Joint Circular No. 4/TT-LB guiding the implementation of Decision No. 111-HĐBT dated April 12, 1991 of the Council of Ministers on certain policies regarding the reorganization of staffing.

JOINT CIRCULAR

LABOUR - VETERANS AND SOCIAL AFFAIRS - FINANCE

Guidelines for Implementing Decision 111/HĐBT of the Council of Ministers on Certain Policies in Organizational Staffing

Implementing Decision No. 111/HĐBT dated April 12, 1991 of the Council of Ministers on certain policies in organizational staffing; After reaching consensus with the Government's Organization and Cadre Board, the General Confederation of Labor of Vietnam, and the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance, the following guidelines are issued:

I - SCOPE AND OBJECTS OF POLICY IMPLEMENTATION:

The objects implementing these policies include workers and civil servants (in the establishment or under long-term contracts of one year or more) in the following agencies and units:

- Administrative and service agencies established according to decisions of competent authorities.

- Mass organizations and people's associations established according to decisions of the State.

- Economic accounting units or those operating on a revenue-expenditure basis.

For the following agencies and units when organizing staffing, the policy for employees as stipulated in this Circular shall be applied, but they must cover their own expenses and will not receive funding from the labor reorganization fund:

- Mass organizations and people's associations operating on a self-financing principle without state budget funding.

- Production and service organizations established by administrative and service agencies according to Decision No. 268-CT dated July 30, 1990 of the Chairman of the Council of Ministers (except cases where employees are currently in the administrative and service establishment and temporarily transferred to production and services).

Units and economic organizations that have already implemented labor reorganization according to Decision No. 176-HĐBT dated October 9, 1989 do not fall within the scope of this Circular.

II - CLASSIFICATION AND SPECIFIC POLICY RESOLUTION FOR EMPLOYEES AFTER REORGANIZATION:

AFTER REORGANIZATION:

Based on the general plan for organizational restructuring guided by Circular No. 209-TCCP dated April 20, 1991; Circular No. 203-TCCP dated April 17, 1991; and Circular No. 241-TCCP dated May 9, 1991 of the Government's Organization and Cadre Board, and the assigned staff quota, the unit proceeds to reorganize and classify labor into four groups:

- Group 1: Includes workers and civil servants continuing to work in the administrative and service establishment.

- Group 2: Those transferring from administrative and service agencies to other places with demand (still within the State establishment).

- Group 3: Those leaving work and completely transferring out of the State establishment.

- Group 4: Those resolved to retire (at age or before age as prescribed).

Policy for employees in each group is as follows:

1. For those continuing to work in the administrative and service establishment.

Based on job titles and complete professional standards (if applicable) or common standards at Decision No. 284-LĐ-TBXH/QĐ dated July 29, 1989 of the Ministry of Labor, War Invalids and Social Affairs promulgating temporary common standards for job title systems, agencies and units proceed to assess and select cadres to appropriate positions matching their specific levels and capabilities.

For some cadres and civil servants lacking a few professional standards, but in good health, responsible in work, capable of advancing, and needed by the unit, they can still be placed in the organizational structure while being sent for training or professional development according to the requirements of the assigned tasks.

Training time of up to one year retains the original salary (basic or position, subsistence allowance, seniority allowance, regional allowance (if applicable); price subsidy currently enjoyed by the unit sending them to study.

If the training period exceeds one year, from the second year onwards, they will enjoy living allowances for long-term students based on academic results from the training budget funded by the state budget for training institutions. The training period is calculated per dispatch, not cumulatively.

Upon completion of studies, they will receive the salary and benefits corresponding to the assigned work.

2. For those transferring from administrative and service agencies to other places with demand.

Article transferring labor from administrative and public service agencies to other places with demand aims to continue utilizing the specialized professions that have been trained, addressing the situation where there is surplus in some places and shortage in others, leading to wastage of officials and staff with specialized technical skills but not being utilized in their respective fields.

- If transferred to agencies or units in mountainous or island areas under state-approved projects, they will be granted a one-time allowance equivalent to 12 months' salary, including basic wage (rank or position), salary subsidy, seniority allowance, and regional allowance (if applicable); transportation costs for themselves and their families (if accompanying) will be covered from the labor reassignment fund; upon arrival at the new location, they will receive salary based on the new job; if the new salary is lower than the current salary, the new unit will retain the old salary for 18 months. After 18 months receiving salary based on the new job, those who have received the one-time allowance mentioned above shall not enjoy other benefits related to job transfer.

After three months from the decision on job transfer, if the transfer cannot be made, they will be allowed to resign and receive severance pay. At the same time, the one-time allowance mentioned above will be recovered.

- In public service units (healthcare, culture, arts, scientific research, education), personnel currently within the state payroll, now transferring to private or semi-public systems and not receiving state budget salaries, remain within the state payroll. Working time under the private or semi-public system still counts as continuous work experience for social insurance benefits based on continued social insurance contributions as stipulated (specific guidelines will be provided separately). When the Social Insurance Ordinance is issued, it will be implemented according to the new guidelines.

3. For those who resign and completely leave the state payroll:

- Civil servants and employees frequently violating labor discipline, internal regulations of the agency, and responsibility systems without reaching the level of compulsory resignation.

- Civil servants and employees whose health, professional qualifications, and expertise do not meet job requirements.

- Those who are redundant compared to the mission and permitted staffing standards but cannot be reassigned.

- Those voluntarily resigning to work in other economic sectors due to legitimate personal or family reasons, approved by the agency and trade union.

The following cases will temporarily not be resolved for resignation in 1991 (except for voluntary resignation):

- Those currently ill and undergoing treatment confirmed by a hospital.

- Pregnant women or those nursing children under 12 months old.

- Social policy beneficiaries (war invalids, veterans ranked, main relatives of martyrs) facing significant difficulties confirmed by the Trade Union Executive Committee.

- Both spouses are civil servants or employees, one of whom has already been processed for resignation during the same period, and their economic conditions are extremely difficult.

- Specifically, heroes, long-term model workers, and those meritorious to the revolution, due to health and qualification limitations, agencies and units should strive to find appropriate job arrangements. If young, they may be sent for training and education to change careers.

- For cases under point a above, if the unit does not need them in the organizational structure or if they do not meet job requirements but are temporarily not processed for resignation, the agency or unit will establish separate lists and salary funds for each period, not included in the general staffing quota to gradually resolve the issue. Depending on job requirements, the agency or unit may assign part-time work (working 1-2 weeks per month...) or temporarily allow them to stay home and engage in family economics.

b) Resignation policy:

- Each year of continuous work (excluding coefficient) entitles them to one month's basic salary (rank or position salary), salary subsidy, seniority allowance, regional allowance (if applicable), and electricity or oil lighting price subsidy currently enjoyed, at the time of the resignation decision. If the working period is over one year but less than three years (including long-term contract periods of one year or more and probationary periods as stipulated), they will be considered as having completed three years to receive severance pay. For short-term contract workers under one year, the unit will handle the termination of the contract independently.

- Those who resign and go to build new economic zones under approved projects (project approval authority can be the Council of Ministers, Ministries, sectors, State Committees assigned tasks, Provincial People's Committees) with project owner confirmation will, in addition to severance pay, receive six months' salary and allowances if applicable (calculated as when processing resignation), and will be provided with transportation costs for themselves and their families (if accompanying) according to current regulations.

- If those who resign are under 45 years old and wish to learn a new skill to find new employment, they will be granted additional vocational training funding for six months (equivalent to 20 kg of rice per month) at a rate of 40,000 VND per month initially.

Funding for implementing resignation benefits in the above cases will come from the labor reassignment fund.

- Those who resign will retain their current household registration and residence; provincial, city, and special zone people's committees directly under the central government are responsible for creating favorable conditions for workers to stabilize their lives when returning to their place of residence, such as registering household registration, allocating agricultural and forestry land according to current policies.

- Those who receive one-time severance pay under Decision No. 111 must record it in their resignation file.

4. Regarding retirement benefits:

Continue to implement Decision No. 227-HĐBT dated December 29, 1987, of the Council of Ministers: Those who have reached the required working period for retirement: men 30 years, women 25 years (including coefficients); but if their age does not meet the specified requirements (men 60, women 55), and if the agency or unit does not need them, they may be considered for early retirement, up to a maximum of five years earlier (men 55, women 50).

III. CONTENT OF IMPLEMENTATION STEPS

1. The standing committee of the Sub-committee on organizational restructuring at the central level shall include representatives from the following agencies: the Government's Organization and Cadre Department, the Ministry of Labor, Invalids and Social Affairs, the Ministry of Finance, and the General Confederation of Labor Vietnam; the representative from the Government's Organization and Cadre Department shall serve as the head of the standing committee. The standing committee is responsible for assisting the Sub-committee and the Council of Ministers in guiding, implementing, inspecting, and reviewing proposals from ministries, sectors, and localities.

At provincial and municipal levels, including special administrative regions under the central government (hereinafter referred to as localities), standing committees shall be established with representatives from the Local Administration Organization Department, the Department of Labor, Invalids and Social Affairs, the Department of Finance, and the Labor Union; the representative from the Local Administration Organization Department shall serve as the head of the standing committee. The standing committee at the locality level is responsible for assisting the People's Committee in implementing and reviewing proposals from units under their management.

2. Agencies and units shall develop proposals for workforce restructuring and classification (according to Model No. 1); determine the number of workers requiring policy resolution and financial needs (according to Models No. 2 and 3) with confirmation from the unit's head and the grassroots trade union.

Workforce restructuring files accompanied by Models No. 1-2-3 of each unit; if managed by a locality, they must be submitted to the standing committee of the locality for inspection and submission to the People's Committee for approval; if under ministries or sectors, they must be submitted to the heads of ministries or sectors for inspection and review.

The results of the reviews by localities and ministries/sectors shall be compiled according to Models No. 1-4-5, along with formal letters of request sent to the Government's Organization and Cadre Department, the Ministry of Finance, the Ministry of Labor, Invalids and Social Affairs, and the General Confederation of Labor Vietnam through the central standing committee for consideration as the basis for decision-making and allocation of funds.

3. Based on received files, the central standing committee shall conduct inspections, re-inspections (if necessary), and review the restructuring plans of each locality and ministry/sector. The Government's Organization and Cadre Department shall issue decisions after the plans have been approved.

4. For now, in agencies and units that have correctly identified the target groups for restructuring and policy resolution, immediate procedures as outlined above may be carried out to request the central standing committee to consider and make decisions promptly, without waiting for general plan approvals.

IV. ALLOCATION AND MANAGEMENT OF FUNDS.

Funds for organizational restructuring shall be allocated within the state budget (central budget) and set aside as a separate fund (organizational restructuring fund) managed by the Ministry of Finance.

1. Disbursement methods:

After receiving the Government's Organization and Cadre Department's approval of the restructuring plan for ministries/sectors and localities, the Ministry of Finance shall process the allocation of funds (from the organizational restructuring fund) to resolve policies for workers.

- For units under ministries/sectors at the central level, the Ministry of Finance shall allocate funds through the respective ministries/sectors.

- For units managed by localities, the Ministry of Finance shall allocate funds through the local finance departments in the form of delegated funds.

2. Ministries/sectors and localities must strictly manage the allocated funds and use them for the purpose of organizational restructuring; they must not be used arbitrarily, for unintended purposes, or inefficiently.

3. Accounting:

a) State budget funds allocated to units shall be recorded in the state budget ledger as follows:

- For units managed by localities according to Chapter 99, Type 13, Clause 2, Item 3, Section 89.

- For units managed centrally, each ministry shall record its units under its respective chapter, Type 13, Clause 2, Item 3, Section 89.

b) At the grassroots level:

- State budget funds allocated to administrative and public service units shall be directly paid to workers. Upon receipt of the allocated funds, the unit shall record as follows:

Debit: Account 51 - Treasury deposits.

(511 - operational funds deposited in treasury)

Credit: Account 84 - source of funds (84.1 State budget allocation).

- When withdrawing cash to pay workers, the unit shall record as follows:

Debit: Account 50 - Cash reserve.

Credit: Account 51 - Treasury deposits.

- When paying workers, the unit shall record as follows:

Debit: Account 38 - Expenditure for administrative and public service units.

Credit: Account 50 - Cash reserve.

- Upon finalization and approval of the settlement report, the unit shall record as follows:

Debit: Account 84 - Source of funds (84.1 - State budget allocation).

Credit: Account 38 - Expenditure for administrative and public service units.

4. Settlement:

After each payment period and at the end of the planning year, administrative and public service units shall prepare final settlement reports to submit to the local finance department (if the unit is managed by a locality); the main managing ministry/sector (if the unit is centrally managed). The basis for settlement is the actual number of workers who have had their policies resolved and transferred out of the agency's staffing. Settlement will be conducted simultaneously with the return of the corresponding salary fund to the state budget for workers whose policies have been resolved from the date of policy implementation until the end of the year.

The local finance department and the main managing ministry/sector shall compile the final settlement reports of the grassroots units and settle accounts with the Ministry of Finance according to current regulations. The Ministry of Finance shall compile reports to submit to the Council of Ministers and the Sub-committee on Organizational Restructuring for guidance and control.

V. IMPLEMENTATION

1. The task of organizational restructuring and reducing staff in 1991, which was approved by the Eighth National Assembly Session VIII, is very heavy. Localities and ministries/sectors need to implement it urgently. Based on the progress of the organizational restructuring plan approval by the Government's Organization and Cadre Department, classification must be completed by the third quarter, starting from October 1, 1991, the salary fund of administrative and public service units shall be divided into two parts: the first part includes those workers continuing to work within the unit's staffing (including those not resolved in this round mentioned in point a, item 1, section II); the second part includes the transferred workers and those resolved to leave their jobs, if not resolved, the state budget will still ensure salaries until the end of the year. From January 1, 1992, if the unit does not complete the policy resolution as approved in the plan, the state budget will only ensure the salary fund for the part continuing to work within the approved staffing. Units that do not proceed with restructuring will only receive 80% of the staffing salary fund present. Arbitrary salary increases to remove cadres from staffing are strictly prohibited.

During restructuring, new cadre recruitment shall be temporarily suspended. In exceptional cases where necessary, staffing quotas must be followed and candidates must pass examinations and probation before being officially appointed.

2. To implement well the policy on reorganizing staffing in administrative and public service agencies, using funds effectively, and addressing policies for employees properly; Ministries, sectors, and localities need to closely coordinate with the Steering Committee for Organizational and Staffing Reorganization of the Council of Ministers; promptly resolve difficulties and obstacles during implementation. Local financial agencies and labor, invalids, and social affairs agencies have the responsibility to coordinate with organizational agencies to advise the Chairman of the People's Committee to strictly implement this work.

3. The Ministry of Labor, Invalids, and Social Affairs, the Ministry of Finance, and the Government's Organization and Cadre Department shall cooperate with the Vietnam General Confederation of Labor to conduct inspection rounds at ministries, sectors, and localities to promptly address practical difficulties.

4. Labor agencies need to coordinate with trade unions at the same level to regularly understand the living conditions and employment status of those transferred out of staffing, report and reflect any difficulties and challenges to competent authorities for consideration and resolution.

5. This Circular takes effect from the date of signature. During implementation, any difficulties should be reported to the Joint Ministry for study and resolution.

Name of agency or unit Model No. 1.

(or Ministry, Sector - locality)

TABLE OF LABOR REORGANIZATION RESULTS

I. Total number of staff present before reorganization

II. Results of classification and reorganization:

1. Continue to retain in the staffing of the agency or unit; including:

- Number assigned to work

- Number sent for training

Breakdown: + Short-term + Long-term

- Number temporarily not resolved for termination of employment.

2. Transfer to other places with needs, including:

- Number transferred to mountainous and island agencies or units.

3. Termination of employment and transfer out of staffing. Including:

- Number going to new economic zones according to projects

4. Retirement (up to and including age limit).

III. Total number of staff approved by superiors and reviewed by the main management level.

 Head of the agency or unit