Circular No. 38/2010/TT-BLDTBXH guiding the implementation of certain provisions of Government Decree No. 91/2010/NĐ-CP dated August 20, 2010 on policies for redundant workers when restructuring state-owned limited liability companies with one member.

CIRCULAR

Guidelines for Implementing Certain Provisions of Decree No. 91/2010/NĐ-CP dated August 20, 2010

of the Government on Policies for Surplus Workers when Reorganizing State-Owned Limited Liability Companies

limited liability company with a single member owned by the State

_____________________________

Pursuant to Decree No. 91/2010/NĐ-CP dated August 20, 2010 of the Government on Policies for Surplus Workers when Reorganizing State-Owned Limited Liability Companies (hereinafter referred to as Decree No. 91/2010/NĐ-CP);

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, Invalids and Social Affairs;

After receiving opinions from relevant ministries and agencies, the Ministry of Labor, Invalids and Social Affairs provides guidelines for implementing certain provisions of Decree No. 91/2010/NĐ-CP as follows:

Article 1. Scope of Regulation

This Circular guides the implementation of certain provisions of Decree No. 91/2010/NĐ-CP regarding policies for surplus workers in state-owned limited liability companies or those owned by political organizations or political-social organizations converted from state enterprises or enterprises under political organizations or political-social organizations in accordance with Decree No. 63/2001/NĐ-CP dated September 14, 2001, Decree No. 145/2005/NĐ-CP dated November 21, 2005, Decree No. 95/2006/NĐ-CP dated September 8, 2006, and Decree No. 25/2010/NĐ-CP dated March 19, 2010, but have not yet implemented labor surplus policies according to Decree No. 41/2002/NĐ-CP dated April 11, 2002, Decree No. 155/2004/NĐ-CP dated August 10, 2004, Resolution No. 06/2006/NQ-CP dated May 4, 2006, Resolution No. 07/2007/NQ-CP dated February 6, 2007, and Decree No. 110/2007/NĐ-CP dated June 26, 2007 of the Government, now continue to reorganize according to the plan approved by the competent authority, including:

1. Shareholding, transfer, sale.

2. Conversion into a limited liability company with two or more members.

3. Conversion into a public service unit.

4. Dissolution, bankruptcy.

State-owned limited liability companies or those owned by political organizations or political-social organizations hereinafter collectively referred to as companies.

Article 2. Applicability

1. Workers who are currently performing indefinite-term employment contracts (including workers who were recruited to work at the company before August 30, 1990 but had not signed written employment contracts by the time the decision to reorganize or convert the company was made) or fixed-term contracts ranging from 12 to 36 months in the companies specified in Article 1 of this Circular, including:

a) Workers recruited last into the companies specified in Clauses 1, 2, 3, Article 1 of this Circular before April 21, 1998 (the date of implementation of Directive No. 20/1998/CT-TTg of the Prime Minister on accelerating restructuring and reform of state-owned enterprises), including:

- Workers who are still working, when the company is reorganized, the company has taken all measures to create jobs but cannot arrange work;

- Workers listed in the regular roster of the company (workers hired under employment contracts whose employment contracts have not been terminated according to labor laws at the time the decision to reorganize or convert the company was made) but without work (awaiting work), at the time of reorganization, the company still cannot arrange work.

b) Workers recruited last into the company specified in Clause 4, Article 1 of this Circular before April 26, 2002 (the effective date of Decree No. 41/2002/NĐ-CP dated April 11, 2002 of the Government).

c) Workers listed in the regular roster of the company converted from agricultural companies, forestry companies, state farms, state forestry farms, recruited last into the company before April 21, 1998 (except for workers of these companies undergoing dissolution, the recruitment date is determined according to point b, Clause 1 of this Article), at the time of reorganization, the company has taken all measures to create jobs but cannot arrange work and are not subject to the land allocation or forest allocation policy of the company.

2. Organizations and individuals related to the implementation of policies for surplus workers due to the reorganization of state-owned limited liability companies.

Article 3. Policy towards surplus workers currently performing indefinite-term labor contracts

The policy towards surplus workers currently performing indefinite-term labor contracts as stipulated in Article 3 of Decree No. 91/2010/NĐ-CP shall be implemented as follows:

1. At the time when the competent authority approves the labor restructuring plan or the Court decides to initiate bankruptcy proceedings, male workers aged 55 or older and female workers aged 50 or older with at least 20 years of social insurance contributions shall receive retirement pension according to Clause 1 of Article 50 of the Social Insurance Law (without deducting the percentage of early retirement pension).

2. Surplus workers who meet the retirement conditions under Clause 1 of this Article, aged from 55 to under 60 for males and from 50 to under 55 for females, shall additionally receive the following allowances and their calculation methods:

a) Three months' salary and wage allowances (if any) for each year (full 12 months, excluding fractional months) retired before the age specified in point a, Clause 1, Article 50 of the Social Insurance Law.

b) Five months' salary and wage allowances (if any) for the first 20 years of work with social insurance contributions.

For each year of work with social insurance contributions from the 21st year onwards, an additional half month's salary and wage allowances (if any) shall be provided. In cases where there are fractional years of work, they will be calculated based on the principle that over six months counts as one year, and six months or less does not count.

c) The period of social insurance contributions to calculate the allowances specified in point b, Clause 2 of this Article shall be determined based on the actual period of social insurance contributions, including the working period in the state sector considered as having social insurance contributions according to the law, up to the date of cessation of work recorded in the decision to cease work.

d) The salary and wage allowances used as the basis for calculating the allowances specified in points a and b, Clause 2 of this Article shall be calculated as the average of the last five years before retirement according to the salary and allowance coefficients (including position allowances, regional allowances, if any) actually assigned according to Clause 2, Article 6 and the general minimum wage level specified in Clause 3, Article 6 of Decree No. 91/2010/NĐ-CP.

Refer to Example 1, Appendix issued together with this Circular.

3. Surplus workers who have reached the retirement age as specified in point a, Clause 1, Article 50 of the Social Insurance Law (males aged 60, females aged 55), but still lack up to six months of social insurance contributions to meet the conditions for receiving a pension, shall be supported by the State to contribute once for the remaining months instead of the worker and employer, at the social insurance contribution rate applicable to the month before retirement into the retirement and death benefit fund to implement the retirement benefits as prescribed. The contribution ratio shall be implemented according to Clause 1, Article 42 and point c, Clause 1, Article 43 of Decree No. 152/2006/NĐ-CP dated December 22, 2006 of the Government guiding the implementation of some provisions of the Social Insurance Law (from January 1, 2007 to December 31, 2009 is 16%; from January 1, 2010 to December 31, 2011 is 18%; from January 1, 2012 to December 31, 2013 is 20%; from January 1, 2014 onwards is 22%).

Refer to Example 2, Appendix issued together with this Circular.

4. Surplus workers not falling within the scope of Clauses 1, 2, and 3 of this Article shall terminate their labor contracts and receive the following benefits and calculation methods:

a) An allowance of one month's salary and wage allowances (if any) for each year (full 12 months, fractional months accumulated in the next phase) of actual work in the state sector eligible for allowance, but not less than two months' salary and wage allowances (if any).

b) Additional support of one month's salary and wage allowances (if any) for each year (full 12 months) of actual work in the state sector eligible for additional support.

c) Six months' salary and wage allowances (if any) currently received at the time of ceasing work to seek employment. If there is a need for vocational training, free training for up to six months shall be provided. The vocational training institution shall be announced by the Department of Labor, Invalids, and Social Affairs.

d) The actual period of work in the state sector eligible for the allowance specified in point a, Clause 4 of this Article is the total actual working period (with attendance, listed in the payroll) in the state sector minus the periods during which the worker received unemployment assistance, termination benefits, or was on leave or demobilization benefits, or was contributing to unemployment insurance (if any).

The total actual period of work (with attendance, listed in the payroll) in the state sector is calculated from the date of recruitment into the company specified in Article 1 of this Circular until the date of ceasing work as recorded in the decision to cease work (including periods sent for study or assignment but still paid by the company; periods enjoying social insurance benefits: sickness, maternity, occupational accidents, occupational diseases; periods working under piece-rate or task-based remuneration systems paid by the company and contributing to social insurance as required). For workers transferred to the company specified in Article 1 of this Circular before January 1, 1995 (the effective date of the Labor Code) and worked until the date of company restructuring, the period of work in wholly state-owned companies, administrative agencies, public institutions, and armed forces receiving salaries from the state budget (including periods sent for study or assignment but still paid by the company, agency, or unit; periods enjoying social insurance benefits: sickness, maternity, occupational accidents, occupational diseases; periods working under piece-rate or task-based remuneration systems paid by the company and contributing to social insurance as required) prior to that date shall also be counted.

The actual working time in the public sector for determining subsidies shall be calculated according to the number of years (full 12 months) during each phase of adjusting salary coefficients and the general minimum wage level, with any remaining months from the previous phase being carried over to the next phase. If there are remaining months in the final phase, they shall be calculated on the principle that less than one month will not be counted; from one full month to less than seven months, it will be rounded up to six months; from seven full months to less than twelve months, it will be rounded up to one year.

d) The actual working time in the public sector for additional support as stipulated in point b, Clause 4 of this Article is the total actual working time (with attendance recorded in the payroll) in the public sector minus the time the employee received unemployment benefits, termination benefits, or enjoyed discharge or demobilization benefits as prescribed (if applicable).

The total actual working time in the public sector (with attendance recorded in the payroll) shall be determined according to the provisions of point d, Clause 4 of this Article.

e) The salary and salary allowances serving as the basis for calculating subsidies and additional support as stipulated in points a and b, Clause 4 of this Article shall be calculated based on each phase of adjusting salary coefficients and the general minimum wage level for each full year of actual work in the public sector (counting full 12 months, with any remaining months carried over to the next phase), specifically as follows:

- For actual working time in the public sector before October 1, 2004, which is counted for subsidies and additional support, the calculation shall be based on the average salary coefficient (including any retention differential coefficient, if applicable) and salary allowances (including position allowances and regional allowances, if applicable) for the six consecutive months immediately preceding September 30, 2004, pursuant to Decree No. 25/CP and Decree No. 26/CP dated May 23, 1993 of the Government.

- For actual working time in the public sector from October 1, 2004 onwards, which is counted for subsidies and additional support, the calculation shall be based on the average salary coefficient (including any retention differential coefficient, if applicable) and salary allowances (including position allowances and regional allowances, if applicable) for the six consecutive months immediately preceding the date of cessation of employment, pursuant to Decree No. 204/2004/NĐ-CP, Decree No. 205/2004/NĐ-CP dated December 14, 2004, Decree No. 86/2007/NĐ-CP dated May 28, 2007, Decree No. 141/2007/NĐ-CP dated September 5, 2007, and Decree No. 162/2006/NĐ-CP dated December 28, 2006 of the Government.

- The general minimum wage level for calculating subsidies and additional support shall be divided into phases according to the provisions of Clause 3, Article 6 of Decree No. 91/2010/NĐ-CP.

See Example 3 in the Appendix attached hereto.

g) In addition to the benefits prescribed in points a, b, and c, Clause 4 of this Article, employees shall also enjoy social insurance benefits as prescribed.

Article 4. Policy for surplus workers implementing fixed-term labor contracts from 12 to 36 months

The policy for surplus workers implementing fixed-term labor contracts from 12 to 36 months as stipulated in Article 4 of Decree No. 91/2010/NĐ-CP shall be implemented as follows:

1. A subsidy of one month's salary and salary allowances (if any) for each year (full 12 months, with any remaining months carried over to the next phase) of actual work in the public sector counted for subsidies.

The actual working time in the public sector counted for subsidies shall be determined according to the provisions of point d, Clause 4 of Article 3 of this Circular.

The salary and salary allowances serving as the basis for calculating subsidies shall be implemented according to the provisions of point e, Clause 4, Article 3 of this Circular.

2. A subsidy of seventy percent of the salary and salary allowances (if any) recorded in the contract (the salary and salary allowances recorded in the contract are monthly salaries, calculated based on the salary coefficient, position allowance coefficient, regional allowance coefficient, if applicable, and the general minimum wage level prescribed by the Government at the time of cessation of employment) for the remaining months not yet completed under the concluded labor contract, but not exceeding twelve months in total.

See Example 4 in the Appendix attached hereto.

Article 5. Returning Subsidies When Re-employed

1. Workers who have received the subsidy regime prescribed in Clause 4, Article 3 of Decree No. 91/2010/ND-CP, if re-employed at the company that previously terminated their employment (the company that has been restructured and converted to a new form of operation) shall return the original decision on retirement benefits for surplus labor due to restructuring of that company and the entire amount received according to Clause 4, Article 3 of Decree No. 91/2010/ND-CP.

Workers who return the aforementioned amount shall have the actual working time already resolved under the surplus labor regime prescribed in Decree No. 91/2010/ND-CP added to their actual working time at the company that has been restructured and converted to a new form of operation to calculate the termination allowance and unemployment allowance thereafter.

2. Surplus workers re-employed at other state-owned companies or agencies (including 100% state-owned companies, limited liability companies with two or more members 100% state-owned capital, agencies and units receiving salaries from the state budget) or given land or forest by the company shall submit a copy of the decision on retirement benefits for surplus labor due to restructuring of the company and the additional support amount prescribed in point b, Clause 4, Article 3 of Decree No. 91/2010/ND-CP to the relevant state-owned company or agency.

Workers who return the aforementioned subsidy shall not have the actual working time already resolved under the surplus labor regime prescribed in Decree No. 91/2010/ND-CP added to their actual working time at other state-owned companies, units, or agencies to calculate the termination allowance and unemployment allowance thereafter.

3. State-owned companies, agencies, and units that re-employ surplus workers or companies giving land or forest are responsible for collecting the amount that workers must pay upon re-employment and depositing it into the Enterprise Restructuring Support Fund at the State Capital Investment Corporation in accordance with the Prime Minister's regulations and the Ministry of Finance's guidelines.

Article 6. Sources of Funding for Supporting Surplus Labor

The funding for implementing the regime for surplus labor, payments to social insurance agencies, funding for vocational training institutions, and termination allowances and unemployment allowances as prescribed in the Labor Code shall be implemented in accordance with Articles 7 and 8 of Decree No. 91/2010/ND-CP, the Prime Minister's regulations, and the Ministry of Finance's guidelines.

Article 7. Responsibilities of Companies Implementing Restructuring

Companies implementing labor restructuring and resolving the regime for surplus labor as prescribed in Article 9 of Decree No. 91/2010/ND-CP shall proceed as follows:

1. Organize propaganda on the Party and State's policies on continuing to restructure, reform, develop, and improve the efficiency of state-owned enterprises and the policy for surplus labor due to restructuring of wholly state-owned limited liability companies to ensure that workers understand these policies.

2. Develop a plan to resolve surplus labor.

After being notified or having the restructuring and conversion plan approved by the competent authority (after the date when the competent authority issues the decision to approve the conversion to a joint-stock company, transfer, sell, dissolve, initiate bankruptcy proceedings, convert a state-owned enterprise into a limited liability company with two or more members, or convert into a public service unit), the company shall develop a plan to resolve surplus labor as follows:

a) Step 1. Compile a list of all employees of the company at the time of the restructuring and conversion decision (the date when the competent authority issues the decision to implement shareholding, transfer, sell, dissolve, initiate bankruptcy proceedings, convert into a limited liability company with two or more members, or convert into a public service unit) using Model 1 or Model 1a for companies converted from state-owned farms and forests issued together with this Circular, including:

- The number of employees currently working and receiving wages and social insurance contributions or not paying social insurance contributions (including seasonal or specific job employees with a term of less than one year).

- The number of employees who have retired but are still listed in the company's records, receiving wages or not, and paying social insurance contributions or not.

b) Step 2. Compile a list of employees needed for use using Model 2 and a list of employees not needed for use using Model 3 issued together with this Circular as follows:

- For companies implementing shareholding, the number of employees needed is based on the approved shareholding plan by the competent authority; the remaining employees are those not needed for use.

- For companies implementing transfer to employee collectives, the number of employees needed is the current number of employees minus those voluntarily terminating their labor contracts and recognized by the Company Trade Union Executive Committee or the Temporary Trade Union Executive Committee or the representative elected by the Workers' Congress as not needed for use.

- For companies implementing sales, the number of employees needed is specified in the sale agreement between both parties recorded in the sale contract; the remaining employees are those not needed for use.

- For companies implementing conversion to limited liability companies with two or more members or conversion into public service units, the number of employees needed is determined based on production and business plans, production technology, machinery and equipment, and labor standards aimed at effective development, approved by the competent authority; the remaining employees are those not needed for use.

For the number of workers not needed at the company undergoing corporatization, sale, conversion to a limited liability company with two or more shareholders, or transformation into a public institution, they are divided into two categories: workers hired before April 21, 1998 are surplus workers subject to treatment according to the provisions of Decree No. 91/2010/NĐ-CP; workers hired from April 21, 1998 onwards are subject to treatment according to the Labor Code.

- For companies undergoing dissolution or bankruptcy, all workers listed in the company's records who were hired before April 26, 2002 shall be treated according to the provisions of Decree No. 91/2010/NĐ-CP. Workers hired from April 26, 2002 onwards shall have their benefits resolved according to the Labor Code.

c) Step 3. The company collaborates with the Trade Union Executive Board to organize a Workers' Congress or a Workers' Representative Congress to provide opinions on the list of workers from Form No. 1 to Form No. 3 issued together with this Circular.

d) Step 4. Based on the opinions of the Workers' Congress or the Workers' Representative Congress, the company finalizes the list of workers for surplus labor resolution.

The time point for finalizing the list is determined as follows:

- For companies undergoing corporatization, the time point for finalizing the list of workers is the time when the competent authority announces the enterprise value.

- For companies being transferred to a group of workers, the time point for finalizing the list of workers is the time when the competent authority issues the decision to transfer the company to the group of workers.

- For companies being sold where the buyer assumes obligations towards workers, the time point for finalizing the list of workers is the date recorded in the company purchase and sale contract.

- For companies being sold where the buyer does not assume obligations towards workers, the time point for finalizing the list of workers is the time when the competent authority's decision approving the business sale plan becomes effective.

- For companies converting to a limited liability company with two or more shareholders or transforming into a public institution, the time point for finalizing the list of workers is the time when the competent authority issues the decision to convert the company to a limited liability company with two or more shareholders or transform it into a public institution.

- For companies undergoing dissolution, the time point for finalizing the list of workers is the time when the competent authority decides to dissolve the company.

- For companies undergoing bankruptcy (if the owner representative has taken all measures but cannot restore the ability to operate and has committed in writing not to apply further measures to restore the operation of the company), the time point for finalizing the list of workers is the time when the decision to initiate bankruptcy proceedings becomes effective.

đ) Step 5. Complete the surplus labor resolution plan to submit to the competent authority for approval. The submission file consists of six copies, each including:

- A request for approval of the surplus labor resolution plan according to Form No. 4 issued together with this Circular.

- A labor reorganization plan according to Form No. 5 or Form 5a (for companies converted from agricultural or forestry farms) issued together with this Circular.

- A list of workers classified from Form No. 1 to Form No. 3 issued together with this Circular.

For companies undergoing dissolution or bankruptcy, there is no need to approve the company restructuring plan but only the surplus labor resolution plan according to Form No. 1 and Form No. 3 issued together with this Circular.

The competent authority to approve the surplus labor resolution plan is the authority deciding the establishment, reorganization, merger, consolidation, conversion, and diversification of ownership and management of the company according to current regulations or the authority delegated by the Prime Minister (for companies established by the Prime Minister). For political organizations and social-political organizations, the head of the organization or the authorized person is the authority to approve the surplus labor resolution plan.

3. Resolving retirement benefits for surplus workers and budgeting funds for payment.

Within fifteen working days from the date the competent authority approves the surplus labor resolution plan, the company or unit must implement policies for surplus workers as follows:

a) Issue a decision for each surplus worker to retire according to the policy groups specified in Decree No. 91/2010/NĐ-CP, unified at a specific time according to Form No. 6 issued together with this Circular; The decision must be made in at least three copies: one copy sent to the worker, one copy retained by the company, and one copy sent to the social insurance agency.

b) Budget the funds for paying benefits to surplus workers according to the policy groups according to Form No. 7, Form No. 8, Form No. 9, Form No. 9a, and Form No. 10 issued together with this Circular.

c) Prepare a proposal for approval of the plan to use funds to support surplus workers according to the regulations of the Ministry of Finance.

d) For workers not needed and not covered under the provisions of Decree No. 91/2010/NĐ-CP (according to Form No. 11 issued together with this Circular), the company prepares a separate list to resolve benefits according to Articles 17, 31, and 42 of the Labor Code.

4. Resolving benefits for workers.

a) The company is responsible for:

- Fully and timely resolving all stipulated allowances for surplus workers based on the Retirement Decision.

- Providing free vocational training certificates to workers according to Form No. 12 issued together with this Circular.

- Completing all necessary files and procedures for social insurance benefits according to the law, along with a list of retired workers according to Form No. 7 and Form No. 8 issued together with this Circular, and transferring them to the social insurance agency.

- Clearly recording the reasons for retirement and resolved rights in the employment record and returning all complete files to the worker according to the law.

Within seven working days from the date of receiving the support funds for surplus workers from various sources as stipulated in Article 7 of Decree No. 91/2010/NĐ-CP, the company shall be responsible for directly paying, in one lump sum at the company, to the workers the allowances according to the approved plan.

In cases where workers cannot come directly to receive the allowances, they may authorize another person to receive these allowances in accordance with the Civil Code.

If a worker dies after the date of signing the decision to terminate employment (the effective date) without having signed to receive the amount due, the company shall transfer this amount to the administrator of the deceased's estate in accordance with the Civil Code.

b) When enjoying the policy, workers shall be responsible for:

- Signing to fully receive all amounts of allowances received.

- Signing to fully receive the resignation dossier.

- Settling any outstanding debts owed to the company (if any).

5. At the latest within thirty working days from the date of completing the settlement procedures for surplus workers, the company shall be responsible for reporting the implementation results to competent authorities. The report content includes: assessment of strengths and weaknesses, implementation results of payments (in accordance with the regulations of the Ministry of Finance), prepared in six copies and sent to: the authority that approved the surplus labor resolution plan, the Ministry of Finance, the Ministry of Labor, Invalids and Social Affairs, the Vietnam Social Security, the Department of Labor, Invalids and Social Affairs of the province or centrally-administered city where the main office of the company is located, and retained at the company.

Article 8. Responsibilities of Workers when Learning a Trade and Training Institutions

1. Surplus workers who wish to learn a trade and have been issued a free training voucher shall submit their training application to the training institution notified by the Department of Labor, Invalids and Social Affairs. The deadline for submitting the training application is within twelve months from the date of the decision to terminate employment.

2. Training institutions shall be responsible for accepting the training application of surplus workers wishing to learn a trade, which includes:

- Original free training voucher;

- Copy of the decision to terminate employment with benefits for surplus workers due to restructuring state-owned enterprises.

After accepting the application, the training institution shall confirm "agreement to accept training," sign and stamp on the back of the original termination decision, and return it to the worker.

The training institution shall be allocated a maximum of six (6) months of funding to provide free vocational training for surplus workers willing to learn a trade. The training fee, procedures, and methods of funding allocation and settlement shall be carried out in accordance with the guidelines of the Ministry of Finance.

Article 9. Responsibilities of the Department of Labor, Invalids and Social Affairs of Provinces and Centrally-Administered Cities

1. Assist the People's Committee of provinces and centrally-administered cities in urging and inspecting the implementation of policies for surplus workers in their respective areas.

2. Designate training institutions and compile a list of training institutions (name of the training institution, specific address, contact phone number, etc.) and announce it through mass media.

4. Coordinate with the Ministry of Labor, Invalids, and Social Affairs to organize training for cadres engaged in labor, invalids, and social affairs at the commune and district levels and those designated to implement this Circular.

The Vietnam Social Security shall be responsible for directing, guiding, and inspecting the implementation of social insurance policies for surplus workers in accordance with this Circular and current regulations by the Vietnam Social Security.

Article 11. Responsibilities of Ministries, ministerial-level agencies, agencies under the Government, People's Committees of provinces and centrally governed cities; political-social organizations; Boards of Directors of State-owned Economic Groups and State-owned Corporations established by Decision of the Prime Minister

1. Organize propaganda on the Party’s and State’s policies regarding the continued restructuring, reform, development, and enhancement of the efficiency of state-owned enterprises, particularly policies concerning surplus labor.

2. Approve plans for resolving surplus labor due to company restructuring (including calculation forms for subsidies for surplus labor as set out in Forms No. 7, No. 8, No. 9, No. 9a, and No. 10 issued together with this Circular) according to approved company restructuring and conversion plans; review plans for company financial support proposed by companies (in accordance with guidelines of the Ministry of Finance).

Within fifteen working days from the date of receipt of the company's plan for resolving surplus labor, the competent authority shall be responsible for approving and sending the decision along with six copies of the file to the company. In cases where approval cannot be made, the competent authority shall guide the company to amend and supplement the plan.

3. Direct specialized agencies to guide companies under their management that are implementing restructuring and conversion to develop plans, inspect the implementation of policies for surplus labor, and carry out in accordance with the provisions of this Circular.

4. Organize interim and final evaluations to assess the results of resolving surplus labor.

5. Report periodically every six months to the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance on the implementation of labor restructuring and resolution of surplus labor (according to Form No. 13 issued together with this Circular), propose solutions to address issues encountered during implementation (no later than July 15 each year for the six-month report and no later than January 15 of the following year for the annual report) to compile and report to the Government.

Article 12. Effective Date

1. This Circular takes effect 45 days from the date of signature.

2. Policies for surplus labor when restructuring a limited liability company wholly owned by the State as stipulated in this Circular shall take effect from the date the Decree No. 91/2010/ND-CP comes into force.

3. Positions of Board Members, Chairman, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, and Auditor at a limited liability company wholly owned by the State undergoing restructuring but not continuing to work at that enterprise or in the public sector shall be implemented in accordance with the reduction in staff policy prescribed in the Decree No. 132/2007/ND-CP dated August 8, 2007 of the Government on the reduction in staff policy. The funding for implementing the reduction in staff policy for Board Members, Chairman, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, and Auditor shall be allocated from the Enterprise Restructuring Support Fund pursuant to Decree No. 91/2010/ND-CP.

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