Decree No. 39/2003/ND-CP provides detailed regulations and guidance on implementing certain provisions of the Labor Code concerning employment.

DECREE

Regulations detailing and guiding the implementation of certain provisions of

Labour Code on Employment

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THE GOVERNMENT

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

Based on the Labor Code dated June 23, 1994; the Law Amending and Supplementing Certain Provisions of the Labor Code dated April 2, 2002;

At the proposal of the Minister of Labor, Invalids and Social Affairs,

DECREE:

Chapter 1:

CHAPTER EMPLOYMENT PROGRAMME

Article 1. Targets for job creation and employment support policies.

1. The target for new job creation as stipulated in Article 14 of the Labour Code is defined as the number of new workers needed to be recruited for regular work at enterprises, organizations, units, and individuals employing labour under labour contracts across all economic sectors due to new establishment or expansion in scale and activities, and reorganization of labour.

2. Building and implementing targets for new job creation:

a) In programs, projects, and plans for socio-economic development, it is essential to include targets for new job creation.

b) Annually, enterprises, organizations, units, and individuals using labour must report the results of implementing new job creation targets to relevant Ministries, sectors, and localities.

c) Annually, Ministries, sectors, and localities have the responsibility to compile and report new job creation targets to the Ministry of Labour, Invalids and Social Affairs and the Ministry of Planning and Investment.

d) The Ministry of Labour, Invalids and Social Affairs shall coordinate with the Ministry of Planning and Investment to guide, inspect, and report to the Government on the results of implementing new job creation targets annually and every five years.

3. Employment support policies:

a) The Ministry of Finance shall take the lead, coordinate with the Ministry of Labour, Invalids and Social Affairs and related Ministries and sectors to submit to the Government for issuance or issue within its authority financial support policies, tax exemptions and reductions, and other incentive measures to encourage enterprises, organizations, units, and individuals across all economic sectors to create jobs for many workers.

b) The State Bank of Vietnam shall take the lead, coordinate with the Ministry of Labour, Invalids and Social Affairs to study and submit to the Government for issuance or issue within its authority loan policies to enable workers to work abroad for a limited period, self-create jobs, and attract more workers.

c) The Ministry of Science and Technology shall take the lead, coordinate with the Ministry of Labour, Invalids and Social Affairs to study and submit to the Government for issuance or issue within its authority policies to encourage the development of new technologies and techniques that attract more workers.

d) The Committee for Ethnic Minorities shall take the lead, coordinate with the Ministry of Labour, Invalids and Social Affairs and related Ministries and sectors to study and submit to the Government for issuance or issue within its authority preferential policies for resolving employment issues to attract and utilize ethnic minority workers.

đ) The Ministry of Agriculture and Rural Development shall take the lead, coordinate with the Ministry of Labour, Invalids and Social Affairs and related Ministries and sectors to research and issue policies to encourage job creation in rural areas.

e) The Ministry of Labour, Invalids and Social Affairs shall be responsible for researching and submitting to the Government for issuance or issue within its authority:

Policies to support employment resolution for female workers and workers with disabilities;

Policies for vocational training and retraining of workers.

g) The Ministry of Education and Training shall take the lead, coordinate with the Ministry of Labour, Invalids and Social Affairs and related Ministries and sectors to study and submit to the Government for issuance or issue within its authority:

Policies to encourage workers to pursue education and improve their qualifications to meet the demands of production and new technology;

Policies to resolve employment for university, college, and vocational high school graduates.

h) The Ministry of National Defence and the Ministry of Public Security shall take the lead, coordinate with the Ministry of Labour, Invalids and Social Affairs and related Ministries and sectors to study and build policies to resolve employment for military personnel and public security soldiers after completing their service obligations.

Article 2. Chapter on National Employment Program:

1. The National Employment Program, as stipulated in Clause 1, Article 15 of the Labor Code, includes: objectives, targets, contents of activities, timeframes, solutions, financial sources, implementation organization, and program management.

2. The Ministry of Labor - Invalids and Social Affairs shall take the lead and coordinate with the Ministry of Planning and Investment and the Ministry of Finance to submit the National Employment Program to the Government for approval and to submit to the Prime Minister for issuance of mechanisms to manage and direct the operations of the National Employment Fund.

3. The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance and the Ministry of Labor - Invalids and Social Affairs to develop annual and five-year financial plans for the National Employment Program.

Article 3. Formation and utilization of the National Employment Fund:

1. The National Employment Fund is formed from the following sources:

a) State budget.

b) Support from organizations and individuals both domestically and internationally.

c) Other sources of support.

2. The National Employment Fund is utilized for the following purposes:

a) To provide loans for small projects to create employment for certain groups.

b) To lend to enterprises to prevent job losses and to hire unemployed persons.

c) To support the consolidation and development of employment service organizations and labor market development activities.

Article 4. Local Employment Resolution Programs:

1. The local employment resolution programs, as stipulated in Clause 2, Article 15 of the Labor Code, include: objectives, targets, contents of activities, timeframes, solutions, financial sources, implementation organization, and program management.

2. Each year, the provincial People's Committee shall build the local Employment Program and Fund and submit them to the same-level People's Council for decision; organize the implementation of such decisions and report the results to the Ministry of Labor - Invalids and Social Affairs and the Ministry of Planning and Investment.

Article 5. Formation and utilization of the local employment fund:

1. The local employment fund is formed from the following sources:

a) Local budget decided by the provincial People's Council.

b) Support from organizations and individuals both domestically and internationally.

c) Other sources of support.

2. The local employment fund is used according to the objectives of the local employment resolution program.

Article 6. The Ministry of Finance shall take the lead and coordinate with the Ministry of Labor - Invalids and Social Affairs and the Ministry of Planning and Investment to establish and issue regulations on financial management of the National Employment Fund and the local employment fund.

Chapter 2:

EMPLOYMENT RECRUITMENT

Article 7. Recruitment of Vietnamese workers as stipulated in Clause 2, Article 16 and Clause 1, Article 132 of the Labor Code is regulated as follows:

1. Employers have the right to directly or through employment service organizations to recruit Vietnamese workers based on their requirements.

2. Workers have the right to directly contact to find jobs or register with employment service organizations to seek employment.

Article 8. Recruitment procedures:

1. At least seven days before accepting applications for recruitment, employers must announce on mass media and post at their headquarters about the recruitment needs. Content includes: occupation, job, professional qualifications, number needed, duration of the labor contract, salary, working conditions, and other necessary requirements if applicable.

2. Application forms for recruitment include:

A labor recruitment application form as prescribed by the Ministry of Labor - Invalids and Social Affairs.

A copy of the labor book (no need for notarization). In cases where a labor book has not been issued, a resume as prescribed by the Ministry of Labor - Invalids and Social Affairs must be provided.

Copies of certificates and diplomas as required for the position applied for (no need for notarization).

A health certificate from a competent health authority.

Other documents as required by the enterprise due to the nature of the work.

3. When receiving applications for recruitment, employers must record in a tracking logbook and issue a receipt to the worker indicating the recruitment period. If the worker is not selected or does not attend the recruitment, the employer must return the application to the worker and retrieve the receipt.

4. Employers are responsible for paying all recruitment costs (excluding the application for recruitment) and can account for these costs in production costs or circulation fees.

5. Employers recruiting workers through employment service organizations must pay the job introduction fee to the employment service organization as prescribed by law.

6. Workers seeking employment through employment service organizations must also submit an application to the employment service organization as stipulated in Clause 2 of this Article. If they obtain employment, they must pay the job introduction fee to the employment service organization as prescribed by law. In cases where workers seek employment through employment centers as stipulated in Clause 1, Article 15 of this Decree, they are exempted from job introduction fees. The State supports employment centers in registering job-seeking for workers.

Article 9. Issuance of labor books for workers as stipulated in Article 183 of the Labor Code is regulated as follows:

1. Workers employed under labor contracts in all enterprises, organizations, units, and individuals are entitled to receive a labor book.

2. Individuals aged 15 years and above who are capable of working and have entered into a labor contract are entitled to receive a labor book.

3. Individuals receiving a labor book are responsible for paying the printing and distribution costs of the labor book.

The Ministry of Labor - Invalids and Social Affairs shall prescribe the format, issuance, use, and management of labor books.

Article 10. Employers, Ministries, sectors, and localities are responsible for reporting periodically on recruitment and use of workers as prescribed by the Ministry of Labor - Invalids and Social Affairs.

Chapter 3:

UNEMPLOYMENT BENEFITS

Article 11. The following cases are considered changes in structure or technology as stipulated in Clause 1, Article 17 of the Labor Code:

1. Modifying part or all of advanced machinery, equipment, and production processes with higher labor productivity.

2. Changing products or product structures leading to less labor usage.

3. Changing organizational structure: merging or dissolving certain parts of the unit.

If the changes above result in workers losing their jobs, the employer shall be responsible for retraining the workers for new jobs. If new employment cannot be provided and the workers must be laid off, the employer must pay severance compensation according to Clause 1, Article 17 of the Labor Code and Articles 12 and 13 of this Decree.

Article 12. The amount of severance compensation as stipulated in Clause 1, Article 17 of the Labor Code is defined as follows:

1. Severance compensation is calculated based on the salary level specified in Decree No. 114/2002/NĐ-CP dated December 31, 2002, of the Government detailing and guiding the implementation of some provisions of the Labor Code regarding wages.

2. The period for calculating severance compensation is the total actual working time for the employer until the worker loses their job. In cases where the worker had previous working time in the state sector without receiving termination benefits or unemployment benefits, that period can only be counted towards receiving termination benefits under Article 42 of the Labor Code. This termination benefit is paid from the enterprise's unemployment benefit reserve fund together with the unemployment benefit.

Specifically, for workers in enterprises implementing restructuring plans and conversion through transfer, sale, lease, business operation, and shareholding, the regulations concerning labor conditions set forth by the State for these situations shall apply.

3. The working period required to receive unemployment benefits is at least one year (12 months), if there is a fractional month, it is defined as follows:

a) Less than one month does not count toward receiving unemployment benefits.

b) From one to less than six months is counted as six months of work to receive unemployment benefits equal to half a month's salary.

c) Six months or more is counted as one year of work to receive unemployment benefits equal to one month's salary.

4. Unemployment benefits and termination benefits are paid directly once to the worker at the workplace or at the most convenient location for the worker, and no later than seven days from the date the worker loses their job.

Article 13. The unemployment benefit reserve fund as stipulated in Clause 3, Article 17 of the Labor Code is defined as follows:

1. Enterprises must establish an unemployment benefit reserve fund to promptly provide assistance to workers in the enterprise who lose their jobs.

2. The contribution rate to the unemployment benefit reserve fund ranges from 1% to 3% of the wage fund serving as the basis for social insurance contributions of the enterprise and is accounted for in cost or circulation fees.

3. The Ministry of Finance, in coordination with the Ministry of Labor, Invalids, and Social Affairs, shall regulate the establishment, management, and use of the unemployment benefit reserve fund of enterprises.

Chapter 4:

ORGANIZATIONS INTRODUCING JOBS

Article 14. Organizations introducing jobs as stipulated in Clause 1, Article 18 of the Labor Code include job introduction centers and businesses specializing in job introduction.

Article 15. Activities of organizations introducing jobs:

1. Job introduction centers established by state agencies or political-social organizations are self-financing public service units operating under Decree No. 10/2002/NĐ-CP dated January 16, 2002, of the Government, within the social activity domain, assigned staffing quotas by the state and political-social organizations, supported by state budget investment for equipment, facilities, and finance, and exempted or reduced from taxes according to the law.

2. Businesses specializing in job introduction activities must meet the conditions prescribed by the Prime Minister in the Regulation on the organization and operation of job introduction and obtain a license for job introduction activities from the provincial or centrally-administered city People's Committee.

3. The Ministry of Labor, Invalids, and Social Affairs shall submit to the Prime Minister for issuance of the Regulation on the organization and operation of job introduction.

Chapter 5:

IMPLEMENTING PROVISIONS

Article 16. This Decree shall take effect fifteen days after its publication in the Official Gazette.

This Decree replaces Decree No. 72/CP dated October 31, 1995, of the Government detailing and guiding the implementation of some provisions of the Labor Code concerning employment.

Article 17. The Ministry of Labor, Invalids, and Social Affairs, the Ministry of Finance, the Ministry of Planning and Investment, and other relevant ministries and sectors within their respective functions, tasks, and authorities are responsible for guiding the implementation of this Decree.

Article 18. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities are responsible for implementing this Decree./.