Circular No. 40/TC-HCSN guiding the financial management of employment service centers

CIRCULAR

GUIDELINES FOR FINANCIAL MANAGEMENT OF EMPLOYMENT SERVICE CENTERS PURSUANT TO DECREE NO. 72/CP OF OCTOBER 31, 1995 OF THE GOVERNMENT ON THE DETAILING AND GUIDANCE OF IMPLEMENTATION OF CERTAIN PROVISIONS OF THE LABOR CODE REGARDING EMPLOYMENT

Pursuant to Decree No. 72/CP dated October 31, 1995 of the Government on detailing and guiding the implementation of certain provisions of the Labor Code regarding employment; after reaching consensus with the Ministry of Labor, Invalids and Social Affairs, the Ministry of Finance hereby issues guidelines for financial management of Employment Service Centers as follows:

I. SCOPE:

The scope of application of this Circular includes Employment Service Centers established in accordance with Article 11 and Article 15 of Decree No. 72/CP dated October 31, 1995 of the Government and Circular No. 08/LDTBXH-TT dated March 10, 1997 of the Ministry of Labor, Invalids and Social Affairs.

II. CONTENTS OF FINANCIAL MANAGEMENT:

1. Employment Service Centers are public service units with revenue under the social activity sector, established by the State or political-social organizations and occupational associations. Employment Service Centers are legal entities with seals, and are allowed to open accounts at the National Treasury and banks for transactions.

Employment Service Centers manage finances and assets according to the mechanism of revenue-generating units. Employment Service Centers maintain accounting records pursuant to Decision No. 999/TC/QD/CĐKT dated November 2, 1996 of the Ministry of Finance and implement分级任务，已经翻译到第9条。接下来是第10-20条的内容：

2. SOURCES OF FINANCIAL RESOURCES:

2.1 STATE BUDGET SUPPORT:

- Support from local budgets, ministries, departments, political-social organizations, and occupational associations for constructing physical facilities and purchasing equipment (including workshops, offices, architectural structures).

- Support from the national fund for job creation according to the annual allocation plan of the Joint Ministry of Labor, Invalids and Social Affairs - Finance - Planning and Investment.

- The state budget supports operating costs based on approved staffing quotas.

2.2 ASSISTANCE FROM ORGANIZATIONS AND INDIVIDUALS IN AND OUTSIDE THE COUNTRY.

2.3 REVENUES FROM THE OPERATIONS OF THE CENTER, INCLUDING:

a. TUITION FEES AND SERVICE FEES:

- Tuition fees: Employment Service Centers may collect tuition fees as stipulated in contracts with students or units sending students for training in accordance with Article 12 of Decree No. 90/CP dated December 15, 1995 of the Government detailing and guiding the implementation of certain provisions of the Labor Code concerning vocational training.

- Service fees: Employment service fees include charges for consultation, job placement, labor recruitment, and information about the labor market.

For service fees related to recruiting workers for foreign-invested enterprises established in Vietnam, export processing zones, industrial parks, foreign agencies, organizations, or international organizations in Vietnam, the following applies:

Service fees paid for recruitment or referral shall be charged only once by the employer at a rate agreed upon by both parties but not exceeding:

+ 5% of the first month's salary specified in the labor contract for each successful referral.

+ 8% of the first month's salary specified in the labor contract for each successful recruitment through agency.

(the first month's salary must not be lower than the minimum wage set by the State for each region).

Tuition fees for central and provincial Employment Service Centers are determined by the People's Committees of provinces and centrally-administered cities within the framework of tuition fee rates prescribed by the Ministry of Finance; employment service fees of Employment Service Centers are implemented in accordance with current regulations of the State.

b. REVENUES FROM CONTRACTS PLACED BY THE STATE, UNITS, AND INDIVIDUALS.

c. REVENUES FROM PRACTICE, INTERNSHIP, PRODUCTION, AND SERVICES.

2.4 OTHER LEGAL REVENUES:

The above revenues are retained by Employment Service Centers to cover expenses for activities approved by authorized authorities.

3. EXPENSES OF THE CENTER:

- Operating expenses of the center in accordance with current State regulations.

- Expenses for purchasing raw materials, fuel, power, repairing fixed assets, serving vocational training, production, and employment services, depreciation of fixed assets serving production and employment services.

- Expenses for building, maintaining, and developing technical infrastructure of the center.

- Expenses for fulfilling obligations to the State Budget (taxes and other payments as prescribed by current State regulations).

- Other expenses (if any).

All expenses are carried out in accordance with current State standards and budgets approved by authorized authorities.

4. DISTRIBUTION OF DIFFERENCES BETWEEN REVENUE AND EXPENSES:

After deducting reasonable and legitimate expenses, taxes required by law, the remaining income from the center's vocational training, employment service, production, and service activities will be distributed as follows:

- 35% to supplement the operational funds of the unit through the State Budget according to corresponding levels.

- 65% to establish reward and welfare funds, the proportion allocated to each fund is decided by the head and the chairman of the trade union. The maximum limit for contributions to the two reward and welfare funds is three months' basic salary, the remainder is used to supplement the operational funds of the unit.

5. RESPONSIBILITIES FOR FINANCIAL MANAGEMENT:

- The Department of Labor, Invalids, and Social Affairs is responsible for managing the finances of subordinate Employment Service Centers. Annually, the Department of Labor, Invalids, and Social Affairs guides Employment Service Centers to develop plans, approve and allocate revenue and expenditure plans for centers in accordance with current State regulations; it collaborates with the Department of Finance and Price Control to audit and review the final accounts of subordinate Employment Service Centers.

- Ministries, central agencies, political and social organizations, and occupational associations shall be responsible for managing the finances of employment service centers established by ministries, central agencies, political and social organizations, and occupational associations, guiding the preparation of plans, approving and allocating revenue and expenditure distribution plans according to state regulations, and taking the lead and coordinating with the Ministry of Finance and the Ministry of Labor, Invalids and Social Affairs to examine and approve annual settlement reports of subordinate employment service centers.

- For employment service centers established by ministries, political and social organizations, and occupational associations and delegated directly to lower-level management, financial management shall be conducted under the current decentralization regime.

- The Ministry of Finance shall take the lead and coordinate with the Ministry of Labor, Invalids and Social Affairs to monitor the use of funds and audit settlement reports of sources of capital allocated from the National Employment Fund of employment service centers.

III/ IMPLEMENTATION:

1/ This Circular shall take effect fifteen days from the date of signature. Previous provisions contrary to this Circular are hereby abolished.

2/ Any difficulties encountered during implementation should be reported to the Ministry of Finance for study and resolution.

MINISTRY OF FINANCE

(Signed)

Tao Huu Phung