Circular No. 170/2009/TT-BTC guides the provision of financial support for labor restructuring after shareholding reform for enterprises under the Vietnam Textile and Garment Group. The document applies to workers who lose their jobs or resign within five years from the date the joint-stock company receives its first business registration certificate.
Scope of application
Workers who lose their jobs or resign at joint-stock companies under the Vietnam Textile and Garment Group after the enterprise has completed the shareholding reform process.
Key points
- Workers who lose their jobs or resign within five years from the date the joint-stock company receives its first business registration certificate will be provided with financial support.
- In the first year, workers are supported with the actual total amount of severance pay. From the second to the fifth year, the joint-stock company must pay 50%, and the Enterprise Restructuring Support Fund at the Vietnam Textile and Garment Group will cover the remaining 50%. After the fifth year, the joint-stock company is fully responsible.
- Financial support from the Enterprise Restructuring Support Fund at the Vietnam Textile and Garment Group, and if insufficient, it will be covered by the Central Enterprise Restructuring Support Fund.
- Joint-stock companies provide severance pay to workers when they have a decision to terminate employment according to regulations. Subsequently, they compile a list and prepare a file to request financial support from the Vietnam Textile and Garment Group.
- Responsibilities include calculating, paying, and settling severance payments for workers; providing financial support from the Enterprise Restructuring Support Fund; and compiling reports to the Prime Minister for budget coordination.
🌐 Social impact of this document
- Positive impact: Helps reduce the financial burden on joint-stock companies during labor restructuring after shareholding reform, protecting worker rights.
- Negative impact: May create cost pressure on businesses, especially when the support fund is insufficient to cover payments.
❓ Frequently asked questions
How long are workers who lose their jobs or resign supported?
Workers who lose their jobs or resign within five years from the date the joint-stock company receives its first business registration certificate.
What is the specific level of support?
In the first year, workers are supported with the actual total amount of severance pay. From the second to the fifth year, the joint-stock company must pay 50%, and the Enterprise Restructuring Support Fund at the Vietnam Textile and Garment Group will cover the remaining 50%. After the fifth year, the joint-stock company is fully responsible.
What documents does a joint-stock company need to prepare to request support?
Documents include: A request letter to the Enterprise Restructuring Support Fund at the Vietnam Textile and Garment Group for financial support; A plan for labor restructuring; A list of regular employees at the time of the shareholding reform decision; A report on the amount of severance pay due to workers entitled to severance benefits; A financial settlement report for the three consecutive years prior to the company's initial business registration; A detailed report on the establishment and use of the reserve for severance pay by the enterprise in the three consecutive years prior to the company's initial business registration; A copy of the initial business registration certificate.
What is the process for providing financial support?
After workers who lose their jobs or resign are eligible for severance pay according to Article 2 of this Circular, joint-stock companies provide severance pay to workers. Then, the joint-stock company compiles a list and prepares a file to request financial support for surplus labor policies from the Vietnam Textile and Garment Group.
What should the enterprise do if the fund is insufficient?
If the Enterprise Restructuring Support Fund at the Vietnam Textile and Garment Group lacks sufficient resources to support joint-stock companies, the Vietnam Textile and Garment Group is responsible for sending a letter and accompanying documents to the Ministry of Finance for consideration and decision on transferring the shortfall from the Central Enterprise Restructuring Support Fund to the Enterprise Restructuring Support Fund at the Vietnam Textile and Garment Group.
Full text
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MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIETNAM |
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Number: 170/2009/TT-BTC |
Hanoi, August 24, 2009 |
CIRCULAR
Guidelines for implementing financial support for labor restructuring after shareholding reform for enterprises under the Vietnam Textile and Garment Group arrangement of labor after equitization for enterprises under the Vietnam National Textile and Garment Group
_________________________
Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;
Pursuant to Decision No. 113/2008/QĐ-TTg dated August 18, 2008 of the Prime Minister on the establishment and issuance of the Management and Usage Regulations of the Central Enterprise Restructuring Support Fund;
Implementing the guidance of the Prime Minister in Circular No. 1368/VPCP-ĐMDN dated March 5, 2009 of the Government Office on financial support for labor restructuring after shareholding reform for enterprises under the Vietnam Textile and Garment Group, the Ministry of Finance hereby provides specific guidelines as follows:
Article 1. Scope of application:
Joint-stock companies converted from wholly state-owned enterprises under the Vietnam Textile and Garment Group according to Decree No. 187/2004/NĐ-CP dated November 16, 2004 of the Government on converting state-owned enterprises into joint-stock companies and registering business operations after August 1, 2007 (the date when Decree No. 109/2007/NĐ-CP dated June 26, 2007 of the Government on converting wholly state-owned enterprises into joint-stock companies took effect).
Article 2. Recipients of support:
Workers who lose their jobs or resign (listed in the regular workforce roster at the time of the decision to convert to a joint-stock company) within five years from the date the joint-stock company first obtains its business registration certificate.
Article 3. Level of support, source of severance pay funding
3.1. Level of support for job loss and resignation:
a) Within twelve months from the date the joint-stock company first obtains its business registration certificate, if workers in the company lose their jobs or resign, they will receive severance pay according to current labor laws.
Joint-stock companies with workers losing their jobs or resigning as mentioned above will be supported financially by the Vietnam Textile and Garment Group's Enterprise Restructuring Support Fund to pay the workers. The level of support equals the total actual severance pay paid to the workers after using the company's established reserve fund for job loss compensation as stipulated by current laws.
b) From the second year to the fifth year from the date the joint-stock company first obtains its business registration certificate, if workers lose their jobs or resign, the joint-stock company is responsible for paying fifty percent of the total severance pay according to the Labor Code, while the remaining amount will be covered by the Vietnam Textile and Garment Group's Enterprise Restructuring Support Fund. After this period, the joint-stock company is responsible for paying the full severance pay to the workers according to the Labor Code.
3.2. Source of severance pay funding:
Enterprises subject to Article 1 of this Circular will be supported financially from the Vietnam Textile and Garment Group's Enterprise Restructuring Support Fund to pay workers who have resigned or lost their jobs according to the support levels specified in Point 3.1 of Article 3 of this Circular.
In cases where the Vietnam Textile and Garment Group's Enterprise Restructuring Support Fund does not have sufficient funds to cover the payments, the Central Enterprise Restructuring Support Fund will cover the shortfall.
Article 4. Procedures for payment and financial support:
4.1 When workers lose their jobs or resign and are eligible for severance pay according to the provisions of Article 2 of this Circular, joint-stock companies shall pay severance pay to the workers upon receipt of the decision to terminate employment due to job loss or resignation. Subsequently, the joint-stock company shall compile a list and prepare a request for the Vietnam Textile and Garment Group to provide financial support for surplus labor policies.
4.2. Documents required for requesting financial support for labor policy resolution include:
a. A letter requesting the Vietnam Textile and Garment Group's Enterprise Restructuring Support Fund to provide financial support for resolving surplus labor policies of the enterprise;
b. A labor restructuring plan approved by the Board of Directors of the joint-stock company (model attached as Appendix 1 to this Circular);
c. Regular workforce roster at the time of the decision to convert the enterprise to a joint-stock company;
d. Report on the amount of funds to be paid to workers entitled to severance pay (model attached as Appendix 2 to this Circular), along with documents to determine the level of severance pay;
đ. Financial settlement report for the three years immediately preceding the year the company obtained its initial business registration certificate;
e. Detailed report on the establishment and use of the reserve fund for job loss compensation of the enterprise for the three years immediately preceding the year the company obtained its initial business registration certificate;
g. Copy of the initial business registration certificate.
4.3. Financial support for resolving labor policies from the Vietnam Textile and Garment Group's Enterprise Restructuring Support Fund for each of the aforementioned enterprises will be provided annually.
4.4. Implementation of support.
Within ten working days from the date of receiving complete applications from joint-stock companies requesting financial support for job loss and resignation, the Vietnam Textile and Garment Group shall examine and issue decisions to provide financial support to the companies according to this Circular. If the application does not meet the requirements or contains errors in calculations, the Vietnam Textile and Garment Group must notify the enterprise in writing within five working days from the date of receiving the complete application to correct and supplement the information.
4.5. In cases where the Vietnam Textile and Garment Group's Enterprise Restructuring Support Fund does not have sufficient funds to support joint-stock companies, the Vietnam Textile and Garment Group shall send a letter and supporting documents to the Ministry of Finance for consideration and decision on reallocating the shortfall from the Central Enterprise Restructuring Support Fund to the Vietnam Textile and Garment Group's Enterprise Restructuring Support Fund.
Documents required for requesting financial support from the Ministry of Finance include:
a. Letter requesting support from the Group;
b. Report on the management and usage of the Enterprise Restructuring Support Fund of the Group.
c. Budget for expenses proposed to address policies for surplus labor according to the Labor Code of joint-stock companies, specifying the amount of funds lacking and requesting support from the Central Enterprise Restructuring Support Fund.
d. The Ministry of Industry and Trade's opinions on the contents reported by the Vietnam Textile and Garment Group at points a, b, and c of this clause.
Article 5. Responsibilities of units:
5.1. Joint-stock companies are responsible for calculating, paying, and settling severance pay for employees in accordance with the prescribed regulations and this Circular, and shall be liable under the law for the payment of severance to employees.
5.2. The Vietnam Textile and Garment Group is responsible for providing financial support to enterprises within the scope stipulated in this Circular and shall be liable under the law for the provision of financial support to enterprises.
5.3. The Ministry of Finance is responsible for compiling reports to the Prime Minister to coordinate funds from the Central Enterprise Restructuring Support Fund to the Enterprise Restructuring Support Fund at the Vietnam Textile and Garment Group.
5.4. The State Capital Investment Corporation is responsible for providing financial support to the Vietnam Textile and Garment Group (in cases where the Enterprise Restructuring Fund at the Vietnam Textile and Garment Group does not have sufficient resources), pursuant to the Decision of the Ministry of Finance regarding the coordination of funds from the Central Enterprise Restructuring Support Fund to the Enterprise Restructuring Support Fund at the Vietnam Textile and Garment Group.
Article 6. Implementing organization.
This Circular takes effect 45 days from the date of signature. In addition to implementing the provisions of this Circular, the Vietnam Textile and Garment Group shall implement the support for resolving surplus labor in accordance with the Decision No. 09/2008/QD-BTC dated January 31, 2008, issued by the Minister of Finance on the management and use of the Enterprise Restructuring Support Fund at State-owned Groups, Corporations, and Parent Companies, and Decision No. 104/2008/QD-BTC dated November 13, 2008, issued by the Minister of Finance amending and supplementing the management and use of the Enterprise Restructuring Support Fund at State-owned Groups, Corporations, and Parent Companies, attached to Decision No. 09/2008/QD-BTC dated January 31, 2008.
During implementation, if there are any difficulties, units are requested to report to the Ministry of Finance for research and resolution./.
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Place of Receipt: - Prime Minister, Deputy Prime Ministers; - Government Office; - Central Party Office and its Departments; - President's Office; - National Assembly's Office; - Office of the Central Steering Committee for Anti-Corruption; - State Audit Office; - MINISTRY OF INDUSTRY AND TRADE; - Vietnam Textile and Garment Group; - State Capital Investment Corporation; - Supreme People's Procuracy; - Supreme People's Court; - Department of State Budget, Department of Planning and Finance; - Official Gazette; - Ministry of Justice's Legal Documents Inspection Department; - Government website; - Ministry of Finance website; - TO BE FILED: VT, Department of Corporate Value. |
DEPUTY MINISTER DEPUTY MINISTER (Signed) Tran Xuan Ha
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Appendix 1
Model Report on Labor Adjustment Plan
(Attached to Circular No. ... dated ... month ... year 2009 of the Ministry of Finance)
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NAME OF ENTERPRISE |
SOCIALIST REPUBLIC OF VIETNAM ------------------------------------ |
LABOR RESTRUCTURING PLAN
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No. |
CONTENT |
TOTAL |
Remaining facilities listed in Appendix III of Decree No. 50/2024/NĐ-CP |
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I |
Total number of workers at the time of enterprise restructuring. |
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- Workers not covered by employment contracts |
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- Workers employed under indefinite-term employment contracts |
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- Workers employed under fixed-term employment contracts from three months to 36 months |
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- Workers employed seasonally or for a specific job for less than three months |
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II |
Number of workers who will stop working at the time of enterprise restructuring. |
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1 |
Number of workers eligible for retirement under current regulations |
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2 |
Number of workers whose employment contracts will be terminated, broken down as follows: |
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- Expiration of employment contracts |
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- Voluntary termination of employment contracts |
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- Number of workers unable to be re-employed |
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APPROVAL OF THE BOARD OF DIRECTORS JOINT-STOCK COMPANY |
Name of the Port Direction Department where the participant works.…....month...year 20.. ENTERPRISE DIRECTOR (Signature, stamp) |
DIRECTOR OF THE STATE BANK OF VIETNAM
Model Report on List of Workers Terminating Employment Entitled to Unemployment Benefits
(Attached to Circular No. ... dated ... month ... year 2009 of the Ministry of Finance)
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NAME OF ENTERPRISE |
SOCIALIST REPUBLIC OF VIETNAM ------------------------------------ |
LIST OF WORKERS TERMINATING EMPLOYMENT ENTITLED TO UNEMPLOYMENT BENEFITS
OCCUPATION, POSITION
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No. |
Full Name |
Date of Birth |
Date of recruitment |
Date of unemployment, termination |
Duration of benefit entitlement |
Total severance pay (VND) |
Actual severance paid (VND) |
Responsibility of the Enterprise Restructuring Fund (VND) |
Employee signature |
I. List of unemployed workers
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| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 |
| II. List of terminated workers | ||||||||||
| ................... | ||||||||||
| II. List of those terminating employment | ||||||||||
| (*) The basis for budgeting expenses is based on the current regulations of the Ministry of Finance regarding travel expenses for civil servants and employees of the State going on short-term business trips abroad funded by the state budget. |
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Name of the Port Direction Department where the participant works.…....month...year 20... ENTERPRISE DIRECTOR (Signature, stamp) |
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