the worker or the Department of Labor, Invalids and Social Affairs must pay the workers within a maximum of five working days from the date they receive funds from the Fund.

c) Support for workers in certain other objective risk situations.

- Eligible subjects for support: Workers going to work abroad under a contract.

- Level of support: The Minister of Labor, Invalids and Social Affairs decides on the maximum level of support at 5,000,000 VND per case based on the proposal of the Fund Management Board.

- Process and procedures for disbursing support: The Fund Management Board guides the process and procedures for supporting each specific case.

d) Support for enterprises to resolve risks for workers.

- Eligible subjects and conditions for support: Service enterprises must send staff abroad to resolve risks for workers who die while working abroad.

- Level of support: Equivalent to one economy class air ticket (one way) from Vietnam to the country where the worker is employed.

- Regulations and procedures for disbursing support: The enterprise submits a request for support (in accordance with Form 4) to the Fund, accompanied by the following documents:

+ Decision (original) to send staff on a business trip by the competent authority, copy of the boarding stub of the air ticket for the staff member.

+ A copy of the death certificate of the worker.

- Time limit for processing support payments: The Fund shall be responsible for resolving within a maximum period of fifteen working days from the date of receipt of all required documents as stipulated. In cases where the request is not resolved, the Fund must provide a written response detailing the reasons.

4. Expenditure on information dissemination and propaganda regarding the Party's policies and State laws concerning the dispatch of Vietnamese workers to work abroad with the aim of enhancing societal awareness and promoting effective models of worker dispatch abroad. The expenditure level shall be determined according to economic contracts ensuring economy, rationality, and compliance with financial regulations.

5. Expenditure on the management and operation of the Fund. The Fund is entitled to allocate ten percent of its annual revenue to cover expenditures for the management and operation of the Fund, including the following items:

a) Expenditure on salaries and wages for the management and operational staff of the Fund.

- Staff members under the establishment of the Fund shall enjoy salaries, allowances, and contributions (health insurance, social insurance, trade union fees) in accordance with current State regulations applicable to public service units with income;

- Staff members assigned to work concurrently at the Fund shall receive management allowances corresponding to the proportion of time spent working at the Fund. Depending on workload and degree of participation, the Chairman of the Management Council shall determine the allowance levels for each member of the Management Council and the Director of the Operating Board shall determine the allowance levels for each member of the Operating Board, but such allowances shall not exceed the basic salary as prescribed in Decree No. 204/2004/CP dated December 14, 2004 of the Government.

- Staff recruited under employment contracts to work at the Fund: Shall comply with current regulations.

b) Expenditures on travel expenses, departure and return expenses, seminar and conference expenses directly serving the activities of the Fund shall be applied in accordance with current regulations. Special cases exceeding the general limits may be decided by the Chairman of the Management Council.

c) Expenditures on professional business operations and other related expenses such as procurement, repair of fixed assets; office supplies expenses, public service payment expenses (electricity, fuel, sanitation, environment, etc.) shall be implemented in accordance with current regulations.

III. MANAGEMENT OF THE FUND'S FINANCES

1. The Fund must organize accounting and settlement activities in strict compliance with current laws on accounting and finance; it shall be subject to inspection, audit, and review of its financial activities. The Director of the Operating Board is the account holder and is responsible for the Fund's financial and accounting management.

a) For the Operating Board:

- Adhere to regulations on accounting vouchers, accounting entries, and ledger books to record, systematize, and store all economic and financial transactions related to the Fund's activities in accordance with the current administrative and public service accounting regime;

- Prepare and submit complete and timely financial reports and annual settlements of the Fund to the Ministry of Labor, Invalids, and Social Affairs and the financial authority as stipulated.

b) Organizations and individuals sending workers abroad and Provincial Departments of Labor, Invalids, and Social Affairs:

- Are responsible for opening accounts, recording, and submitting periodic and annual reports (as per Appendix No. 9) on the implementation of support payments to workers to the Fund along with all supporting documents for the payments.

- Provincial Departments of Labor, Invalids, and Social Affairs shall implement the disbursement and settlement of funds supported by the Fund as specified in point b, clause 5, Section II of this Circular in accordance with current financial regulations and guidance from the Operating Board.

2. In special circumstances requiring state support, the Management Council of the Fund shall prepare detailed budgets and submit them to the Ministry of Labor, Invalids, and Social Affairs for consideration and recommendation to the Ministry of Finance for consolidation and submission to the Prime Minister for decision. The Ministry of Labor, Invalids, and Social Affairs shall be responsible for settling state budget support funds for the Fund and consolidating these in the annual state budget settlement of the Ministry of Labor, Invalids, and Social Affairs as prescribed.

3. The Fund must publicly disclose its finances in accordance with current regulations.

IV. IMPLEMENTATION

1. This Circular shall take effect fifteen days after its publication in the Official Gazette, and previous regulations concerning the Fund for Exporting Workers shall be repealed.

2. Workers shall only be eligible for support from the Fund as stipulated in this Circular if they have fully contributed to the Fund and can benefit from a maximum of one (01) time for each type of support per contribution to the Fund. Notwithstanding, workers dispatched abroad under Decree No. 81/2003/NĐ-CP dated July 17, 2003 of the Government and the Law on Vietnamese Workers Working Abroad Under Contracts prior to the effectiveness of Decision No. 144/2007/QĐ-TTg of the Prime Minister, if they encounter risks during their contractual work period abroad, they will be supported in accordance with points a, b, and c of clause 3, Section II of this Circular.

3. Service enterprises violating the obligation to contribute to the Fund shall be subject to handling in accordance with Decree No. 144/2007/NĐ-CP dated September 10, 2007 of the Government.

4. Organizations and individuals sending workers abroad and Provincial Departments of Labor, Invalids, and Social Affairs shall be responsible for implementing and guiding workers to comply with the provisions of this Circular.

In cases where the organization sending workers abroad is dissolved or bankrupt, the Fund shall directly resolve risk support for workers.

5. The Ministry of Finance shall be responsible for inspecting and supervising the management and use of the Fund.

6. People's Committees of provinces and centrally administered cities shall be responsible for organizing, disseminating, and popularizing state support policies for workers dispatched abroad as stipulated in Decision No. 144/2007/QĐ-TTg of the Prime Minister and this Circular.

7. During the implementation process, any arising issues or difficulties should be reported to the Ministry of Labor, Invalids, and Social Affairs and the Ministry of Finance for prompt resolution./.