Decision No. 20/2005/QD-BTC Issuing the Regulation on Management and Use of the Fund for Supporting Redundant Labor due to Restructuring State-Owned Enterprises

DECISION OF THE MINISTER OF FINANCE

Issuing the Regulation on Management and Use of the Fund for Supporting Redundant Labor due to State-Owned Enterprise Restructuring

reorganize state-owned enterprises

THE MINISTER OF FINANCE

Pursuant to Decree No. 86/2002/NĐ-CP dated November 5, 2002 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies;

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;

Based on Decree No. 41/2002/NĐ-CP dated April 11, 2002 of the Government on Policies for Redundant Labor due to State-Owned Enterprise Restructuring;

Based on Decree No. 155/2004/NĐ-CP dated August 10, 2004 of the Government amending and supplementing certain articles of Decree No. 41/2002/NĐ-CP dated April 11, 2002 of the Government on Policies for Redundant Labor due to State-Owned Enterprise Restructuring;

At the proposal of the Director of the Enterprise Finance Department,

DECISION:

Article 1. This Decision promulgates the Regulation on Management and Use of the Fund for Supporting Redundant Labor due to State-Owned Enterprise Restructuring.

Article 2. The Director of the Department of State-Owned Enterprise Finance is authorized to be the account holder and manage and operate the Fund for Supporting Redundant Labor due to State-Owned Enterprise Restructuring.

Article 3. This Decision takes effect fifteen days from the date of publication in the Official Gazette until December 31, 2005, and replaces Decision No. 85/2002/QĐ-BTC dated July 1, 2002 of the Minister of Finance promulgating the Regulation on Management and Use of the Fund for Supporting Redundant Labor due to State-Owned Enterprise Restructuring, and Decision No. 123/2003/QĐ-BTC dated August 1, 2003 of the Minister of Finance amending certain articles of the Regulation on Management and Use of the Fund for Supporting Redundant Labor due to State-Owned Enterprise Restructuring promulgated together with Decision No. 85/2002/QĐ-BTC dated July 1, 2002 of the Minister of Finance.

Ministers of Ministries, Heads of agencies at ministerial level, Heads of government agencies, Chairmen of People's Committees of provinces and centrally governed cities, Chairmen of State-owned Enterprise Management Councils, Heads of financial system units and national treasuries, and other organizations and individuals related thereto shall be responsible for implementing this Decision.

REGULATIONS

MANAGEMENT AND USE OF THE FUND FOR SUPPORTING REDUNDANT LABOR

REORGANIZE STATE-OWNED ENTERPRISES

DUE TO STATE-OWNED ENTERPRISE RESTRUCTURING

of the Minister of Finance)

I. GENERAL PROVISIONS

Article 1. (Issued together with Decision No. 20/2005/QĐ-BTC dated April 7, 2005)

Article 2. The Fund for Supporting Redundant Labor due to State-Owned Enterprise Restructuring (hereinafter referred to as the Fund) is established to support state-owned enterprises (hereinafter referred to as enterprises) in accordance with Clause 1, Article 1 of Decree No. 155/2004/NĐ-CP dated August 10, 2004 amending and supplementing certain articles of Decree No. 41/2002/NĐ-CP dated April 11, 2002 of the Government on policies for redundant labor due to state-owned enterprise restructuring (hereinafter referred to as Decree No. 155/2004/NĐ-CP), to implement assistance policies for workers falling under the provisions of Clause 2, Article 1 of Decree No. 155/2004/NĐ-CP who lose their jobs or retire early due to enterprise restructuring.

Article 3. The Fund is headquartered at the Ministry of Finance (Department of State-Owned Enterprise Finance - No. 4, Hang Chau Alley 1, Hang Chau Street, Hanoi) and opens an account at the National Treasury to receive and use funds according to the provisions of this Regulation.

- State budget;

The Fund is formed from:

- Donations from organizations and individuals;

- Other sources (if any).

Article 4. The Fund only supports enterprises in paying assistance to redundant workers as stipulated in this Regulation, and does not use it for any other purpose.

Article 5. The enterprise is responsible under the law for the accuracy and honesty in the application for funding from the Fund. The state agency approving the labor restructuring plan is responsible under the law for the accuracy of the review results of the application.

The state agency approving the labor restructuring plan:

- Ministries, agencies at ministerial level, and government agencies: for state-owned enterprises under central management (including independent accounting subsidiaries, dependent accounting units of independent accounting subsidiaries, and public service units of state-owned corporations).

- People's Committees of provinces and centrally governed cities: for state-owned enterprises under local management (including independent accounting subsidiaries, dependent accounting units of independent accounting subsidiaries, and public service units of state-owned corporations).

II. CONTENTS OF SUPPORT FROM THE FUND FOR SUPPORTING REDUNDANT LABOR

Article 6. Recipients of Support from the Fund

1. Redundant workers (including those of state-owned agricultural and forestry farms) as defined in Clause 2, Article 1 of Decree No. 155/2004/NĐ-CP.

2. Positions appointed by competent authorities as defined in Point 4, Section II of Resolution No. 09/2003/NQ-CP dated July 28, 2003 of the Government amending and supplementing Resolution No. 16/2000/NQ-CP dated October 18, 2000 of the Government on streamlining staff in administrative agencies and public service units (referred to as Resolution No. 09/2003/NQ-CP) who are decided by competent authorities to cease work or retire early due to inability to arrange work at the time the enterprise implements restructuring.

Article 7. Scope of Support from the Fund

1. The portion of expenses under the responsibility of the Fund:

1.1. The amount of assistance for workers as specified in Point b, Clause 1, Clause 2, and Point b, Point c, Clause 3, Article 3; Clause 2, Article 4 of Decree No. 41/2002/NĐ-CP dated April 11, 2002 of the Government on policies for redundant labor due to state-owned enterprise restructuring (hereinafter referred to as Decree No. 41/2002/NĐ-CP).

1.2. The amount of assistance for positions defined in Point 4, Section II of Resolution No. 09/2003/NQ-CP as specified in Point b, Point c, Point d, and Point đ, Clause 4, Section II of Resolution No. 16/2000/NQ-CP dated October 18, 2000 on streamlining staff in administrative agencies and public service units.

2. The Fund supports the portion of expenses under the responsibility of the enterprise:

2.1. The entire amount of assistance for redundant workers under the responsibility of the enterprise as specified in Clause 1, Article 8 of Decree No. 41/2002/NĐ-CP in cases where state-owned enterprises are dissolved or bankrupt.

2.2. The remaining amount of assistance for redundant workers under the responsibility of the enterprise as specified in Clause 1, Article 8 of Decree No. 41/2002/NĐ-CP, after the enterprise has used up the reserve fund for unemployment assistance established at 3% of the wage base for social insurance contributions. Specifically:

a) Use up the Unemployment Benefit Reserve Fund of the company for the case of restructuring the dependent accounting unit of an independent state-owned enterprise or an independent accounting subsidiary of a corporation.

b) Use up the Unemployment Benefit Reserve Fund of the state corporation for the case of restructuring the dependent accounting unit and the affiliated public service unit of the state corporation.

c) Use up the Unemployment Benefit Reserve Fund of the company being merged, merging with another company, or companies being consolidated for the case of merger or consolidation.

d) Use up the Unemployment Benefit Reserve Fund of the parent company for the case of splitting off or separating the company.

2.3. The remaining funding required to provide benefits to workers who are allocated land or forest from state-owned agricultural or forestry enterprises according to the level specified in Article 42 of the Labor Code and the guidance of the Ministry of Labor, Invalids, and Social Affairs, after using up the Unemployment Benefit Reserve Fund established at 3% of the payroll basis for social insurance contributions of the enterprise.

Article 8. The recovery of funds to the Reserve Fund

Workers who have received benefits from the Reserve Fund, if re-employed by the company that previously terminated their employment, or re-employed by another state-owned company or agency, or allocated land or forest by agricultural or forestry enterprises, must return the amount of money as stipulated in Point 3, Section II of Circular No. 19/2004/TT-BLDTBXH dated November 22, 2004, issued by the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of 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, which has been amended and supplemented by Decree No. 155/2004/NĐ-CP dated August 10, 2004, of the Government (hereinafter referred to as Circular No. 19/2004/TT-BLDTBXH).

The entity hiring labor is responsible for recovering the amount of benefit that the worker must repay and deposit it into the Reserve Fund's account immediately after signing the labor contract, at the following address:

Recipient: Reserve Fund for Surplus Labor Due to Restructuring State-Owned Enterprises - Department of Corporate Finance

Account number: 942.08

At: State Treasury Transaction Office

Simultaneously, notify in writing the Reserve Fund for Surplus Labor.

The hiring entity and the re-employed worker shall be held legally responsible if they violate the provisions of this Article.

III. ALLOCATION OF FUNDS FROM THE FUND TO COMPANIES

Article 9. Basis for determining the level of assistance

1. For state-owned companies implementing restructuring or reorganization under Article 17 of the Labor Code, based on the date recorded in the decision terminating the employment of workers to determine the period during which workers are entitled to benefits as provided in models 7, 8, 9, 10, 10b issued together with Circular 19/2004/TT-BLDTBXH, model 1b, 1c issued together with Circular No. 73/2000/TTLT-BTCCBCP-BTC dated December 28, 2000, of the Civil Service Organization Committee of the Government and the Ministry of Finance on guiding the implementation of policies to streamline staffing in administrative agencies and public service units (referred to hereafter as Circular No. 73/2000/TTLT-BTCCBCP-BTC).

2. For joint-stock companies converted through shareholding from state-owned companies, dependent accounting units of state-owned companies, independent accounting subsidiaries, and dependent accounting units of independent accounting subsidiaries belonging to corporations that have restructuring plans under Article 17 of the Labor Code confirmed by competent authorities within 12 months from the date of obtaining business registration certificates under the Enterprise Law:

2.1. Benefits for workers retiring early, workers reaching retirement age but lacking up to one year of social insurance contributions (as provided in models 7, 8 issued together with Circular 19/2004/TT-BLDTBXH) are calculated up to the date of the decision terminating the employment of workers.

2.2. Benefits for workers losing their jobs, terminating their employment (as provided in models 9, 10, 10b issued together with Circular 19/2004/TT-BLDTBXH) are calculated up to the date the company obtains its business registration certificate under the Enterprise Law.

3. The level of assistance for each worker is determined according to the provisions of Circular No. 19/2004/TT-BLDTBXH, where the period for calculating assistance is the actual time the worker worked in the state sector (with attendance and listed in the payroll).

Article 10. Documents and procedures

1. After the Labor Adjustment Plan is approved, the company is responsible for preparing a budget for funding to provide benefits to workers according to the provisions of Clause c2, Point 1, Part IV of Circular No. 19/2004/TT-BLDTBXH; The budget for funding for the positions specified in Point 4, Section II of Resolution No. 09/2003/NQ-CP is prepared according to Model 1c, 1b issued together with Circular Joint Circular No. 73/2000/TTLT-BTCCBCP-BTC.

Before submitting the documents, the company must publicly post the list of surplus workers and the budget for funding the benefits for surplus workers as determined in Models 7, 8, 9, 10, 10b issued together with Circular 19/2004/TT-BLDTBXH, Model 1b, 1c issued together with Circular No. 73/2000/TTLT-BTCCBCP-BTC for workers to check and verify.

2. The application documents for funding allocation are defined for each case of company restructuring in Appendix 1 attached to this Regulation.

3. Deadline for submission:

3.1. Not later than 120 days from the date the competent authority approves the restructuring plan (for state-owned enterprises holding 100% capital).

3.2. Not later than 90 days from the date the competent authority approves the restructuring plan for state-owned enterprises undergoing restructuring (converting to a limited liability company with one or more members, merging, consolidating, splitting off, separating, contracting management, leasing, converting to a public service unit, privatizing, transferring, selling, dissolving, bankruptcy).

3.3. Not later than 30 days from the date the joint-stock company operates for one year for joint-stock companies undergoing restructuring under Article 17 of the Labor Code.

3.4. In cases where the documents are submitted late, approval from the authority approving the Labor Adjustment Plan is required.

Article 11. Submitting Documents

The company must submit the dossier prescribed in Article 10 of this Regulation to the Fund, the agency approving the labor restructuring plan, the Ministry of Labor - Invalids and Social Affairs, the social insurance agency where the company participates in social insurance contributions, the Department of Labor - Invalids and Social Affairs, and retain a copy of the dossier at the company.

In cases where the company has completed the conversion but has not yet received the funds, the company shall notify in writing the new name and account number to the Fund.

Article 12. Decision to disburse from the Fund

1. Within ten working days from the date of receiving all required documents, the Fund shall issue a decision to disburse from the Fund.

The decision to disburse from the Fund shall be sent to the company, the agency approving the labor restructuring plan, the Ministry of Labor - Invalids and Social Affairs, the State Treasury, and the social insurance agency that provides funding for social insurance contributions for workers.

2. If the submitted documents do not meet the requirements stipulated, within five working days from the date of receipt of the documents, the Fund shall notify in writing the agency approving the labor restructuring plan and the company to complete the documents.

Article 13. Allocation of funds

Within five working days from the date of issuing the decision to disburse from the Fund, the Fund shall implement:

- Allocation of surplus labor assistance funds into the company's account (or the account of the organization responsible for disbursing surplus labor assistance funds as stated in the application for funding for state-owned enterprises undergoing dissolution or bankruptcy).

- Allocation of the amount needed to cover social insurance contributions for workers who have reached retirement age but lack up to one year of social insurance contributions into the account of the social insurance agency.

Article 14. Payment Organization

After receiving funds from the Fund, the company must carry out:

1. Publicly post the amount of benefits each worker is entitled to for a minimum period of three working days.

2. Disburse assistance to surplus workers within fifteen working days from the date of receipt of funds.

Payments must be made to the correct recipients and in the correct amounts according to the approved list; payment vouchers must be prepared in accordance with current regulations; a list of workers receiving assistance (Annex 3 of this Regulation) must be compiled. Workers, authorized representatives, or estate managers under civil law regulations must sign the payment vouchers and lists.

3. The agency approving the labor restructuring plan and state-owned corporations are responsible for directing, supervising, and inspecting the payment of assistance to surplus workers. Trade unions are responsible for monitoring and inspecting according to their functions.

Article 15. Final Report on Fund Utilization

1. For funds allocated to the company:

1.1. Within forty-five working days from the date of receipt of funds, the company must prepare a final report on fund utilization, including:

- A list of workers receiving assistance (Annex 3 of this Regulation)

- A report on the use of funds provided by the Fund (Annex 4 of this Regulation)

- A report on the results of implementing labor restructuring as specified in item e point 1 Part IV Circular No. 19/2004/TT-BLĐTBXH.

The company is responsible for the accuracy and honesty of the final report on fund utilization.

1.2. The agency approving the labor restructuring plan and state-owned corporations are responsible for urging companies to prepare final reports and reviewing/approving these reports within ten working days from the date of receipt of the final report.

Within sixty working days from the date of receipt of funds, the company must submit the approved final report to the Fund (original). Failure to submit within this timeframe will result in administrative penalties for the company director and related individuals.

1.3. For state-owned joint-stock companies restructuring under Article 17 of the Labor Code, if they have not submitted the approved final report on fund utilization at the time of shareholding reform, they will not be eligible for further funding from the Fund.

2. For funds allocated to the social insurance agency: Within thirty days from the date of receipt of funds, the social insurance agency must prepare a report on the use of funds according to Annex 5 of this Regulation and send it to the Fund.

Article 16. Any remaining funds after payments to workers must be immediately transferred to the Fund's account before finalizing the report.

IV. ALLOCATION OF FUNDS TO VOCATIONAL TRAINING INSTITUTIONS

Article 17. Preparation and Review of Funding Application Dossier

1. Vocational training institutions for surplus workers must prepare and submit an application for vocational training funding (Annex 6 of this Regulation), along with original free training certificates and copies of decisions to terminate employment of surplus workers enrolled in training to the Department of Labor - Invalids and Social Affairs and the Department of Finance where the training institution is located.

The training institution is responsible for the truthfulness and accuracy of the application for vocational training funding.

2. The Department of Labor - Invalids and Social Affairs is responsible for verifying the actual number of surplus workers trained at the vocational training institution and the duration of training (maximum six months).

The Department of Finance is responsible for verifying the training expenditure rate, which cannot exceed 350,000 VND per person per month (three hundred fifty thousand dong per person per month).

Article 18. Procedures for Disbursement from the Fund

1. Within ten working days from the date of receiving all required documents from the vocational training institution, the Fund shall issue a decision to allocate funds and send it to the vocational training institution, the Department of Labor - Invalids and Social Affairs, the Department of Finance where the vocational training institution is located, the Ministry of Labor - Invalids and Social Affairs, and the State Treasury.

If the submitted documents do not meet the requirements stipulated, within five working days from the date of receipt of the documents, the Fund shall notify in writing the vocational training institution, the Department of Labor - Invalids and Social Affairs, and the Department of Finance to complete the documents.

2. Within five working days after issuing the decision to disburse from the Fund, the Fund shall allocate funds into the vocational training institution's account.

V. RECORD KEEPING AND REPORTING SYSTEM

Article 19. The Fund is responsible for maintaining records to monitor the mobilization and use of Fund resources and conducting accounting in accordance with current financial management regulations.

Accounting entries must be clear and complete, ensuring timely updates of all activities and organizing the storage of documents and vouchers in accordance with established regulations.

Article 20. Not later than forty-five days after the end of the fiscal year, the Fund must complete the annual settlement report to submit to the Minister of Finance for reporting to the Prime Minister.

Article 21. Companies, social insurance agencies, vocational training facilities receiving funds from the Fund shall be responsible for keeping books, vouchers, and relevant documents related to the use of funds in accordance with current regulations to serve the inspection and supervision work of the Fund and related agencies.

In cases of violation of storage regulations, the heads of the above units and those involved will be subject to administrative penalties under current laws.

VI. IMPLEMENTATION

Article 22. Responsibilities of agencies and surplus workers:

1. The agency approving the labor adjustment plan, based on the results of approving the overall adjustment plan for state-owned enterprises according to Decision No. 155/2004/QĐ-TTg dated August 24, 2004 of the Prime Minister promulgating criteria and classification lists for state-owned enterprises and independent accounting subsidiaries of state-owned holding companies, shall prepare plans for adjusting labor and funding requirements for surplus worker allowances for the year 2005 and submit them to the Fund and the Ministry of Labor, Invalids, and Social Affairs before May 30, 2005 (Annex No. 07, this Regulation).

If the labor adjustment plan and funding requirements for surplus worker allowances are not submitted to the Fund, it will be considered that there is no need for financial support from the Fund.

2. The agency approving the labor adjustment plan, state-owned holding companies, provincial Departments of Labor, Invalids, and Social Affairs, companies, social insurance agencies, vocational training facilities, and surplus workers shall be responsible for implementing the provisions of this Regulation.

3. State-owned holding companies shall be responsible for reviewing and verifying the application forms for funding from subsidiaries operating independently, dependent units of independent subsidiaries, and public service units of the holding company before submitting them to the agency approving the labor adjustment plan.

Article 23. Responsibilities of units under the Ministry of Finance:

1. The Department of Corporate Finance shall be responsible for:

1.1. Summarizing the expenditure needs of the Fund, preparing plans for raising and using Fund resources, and reporting to the Minister of Finance for approval;

1.2. Receiving and reviewing files sent by companies and vocational training facilities; issuing decisions to allocate funds to companies, social insurance agencies, and vocational training facilities in accordance with the deadlines stipulated in this Regulation;

1.3. Supervising the implementation of policies and systems for handling surplus labor in companies funded by the Fund;

1.4. Implementing record-keeping, accounting, and reporting systems for the Fund in accordance with this Regulation.

2. The State Treasury shall be responsible for:

2.1. Allocating funds to companies, social insurance agencies, and vocational training facilities according to the Fund disbursement decision;

2.2. Conducting treasury oversight over the use of funds by companies, social insurance agencies, and vocational training facilities in accordance with regulations.

3. The Financial Inspectorate shall be responsible for inspecting the use of funds received from the Fund at companies, social insurance agencies, and vocational training facilities.

Article 24. Provincial Finance Departments shall assist the Chairman of the People's Committee of provinces and centrally-administered cities in reviewing applications for financial support from the Fund and reviewing applications for funding from vocational training facilities.