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

Guidelines for Implementing Decision No. 111-HĐBT dated April 12, 1991 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 through discussions with the Government's Organization and Cadre Management Board, the General Confederation of Labor of Vietnam, and the Joint Ministry of Labor, War Invalids and Social Affairs and Finance, the following guidelines are provided:

I - SCOPE AND OBJECTS OF POLICY IMPLEMENTATION:

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

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

- Mass organizations established pursuant 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 policies for workers set forth in this Circular shall be applied, but they must finance themselves and not receive funding from the labor reorganization fund:

- Mass organizations operating on a self-financing basis without state budget funding.

- Production and service organizations established by administrative and service agencies pursuant to Decision No. 268-CT dated July 30, 1990 of the Chairman of the Council of Ministers (except for cases where workers 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 are not within the scope of this Circular.

II - CLASSIFICATION AND SPECIFIC POLICY RESOLUTIONS FOR WORKERS AFTER REORGANIZATION:

Based on the general plan for organizational restructuring as 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 Management Board, and the assigned establishment quota, units proceed to reorganize and classify labor into four groups:

- Group 1: Includes workers and staff 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 their jobs and completely transferring out of the state establishment.

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

Policies for workers in each group are as follows:

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

Based on job titles and complete professional standards (if available) 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 conduct evaluations and selections, arranging cadres into positions suitable to their specific levels and capabilities.

For some cadres and staff lacking certain professional standards but possessing good health, a sense of responsibility in work, and the ability to improve, if there is a need for their use, they can still be arranged into 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 subsidy, regional subsidy (if applicable); price subsidy currently enjoyed will continue to be paid by the unit sending them to study.

If the training period exceeds one year, from the second year onwards, they will enjoy living expenses for long-term students based on their academic results from the training funds provided by the state budget for educational institutions. The duration of study is calculated per dispatch period, not cumulatively.

Upon completion of studies, they will be assigned work and receive salaries and benefits corresponding to that 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 needs aims at continuing to utilize 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 twelve months' salary, including basic wage (rank or position), salary supplement, 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 wages according to their new job; if the new wage is lower than the current wage, the new unit will retain the old wage for eighteen months. After eighteen months of receiving wages 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), those who are currently in the state's payroll and now switch to private or semi-public systems without receiving state budget salaries, remain within the state's payroll. The working period 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's 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 by workers):

- 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, disabled veterans ranked, primary 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.

- Particularly, heroes, long-term model workers, and those meritorious to the revolution, due to health and qualification limitations, agencies and units should strive to arrange suitable jobs. If young, they can be sent for training and education to change careers.

- For cases under point a above, if the unit does not need them in its organizational structure, or if the worker cannot meet job requirements but has not yet been processed for resignation, the agency or unit should establish separate lists and wage funds for each period, not included in the general staffing quota, to gradually find solutions. Depending on job requirements, the agency or unit may assign part-time work (working one to two weeks per month...) or temporarily allow them to stay home to engage in family economic activities.

b) Resignation policy:

- For each year of continuous work (excluding coefficient), one month's basic wage (rank or position wage), salary supplement, seniority allowance, and regional allowance (if applicable), and electricity or oil lighting price subsidy currently enjoyed will be paid at the time of the resignation decision. If the work 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 counted as three years to enjoy severance pay. For short-term contract workers under one year, the unit will resolve to terminate the contract.

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

- If a person resigning is under 45 years old and wishes to learn a new skill to find new employment, they will be granted additional vocational training funding for six months (equivalent to the price of 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.

- Resignees will retain their current household registration and residence; provincial, city, and centrally-administered municipal people's committees 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 production according to current policies.

- Those who receive one-time severance pay according to Decision No. 111 must record it in their personnel files upon resignation.

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 work period for retirement: men 30 years, women 25 years (including coefficients); but if their age does not reach the specified limit (men 60, women 55), and 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 permanent working group of the Central Sub-committee on Organizational Staff Arrangement 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 of the Government's Organization and Cadre Department shall serve as the head of the group. The permanent working group shall be 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 (hereinafter referred to as localities), a permanent working group shall also be established with representatives from the Local Administration Organization Department, the Department of Labor, Invalids and Social Affairs, the Department of Finance, and the Federation of Labor; the representative of the Local Administration Organization Department shall serve as the head of the group. The permanent working group at the locality level shall be 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 staff arrangement and classification (according to Model No. 1); determine the number of staff 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.

Documents related to staff arrangement accompanied by Models No. 1, 2, and 3 of each unit; if managed by a locality, they must be submitted to the locality's permanent working group for inspection and then forwarded 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 approval.

The results of the review by localities and ministries/sectors shall be compiled according to Models No. 1, 4, and 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 permanent working group for consideration as the basis for decision-making and allocation of funds.

3. Based on received documents, the central permanent working group shall conduct inspections, re-inspections (if necessary), and review the arrangements of each locality and ministry/sector. The Government's Organization and Cadre Department shall issue decisions after the proposals have been approved.

4. For now, in agencies and units that have correctly identified the objects requiring arrangement and policy resolution, immediate procedures as guided above may be carried out to request the central permanent working group to consider and decide immediately without waiting for general proposal approval.

IV - ALLOCATION AND MANAGEMENT OF FUNDS

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

1. Disbursement methods:

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

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

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

2. Ministries, sectors, and localities must strictly manage the allocated funds and use them for the purpose of staff arrangement; absolutely no arbitrary use, misuse, or inefficient use is permitted.

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 in its own 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 paid directly to workers. Upon receipt of 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 finalizing the settlement upon approval, 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 plan 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 or sector (if the unit is centrally managed). The basis for settlement is the actual number of workers who have had their policies resolved and removed from the organizational staff. 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 resolution until the end of the year.

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

V - IMPLEMENTATION

1. The task of organizational restructuring and reduction of staff strength in 1991, which was approved by the Eighth National Assembly Session Eight, is very heavy. Localities and ministries/sectors need to urgently implement it. Based on the progress of the approval of the staff arrangement proposals 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 continuing to work within the organizational staff (including those not resolved in this round mentioned in point 1, item II); the second part includes transferred workers and those resolved to leave their positions, if not resolved, the state budget will still ensure salaries until the end of the year. From January 1, 1992, if units fail to complete policy resolutions as approved, the state budget will only guarantee the salary fund for those continuing to work within the approved organizational staff. Units that do not proceed with staff arrangement will only receive 80% of the salary fund for existing staff. Arbitrary salary increases to remove cadres from the organizational staff are strictly prohibited.

During the arrangement process, new cadre recruitment shall be temporarily suspended. In exceptional cases where necessary, staffing quotas must be followed and candidates must go through the examination and probationary period before being officially appointed.

2. To effectively implement the policy on reorganizing staffing in administrative and public service agencies, to use funds efficiently, and to properly address policies for workers; 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 the implementation process. Local financial agencies and labor, social affairs departments have the responsibility to coordinate with organizational agencies to advise the Chairman of the People's Committee to strictly carry out 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 issues.

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

5. This Circular takes effect from the date of signature. Any difficulties encountered during implementation should be reported to the Joint Ministry for study and resolution.