Decree No. 61/2015/ND-CP on employment support policies and the National Employment Fund

DECREE

Regulations on employment support policies and the National Employment Fund

________________________

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

Based on the Labor Code dated June 18, 2012;

Pursuant to the Labor Law dated November 16, 2013;

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

The Government issues a Decree to regulate employment support policies and the National Employment Fund.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree provides detailed implementation of certain provisions of the Labor Code and the Law on Employment regarding public employment policies, support for sending workers to work abroad under contracts, support for creating jobs for young people, and the National Employment Fund.

Article 2. Applicability

1. Workers as defined in Clause 1, Article 3 of the Law on Employment.

2. Employers as defined in Clause 2, Article 3 of the Labor Code.

3. Agencies, enterprises, organizations, and individuals related to the contents prescribed in Article 1 of this Decree.

Chapter II

PUBLIC EMPLOYMENT POLICY

Section 1

SELECTION AND ANNOUNCEMENT OF PROJECTS AND ACTIVITIES IMPLEMENTING EMPLOYMENT POLICIES

Article 3. Selection of projects and activities implementing employment policies

1. Projects and activities as specified in Clause 1, Article 18 of the Law on Employment selected to implement public employment policies include:

a) Projects and activities for protecting, managing, and utilizing land, water, and forest resources; disaster prevention and response to climate change;

b) Projects and activities for cultural preservation and development and tourism promotion;

c) Projects and activities for construction, renovation, and maintenance: Roads, schools, kindergartens, health clinics, markets, facilities serving cultural and sports activities; irrigation works, drainage systems, dike projects; power supply, clean water, and environmental sanitation facilities;

d) Other community service projects and activities.

2. The Minister, Head of a ministerial-level agency; the Chairman of the People's Committee of a province or centrally governed city (hereinafter referred to collectively as the provincial People's Committee); the Chairman of the People's Committee of a district, town, or city under a province (hereinafter referred to collectively as the district People's Committee); the Chairman of the People's Committee of a commune, ward, or town (hereinafter referred to collectively as the commune People's Committee) decides to implement public employment policies for projects and activities as stipulated in Clause 1 of this Article.

Article 4. Announcement of projects and activities implementing employment policies

1. Ministries, ministerial-level agencies, provincial People's Committees, and district People's Committees notify the commune People's Committee where the project or activity implementing the employment policy is located about the scope, content of work to be carried out; quality and progress requirements to be achieved, and labor needs for participating in the employment policy implementation.

2. The commune People's Committee publicly posts at their office, communal meeting places, and announces through local media the contents of the notification as specified in Clause 1 of this Article.

Section 2

PARTICIPATION IN PUBLIC EMPLOYMENT POLICIES

Article 5. Registration to participate in public employment policies

1. Workers who wish to participate in public employment policies register with the commune People's Committee where they reside legally according to the guidelines of the Ministry of Labor, Invalids, and Social Affairs.

2. The commune People's Committee compiles a list of workers wishing to participate in public employment policies; publicly posts it at their office, communal meeting places, and announces through local media.

Article 6. Selection of workers to participate in public employment policies

The commune People's Committee collaborates with contractors (if any), political and social organizations, and representatives of communities benefiting from projects and activities implementing public employment policies to select workers to participate in public employment policies from the list of registered participants in the following priority order:

1. Groups specified in Clause 2, Article 19 of the Law on Employment.

2. Workers from households primarily engaged in agricultural production.

3. Workers residing legally in the locality where the project or activity is implemented.

Article 7. Treatment for workers participating in public employment policies

1. Employers who use workers participating in public employment policies must enter into labor contracts with such workers and ensure the treatment for workers as prescribed by labor laws.

2. For projects and activities implementing public employment policies that involve community participation as stipulated by the bidding law, the Ministry of Labor, Invalids, and Social Affairs shall guide the treatment for workers.

Section 3

IMPLEMENTATION OF PUBLIC EMPLOYMENT POLICIES

Article 8. Responsibilities of Ministries, agencies at the ministerial level, and People's Committees at all levels

1. The Ministry of Labor, Invalids, and Social Affairs shall guide, inspect, and report to the Government on the results of implementing public employment policies.

2. Ministries and agencies at the ministerial level shall take the lead in guiding the organization and implementation of projects and activities implementing public employment policies; inspect and send the results of implementing public employment policies to the Ministry of Labor, Invalids, and Social Affairs.

3. People's Committees at all levels shall organize the implementation of projects and activities implementing public employment policies within their jurisdiction; inspect and report the results of implementing public employment policies according to the guidance of the Ministry of Labor, Invalids, and Social Affairs.

Article 9. Community supervision of the implementation of public employment policies

1. Community residents shall supervise the use of labor and the implementation of treatment for workers participating in public employment policies within their jurisdiction.

2. Political and social organizations shall participate in supervising the use of labor and the implementation of treatment for workers participating in public employment policies within their jurisdiction.

Chapter III

SUPPORT FOR WORKERS TO WORK ABROAD

Ở NƯỚC NGOÀI THEO HỢP ĐỒNG

Article 10. Support policy for workers going to work abroad under contracts

Workers from ethnic minority groups; workers from poor households, near-poor households, or households whose agricultural land has been reclaimed; and relatives of persons meritorious to the revolution who wish to go to work abroad under contracts shall be supported as follows:

1. Vocational training, language training, and necessary knowledge enhancement support includes:

a) Tuition fees for vocational training, language training, and necessary knowledge enhancement;

b) Meal expenses during actual training time;

c) Travel costs (one round trip) from place of residence to the training location if it is more than 15 kilometers away or 10 kilometers away for workers residing legally in areas with particularly difficult economic and social conditions.

Specifically, workers from poor districts will also be supported with accommodation expenses and essential personal items.

2. Support for passport, visa, health examination, and criminal record procedures before going to work abroad as prescribed by law.

3. Risk management support during working abroad as prescribed by law.

4. Training and skill improvement cost support when requested by the receiving country.

5. The Ministry of Labor, Invalids, and Social Affairs shall take the lead and coordinate with relevant agencies to guide the specific procedures, formalities, and support levels for each category.

Article 11. Loan support for workers going to work abroad under contracts

1. Workers from poor households, households whose agricultural land has been reclaimed, and workers from ethnic minority groups may borrow funds from the Social Policy Bank to go to work abroad under contracts as prescribed by law.

2. Workers from near-poor households and workers who are relatives of persons meritorious to the revolution may borrow funds from the National Employment Fund to go to work abroad under contracts as prescribed in Section 3 of Chapter V of this Decree.

Article 12. Support for Developing the Overseas Labor Market

1. Support for developing the overseas labor market shall be carried out through the following activities:

a) Researching and surveying the overseas labor market;

b) Promoting information about Vietnamese labor resources;

c) Promoting the development of the overseas labor market.

2. The Ministry of Labor, Invalids, and Social Affairs shall take the lead and coordinate with relevant agencies to guide the content and level of support for developing the overseas labor market.

Article 13. Implementation funds

The funding for supporting workers going abroad under contracts shall be allocated from the state budget. For the specific funding to support workers whose agricultural land has been reclaimed, it shall be implemented according to the provisions of the Land Law and guiding documents.

Chapter IV

SUPPORT FOR JOB CREATION FOR YOUTH

Section 1

VOCATIONAL TRAINING FOR YOUTH COMPLETING MILITARY SERVICE

POLICE SERVICE DUTY, VOLUNTEER SERVICE

Article 14. Recipients of Vocational Training Support

Youth who have completed their military service, police duty, or volunteer service tasks under economic and social development programs and projects shall be supported in vocational training when they meet the conditions stipulated in Article 15 of this Decree.

Article 15. Conditions for Vocational Training Support

The recipients specified in Article 14 of this Decree shall be supported in vocational training if they satisfy the following conditions:

1. They have a need for vocational training within twelve months from the date of completion of military service, police duty, or volunteer service tasks under economic and social development programs and projects;

2. They have not received vocational training support from other vocational training support policies using state budget funds since completing military service, police duty, or volunteer service tasks under economic and social development programs and projects.

Article 16. Content and Level of Vocational Training Support

1. Those specified in Article 14 of this Decree participating in vocational training at the intermediate and higher levels shall be supported as follows:

a) Exemption or reduction of tuition fees and support for educational expenses in accordance with the Education Law, the Vocational Education Law, and guiding documents;

b) Access to loans to participate in vocational training at the intermediate and higher levels in accordance with credit policies for students and trainees facing difficult circumstances.

2. Those specified in Article 14 of this Decree participating in vocational training at the basic level shall be provided with a vocational training card with a maximum value equal to twelve months' minimum wage at the time of training and valid for one year from the date of issuance.

3. The Ministry of Labor, Invalids, and Social Affairs, the Ministry of National Defense, and the Ministry of Public Security shall guide the implementation of vocational training support policies for the recipients specified in Article 14 of this Decree.

Article 17. Funding for Vocational Training Support

The funding for supporting vocational training for the recipients specified in Article 14 of this Decree shall be implemented in accordance with the laws on state budget.

Section 2

SUPPORT FOR YOUTH STARTING A BUSINESS OR ESTABLISHING A COMPANY

Article 18. Support for Youth Starting a Business

1. Recipients of Support:

a) Students of secondary schools;

b) Youth studying at higher education institutions and vocational training centers;

c) Youth who have graduated from higher education institutions and vocational training centers.

2. Content of support:

a) Career guidance;

b) Provision of job and career information;

c) Training and enhancing job search and work skills;

d) Participation in internship programs at enterprises and organizations;

đ) Preferential loans from the National Employment Fund in accordance with the law.

3. Based on the socio-economic situation at each period, the Ministry of Labor, Invalids, and Social Affairs shall take the lead and coordinate with relevant agencies to submit to the Prime Minister for decision-making on supporting youth starting a business.

Article 19. Support for young people starting businesses

1. Recipients of Support:

a) Young people who have a desire to start a business;

b) Young people who have already started a business.

2. Content of support:

a) Providing knowledge on laws, business management, and issues related to starting a business;

b) Training and enhancing knowledge on starting a business;

c) Offering preferential loans from the National Employment Fund in accordance with the provisions of the law.

3\. Based on the economic and social conditions at each period, the Ministry of Labor - Invalids and Social Affairs shall take the lead and coordinate with relevant agencies to submit to the Prime Minister for a decision on supporting young people to start businesses.

Chapter V

NATIONAL EMPLOYMENT FUND

Section 1

MANAGEMENT AND USE OF THE NATIONAL EMPLOYMENT FUND

Article 20. Use of the National Employment Fund

The National Employment Fund (hereinafter referred to as the Fund) shall be used for the following activities:

1\. Offering preferential loans to small and medium-sized enterprises, cooperatives, production groups, individual households, and workers to create jobs, maintain, and expand employment opportunities;

2\. Offering preferential loans to workers going abroad under contracts.

Article 21. Management of the National Employment Fund

1\. The Ministry of Labor - Invalids and Social Affairs shall perform state management functions over the Fund; coordinating with the Ministry of Finance and the Ministry of Planning and Investment to allocate capital sources and set targets for implementation for provincial People's Committees and central agencies of the Vietnam Women's Union, the Communist Youth Union of Ho Chi Minh, the Vietnam Farmers' Association, the General Confederation of Labor of Vietnam, the Vietnam Veterans' Association, the Vietnam Federation of Cooperatives, and the Vietnam Blind Association (hereinafter collectively referred to as implementing organizations).

2\. Provincial People's Committees and central agencies of implementing organizations shall be assigned tasks to manage and utilize funds from the Fund in accordance with this Decree.

3\. The Fund shall be managed and lent out by the Social Policy Bank in accordance with this Decree. The Social Policy Bank shall report on the results of implementation according to the guidance of the Ministry of Labor - Invalids and Social Affairs.

Section 2

PREFERENTIAL LOANS FOR SMALL AND MEDIUM-SIZED ENTERPRISES,

COOPERATIVES, PRODUCTION GROUPS, INDIVIDUAL HOUSEHOLDS

AND WORKERS

Article 22. Principles of loan disbursement

1\. Ensuring the correct target group for the purpose of supporting job creation, maintaining, and expanding employment opportunities.

2\. Preserving capital.

3\. Simplified procedures, transparency, and clarity.

Article 23. Borrowers

1\. Borrowers are defined in Clause 1, Article 12 of the Law on Employment.

2\. Small and medium-sized enterprises, cooperatives, production groups, and individual households (hereinafter collectively referred to as production and business establishments) that employ many disabled workers and ethnic minority workers as stipulated in Point a, Clause 2, Article 12 of the Law on Employment are defined as follows:

a\. Production and business establishments employing many disabled workers are those using 30% or more of their total workforce as disabled workers;

b\. Production and business establishments employing many ethnic minority workers are those using 30% or more of their total workforce as ethnic minority workers;

c\. Production and business establishments employing many disabled workers and ethnic minority workers are those using 30% or more of their total workforce as both disabled workers and ethnic minority workers.

Article 24. Loan Amount

1. For production and business establishments, the maximum loan amount for one project is VND 1 billion and not more than VND 50 million per worker who is provided with employment.

2. For workers, the maximum loan amount is VND 50 million.

Article 25. Loan Period

The loan period shall not exceed sixty months. The specific loan period shall be agreed upon between the Social Policy Bank and the borrower based on the available capital, production and business cycle, and the borrower's ability to repay.

Article 26. Interest Rate on Loans

1. For the subjects specified in Clause 1, Article 12 of the Labour Law, the interest rate on loans shall be equal to the interest rate on loans for poor households as prescribed by the Prime Minister for each period.

2. For the subjects specified in Clause 2, Article 12 of the Labour Law, the interest rate on loans shall be fifty percent of the interest rate stipulated in Clause 1 of this Article.

3. The overdue interest rate shall be one hundred thirty percent of the loan interest rate as stipulated in Clauses 1 and 2 of this Article.

Article 27. Conditions for Securing Loan Funds

For loans exceeding VND 50 million from the Fund, production and business establishments must provide collateral in accordance with the law.

Article 28. Preparation of Loan Application Documents

1. Workers and production and business establishments requiring loans from the Fund shall prepare loan application documents and submit them to the local branch of the Social Policy Bank or its transaction office (hereinafter referred to as the local Social Policy Bank) where the project is being implemented.

2. Loan application documents include:

a) For workers:

- A loan request form confirmed by the People's Committee of the commune regarding lawful residence;

- A copy of the document proving the priority subject as specified in Point b, Clause 2, Article 12 of the Labour Law (if applicable).

b) For production and business establishments, the loan application documents include:

- A loan project plan confirmed by the People's Committee of the commune where the project is being implemented;

- A copy of one of the following documents: Business Registration Certificate, Cooperative Registration Certificate, Partnership Contract, Business Household Registration Certificate;

- A copy of the document proving the priority subject as specified in Point a, Clause 2, Article 12 of the Labour Law (if applicable);

- Relevant documents concerning collateral (if applicable).

3. The Ministry of Labour, Invalids and Social Affairs shall guide the implementation of Clause 2 of this Article.

Article 29. Examination and Approval of Loan Application Documents

1. For projects funded by provincial People's Committees:

a) Within ten working days from the date of receipt of the loan application documents, the local Social Policy Bank shall organize an examination and submit it to the Chairman of the People's Committee of the district where the project is being implemented for approval;

b) Within five working days from the date of receipt of the submitted documents for approval, the Chairman of the People's Committee of the district where the project is being implemented shall examine and approve. If no decision is made to approve, a written response with the reasons shall be given to the local Social Policy Bank to inform the borrower.

2. For projects funded by organizations implementing management programs:

a) Within ten days from the date of receipt of the loan application documents, the local Social Policy Bank shall organize an examination and submit it to the head of the provincial agency of the organization implementing the program for examination and approval;

b) Within five working days from the date of receipt of the submitted documents for approval, the head of the provincial agency of the organization implementing the program shall examine and approve. If no decision is made to approve, a written response with the reasons shall be given to the local Social Policy Bank to inform the borrower.

Article 30. Recovery and Utilization of Loan Capital

1. The local Policy Bank shall cooperate with relevant agencies to recover both principal and interest when due. Borrowers may agree to repay the loan ahead of schedule. During the lending process, the Policy Bank, Department of Labor, Invalids and Social Affairs, District Labor, Invalids and Social Affairs Office, and implementing organizations shall inspect and supervise the use of loan capital. If the loan capital is found to be used for purposes other than those stipulated in the project or does not meet job creation targets during the loan period, they shall report to the authority that approved the loan application to issue a decision to recover the loan capital ahead of schedule.

2. The Policy Bank shall utilize recovered loan capital for lending purposes and minimize idle capital.

3. In cases where it is necessary to adjust loan capital sources among localities and implementing organizations, the Policy Bank shall report to the Ministry of Labor, Invalids and Social Affairs for consideration and decision. The Policy Bank shall be responsible for transferring loan capital according to the decision of the Ministry of Labor, Invalids and Social Affairs.

Article 31. Utilization of Loan Interest

1. Loan interest shall be utilized as follows:

a) Establishing a Reserve Fund;

b) Allocating management expenses for lending, recovery of loan capital, inspection, and supervision;

c) Supplementing the Reserve Fund.

2. Agencies cooperating with the Policy Bank in the process of appraising, disbursing, and recovering loan capital shall be entitled to fees paid from loan interest by the Policy Bank.

3. The Ministry of Finance shall provide guidance on the utilization of loan interest in accordance with this Article.

Article 32. Handling Risky Debts of Loan Capital

Handling risky debts of loan capital shall be carried out in accordance with the Government's regulations on mechanisms for handling risky debts at the Policy Bank.

Article 33. Establishment and Approval of Loan Capital Plans and Job Creation Targets

1. Each year, the People's Committee of the province and the central agency of the implementing organization shall prepare plans for loan capital and job creation targets and submit them to the Ministry of Labor, Invalids and Social Affairs for consolidation and submission to the Prime Minister for consideration and decision.

2. Each year, based on the approval of the Prime Minister, the Ministry of Labor, Invalids and Social Affairs shall notify the plan for loan capital and job creation targets to localities, implementing organizations, and the Policy Bank to develop implementation plans.

Article 34. Organization of Loan Capital Transfer

1. Based on the budget estimate for additional loan capital support for job creation, maintenance, and expansion, the Ministry of Finance shall handle the procedures to transfer capital to the Policy Bank. The Policy Bank shall transfer the capital to the local Policy Bank to implement the approved plan.

2. In cases where the Policy Bank mobilizes capital to implement loans for job creation support, maintenance, and expansion, it shall be compensated for the interest rate differential.

Section 3

GRANTING PREFERENTIAL LOANS TO WORKERS GOING ABROAD FOR EMPLOYMENT

Ở NƯỚC NGOÀI THEO HỢP ĐỒNG

Article 35. Principles of Granting Loans

1. Ensuring the correct borrower.

2\. Preserving capital.

3. Ensuring transparency and fairness.

Article 36. Maximum Loan Amount

The maximum loan amount is 100% of the costs incurred for working abroad under the contract signed between the worker and the service enterprise or organization sending workers abroad under contract.

Article 37. Conditions for Guaranteeing Loan Funds

For loan amounts exceeding 50 million VND, workers borrowing preferential funds to work abroad under contracts must provide collateral for the loan in accordance with the provisions of the law.

Article 38. Loan Period

The loan period for supporting workers to work abroad under contracts shall not exceed the working period abroad specified in the contract signed between the worker and the service enterprise or organization sending the worker to work abroad.

Article 39. Interest Rate on Loans

1. The preferential interest rate for workers going to work abroad under contracts shall be equal to the interest rate on loans for poor households during each period as prescribed by the Government.

2. The overdue interest rate shall be 130% of the loan interest rate stipulated in Clause 1 of this Article.

Article 40. Preparation of Loan Application Documents

1. Workers who wish to borrow preferential funds to work abroad under contracts shall prepare and submit loan application documents to the local Policy Bank at their place of residence.

2. Loan application documents include:

a) A loan request form in accordance with the guidelines of the Ministry of Labor, Invalids, and Social Affairs, confirmed by the People's Committee of the commune regarding legal residency;

b) A copy of documents proving that the worker falls within the category defined in Clause 2 of Article 11 of this Decree;

c) A copy of the contract signed between the worker and the service enterprise or organization sending the worker to work abroad;

d) A copy of the worker’s passport still valid;

đ) Relevant documents concerning collateral assets (if any).

Article 41. Examination and Approval of Loan Capital

Within ten working days from the date of receipt of the application documents for loans to support workers going to work abroad under contracts, the local Policy Bank shall organize examination and approval. If no approval decision is made, the local Policy Bank shall notify the worker in writing and specify the reasons.

Article 42. Repayment of Loan Capital

1. The Policy Bank shall recover both principal and interest of the loan when due; workers may agree on early repayment of the loan.

2. In cases where the service enterprise managing the overseas salary of workers sends them abroad agrees to transfer the workers' overseas salaries to repay the loan, the enterprise, the worker, and the Policy Bank shall negotiate such arrangements.

Article 43. Use of Loan Interest

1. Loan interest shall be utilized as follows:

a) Establishing a Reserve Fund;

b) To cover management expenses for lending and recovering loan capital;

c) To replenish the loan capital for the Fund.

2. The Ministry of Finance shall guide the use of loan interest in accordance with Clause 1 of this Article.

Article 44. Handling Risky Debts of Preferential Loans

Handling risky debts of preferential loans for workers going to work abroad under contracts shall be carried out in accordance with the Government's regulations on mechanisms for handling risky debts at the Policy Bank.

Article 45. Construction and Approval of Loan Capital Plan

1. Each year, the provincial People's Committee shall develop a plan for preferential loan capital for workers going to work abroad under contracts and submit it to the Ministry of Labor, Invalids, and Social Affairs for consolidation and submission to the Prime Minister for consideration and decision.

2. Each year, based on the Prime Minister's approval, the Ministry of Labor, Invalids, and Social Affairs shall notify the preferential loan capital plan for workers going to work abroad under contracts to localities and the Policy Bank to build implementation plans.

Article 46. Organization of transferring loan capital

1. Based on the budget estimate for state budget expenditures from additional concessional loan sources for workers going to work abroad under contracts, the Ministry of Finance shall process the procedures to transfer capital to the Social Policy Bank. The Social Policy Bank shall transfer the capital to local Social Policy Banks to implement the program.

2. In cases where the Social Policy Bank mobilizes capital to provide concessional loans to workers going to work abroad under contracts, it shall be compensated by the State for the interest rate differential.

Chapter VI

IMPLEMENTING PROVISIONS

Article 47. Effectiveness and responsibility for implementation

1. This Decree takes effect from September 1, 2015.

2. Decision No. 71/2005/QĐ-TTg dated April 5, 2005 of the Prime Minister on the management mechanism and operation of the National Employment Fund and Decision No. 15/2008/QĐ-TTg dated January 23, 2008 of the Prime Minister amending and supplementing certain provisions of Decision No. 71/2005/QĐ-TTg; regulations on support policies for demobilized soldiers to learn trades stipulated in Decision No. 121/2009/QĐ-TTg dated October 9, 2009 of the Prime Minister on the operational mechanisms of vocational training institutions under the Ministry of Defense and support policies for demobilized soldiers to learn trades; Clause 4 of Decree No. 03/2014/NĐ-CP dated January 16, 2014 of the Government detailing the implementation of certain provisions of the Labor Code regarding employment cease to be effective from the date this Decree takes effect.

3. Projects borrowing funds from the National Employment Fund that have been approved before the date this Decree takes effect shall continue to be implemented according to the approved projects.

4. Programs, projects, and plans supporting workers going to work abroad under contracts that have been approved before the date this Decree takes effect shall continue to be implemented according to the approved programs, projects, and plans.

5. Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairpersons of provincial People's Committees directly under the central government, and related agencies, enterprises, organizations, and individuals are responsible for implementing this Decree./.