Decision No. 30/2009/QD-TTg On Supporting Workers Losing Their Jobs in Enterprises Struggling Due to Economic Downturn

Pursuant to …;

Regarding support for workers who lose their jobs in enterprises facing difficulties due to economic downturns

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PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Labor Code dated June 23, 1994; the Law Amending and Supplementing Certain Provisions of the Labor Code dated April 2, 2002; the Law Amending and Supplementing Certain Provisions of the Labor Code dated November 29, 2006;

Pursuant to Resolution No. 30/2008/NQ-CP dated December 11, 2008 of the Government on urgent measures to prevent economic decline, maintain economic growth, and ensure social welfare;

Considering the proposal of the Minister of Labor, Invalids, and Social Affairs, and the Minister of Finance,

DECISION:

Article 1. In 2009, enterprises facing difficulties due to economic downturns that are unable to pay salaries, contribute to social insurance, and provide severance pay or termination benefits as prescribed to workers who have lost their jobs shall be eligible for state loans to settle these obligations, specifically as follows:

1. Borrower: enterprises facing difficulties due to economic downturns that must reduce their workforce by 30% or more, or by 100 workers or more (excluding temporary workers with contracts under three months), and which, despite utilizing all available resources within the enterprise, still cannot pay salaries, contribute to social insurance, and provide severance pay or termination benefits to the reduced workforce.

2. Loan period: up to 12 months.

3. Maximum loan amount: the maximum loan amount shall be equal to the funds required to settle outstanding salary payments, social insurance contributions, and severance pay or termination benefits owed to workers who have lost their jobs.

4. Interest rate on the loan: 0% (zero percent).

5. Lender: Vietnam Development Bank.

Article 2. For workers who lose their jobs at enterprises where the business owner has fled in 2009:

The People's Committee of provinces and centrally-administered cities shall advance local budget funds to pay workers listed on the payroll of the enterprise the outstanding salary owed to them. The temporarily advanced local budget funds will be reimbursed from the proceeds of asset disposal of the enterprise according to the provisions of the law. If the proceeds from asset disposal are insufficient, it shall report to the Prime Minister for consideration and decision.

Article 3. Workers who lose their jobs in 2009 as stipulated in Article 1 and Article 2 of this Decision, and workers who lose their jobs abroad due to the enterprise's difficulties and return to the country earlier than planned, shall enjoy the following policies:

1. They may borrow from the National Employment Fund under the National Target Program on Employment to create self-employment.

2. They may borrow to learn a trade according to Decision No. 157/2007/QĐ-TTg dated September 27, 2007 of the Prime Minister on credit for students and trainees for a period of 12 months, starting from the date they lost their job.

3. They may borrow from the Social Policy Bank as specified in Decision No. 365/2004/QĐ-NHNN dated April 13, 2004 of the State Bank of Vietnam for a period of 12 months, starting from the date they lost their job or returned to the country.

Article 4. Responsibilities of agencies

1. Enterprises:

a) Develop a labor restructuring plan, determine the need for borrowing, and prepare a borrowing application as prescribed;

b) Pay salaries, contribute to social insurance, and provide severance pay or termination benefits to workers within seven days from the date of receiving the loan;

c) Report to the Department of Labor, Invalids, and Social Affairs on the implementation of the labor restructuring plan, payment of salaries, contribution to social insurance, and provision of severance pay or termination benefits to workers as prescribed by the Ministry of Labor, Invalids, and Social Affairs.

2. The Ministry of Labor, Invalids and Social Affairs:

a) Take the lead and coordinate with the Ministry of Finance and relevant agencies to guide and inspect the implementation of this Decision;

3. The Social Policy Bank shall organize lending to workers whose land has been reclaimed according to this Decision.

3. The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance:

a) Supplement funding for the National Employment Fund under the National Target Program on Employment;

b) Allocate funds to cover interest subsidies for the Social Policy Bank to lend for vocational training and working abroad as stipulated in Clause 2 and Clause 3, Article 3 of this Decision.

4. The Ministry of Finance shall take the lead and coordinate with the Ministry of Planning and Investment to allocate funds to cover interest subsidies for the Vietnam Development Bank to lend to enterprises to settle salary payments, social insurance contributions, and severance pay or termination benefits as stipulated in Article 1 of this Decision and guide provinces and centrally-administered cities to implement it.

5. The Vietnam Development Bank shall be responsible for raising funds and organizing lending as stipulated in Article 1 of this Decision.

6. The Social Policy Bank shall be responsible for raising funds and organizing lending as stipulated in Article 3 of this Decision.

Article 5. Implementation Provisions:

1. This Decision takes effect from the date of signature.

2. The Ministers, Heads of Ministries equivalent to Ministries, Heads of Government Agencies, Chairmen of Provincial People's Committees, Chairmen of the Management Councils and General Directors of the Social Policy Bank, Chairmen of the Management Councils and General Directors of the Vietnam Development Bank shall be responsible for implementing this Decision./.