Circular No. 23/1999/TT-BLDTBXH guiding the implementation of the reduced working hours system for state-owned enterprises in a week.

CIRCULAR

Guidelines for Implementing Reduced Working Hours in a Week

for State-Owned Enterprises

Pursuant to the Labor Code dated June 23, 1994, and Decision No. 188/1999/QĐ-TTg dated September 17, 1999 of the Prime Minister on implementing the 40-hour workweek system, the Ministry of Labor, Invalids, and Social Affairs provides guidelines for implementing reduced working hours in a week for state-owned enterprises as follows:

I. OBJECTS AND SCOPE OF APPLICATION

- Cadres, workers, civil servants, and employees working in state-owned enterprises;

- Cadres, workers, civil servants, and employees working in economic units under administrative agencies, public institutions, political organizations, and political-social organizations shall apply the provisions according to the Law on State-Owned Enterprises.

State-owned enterprises, economic units, production-business-service establishments mentioned above shall hereinafter be referred to collectively as enterprises.

II. PRINCIPLES AND CONDITIONS FOR IMPLEMENTATION

1. Principles

a/ Enterprises shall decide on implementing reduced working hours in a week from 48 hours over six days to 40 hours over five days or 44 hours over 5.5 days; reasonably arrange shifts and bear responsibility for their decisions;

b/ Annually, based on the production-business plan, enterprises shall decide on reducing working hours in a week or maintaining the current 48-hour workweek over six days.

2. Conditions for Implementation

When implementing reduced working hours in a week, enterprises must ensure the following conditions:

a/ Production-business activities must ensure efficiency, profit, and fulfill all obligations to the State;

b/ Ensure wages and fully implement social insurance and health insurance regulations currently in effect;

c/ Not increase unit labor costs, product costs, or circulation fees;

d/ The daily wage for overtime pay, night shift pay, salary supplements, and social insurance benefits in lieu of salary, etc., shall still be implemented according to current regulations;

đ/ The total number of overtime hours in a year shall not exceed 200 hours as stipulated in current regulations;

e/ For workplaces operating on shifts, it is necessary to ensure compliance with rest periods between shifts and transitional breaks between two shifts for workers as prescribed in current regulations; ensure that workers have leave or compensatory leave for holidays and festivals, and organize weekly, annual, personal, and other types of leave as prescribed in current regulations;

f/ The shortened working time regime for workers in particularly arduous, hazardous, and dangerous occupations shall still be implemented according to Circular No. 16/LĐTBXH-TT dated April 23, 1997 of the Ministry of Labor, Invalids, and Social Affairs.

III. IMPLEMENTATION

1. The Board of Directors, General Director, and Director of the enterprise shall be responsible for:

a/ Discussing and building plans and measures to implement reduced working hours in a week, such as improving labor organization and rationalizing production to reduce production costs; investment and technological innovation measures to increase labor productivity;

b/ Once the decision to implement reduced working hours in a week has been made, these provisions must be included in the collective labor agreement and internal labor regulations;

c/ Coordinate with the trade union to organize training to improve professional skills and technical knowledge, and beneficial cultural and social activities on days off, creating a new spirit in production and improving the quality of life for workers' families;

d/ Report to the relevant ministries, sectors, and local authorities about the plans and measures to implement reduced working hours in a week, which have been agreed upon by the enterprise leadership and the trade union executive board;

Specifically, for the 91 Corporations, in addition to reporting to the management agency, they must report the plans and measures to implement reduced working hours in a week to the Ministry of Labor, Invalids, and Social Affairs and follow the regular reporting system as stipulated at point 3.b in Section III below;

đ/ Enterprises that have not yet met the conditions set out in point 2, Section II above shall continue to implement the current working hours and rest time regulations. Enterprises and the trade union shall develop plans to soon implement the reduced working hours in a week system;

2. Encourage enterprises and production-business establishments under other economic components and foreign organizations and international organizations in Vietnam that hire Vietnamese labor to implement reduced working hours in a week and report to the provincial Department of Labor, Invalids, and Social Affairs for monitoring;

3. Ministries, sectors, People's Committees of provinces and centrally-administered cities shall be responsible for:

a/ Directing agencies, departments, and sectors to guide and monitor the implementation of reduced working hours in a week by enterprises, promptly addressing any difficulties encountered during the implementation process by enterprises under their management;

b/ Reporting semi-annually and annually to the Ministry of Labor, Invalids, and Social Affairs on the implementation of reduced working hours in a week by enterprises; difficulties and obstacles faced by enterprises that need to be resolved to create favorable conditions for more enterprises to implement the reduced working hours in a week system according to the attached report form in this Circular;

The deadline for submitting reports is no later than June 15 for the mid-year report and December 15 for the annual report;

Specifically, for 1999, the results of implementation from October to December 1999 should be reported to the Ministry of Labor, Invalids, and Social Affairs before December 15, 1999;

4. The provincial Department of Labor, Invalids, and Social Affairs shall cooperate with the local Trade Union Federation to assist the provincial People's Committee in monitoring, guiding, inspecting, and creating a favorable environment for state-owned enterprises within their jurisdiction to properly implement the reduced working hours in a week system; while planning to promote and encourage non-state-owned enterprises within their jurisdiction to implement the reduced working hours in a week system according to government regulations and this Circular;

5. This Circular takes effect from October 2, 1999.

Any difficulties encountered during implementation should be reported to the Ministry of Labor, Invalids, and Social Affairs for resolution./.