Circular No. 65/2003/TT-BQP guiding the implementation of certain provisions of Government Decree No. 41/2002/NĐ-CP dated April 11, 2002 on policies for surplus labor due to restructuring state-owned enterprises within military enterprises.

CIRCULAR

Guidelines for Implementing Certain Provisions of Decree No. 41/2002/NĐ-CP dated April 11, 2002 of the Government on Policies for Surplus Labor Resulting from the Restructuring of State-Owned Enterprises for Military Enterprises

 

In accordance with Decree No. 41/2002/NĐ-CP dated April 11, 2002 of the Government on Policies for Surplus Labor Resulting from the Restructuring of State-Owned Enterprises, Circular No. 11/2002/TT-BLDTBXH dated June 12, 2002 of the Ministry of Labor, Invalids and Social Affairs guiding the implementation of certain provisions of Decree No. 41/2002/NĐ-CP, and Circular No. 11/2003/TT-BLDTBXH dated May 22, 2003 guiding amendments and supplements to Circular No. 11/2002/TT-BLDTBXH dated June 12, 2002, the Ministry of National Defense (MND) provides guidelines for implementation for military enterprises as follows:

I. SCOPE OF APPLICATION

1. State-owned enterprises within the military (referred to as military enterprises), including:

1.1. Military enterprises restructuring according to Article 17 of the Labor Code, comprising:

- Enterprises retaining 100% state capital.

Joint-stock companies converted from military enterprises with restructuring plans confirmed by the MND within 12 months from the date of issuance of the business registration certificate under the Enterprise Law.

1.2. Military enterprises restructuring through conversion methods, including:

- Military enterprises converting into joint-stock companies.

- Military enterprises merging or consolidating.

1.3. Military enterprises being dissolved or declared bankrupt.

2. Enterprises (including dependent units of independent accounting enterprises converted into joint-stock companies) implementing restructuring measures according to Points 1.1 and 1.2 of Clause 1 above must be approved or confirmed by the Ministry of National Defense on their restructuring plans during the period from April 26, 2002 to December 31, 2005.

3. Enterprises being dissolved or declared bankrupt during the period from April 26, 2002 to December 31, 2005 must have dissolution decisions or bankruptcy declarations issued by competent authorities.

4. For joint-stock companies converted from military enterprises with an operating time not exceeding 12 months (from the date of issuance of the business registration certificate under the Enterprise Law) with restructuring plans decided by the Board of Directors and confirmed by the Ministry of National Defense.

II. APPLICABLE OBJECTS

Workers with surplus labor enjoying policies stipulated in Decree No. 41/2002/NĐ-CP, specifically as follows:

1. For military enterprises being dissolved or declared bankrupt, including:

1.1. Workers hired under labor contracts (LC) recruited to work before April 26, 2002 (the effective date of Decree No. 41/2002/NĐ-CP) under indefinite-term LCs or fixed-term LCs from one to three years.

1.2. Workers hired under LCs or those specified in Point 1.2, Clause 1 of Section II of Circular No. 91/2002/TT-BQP dated July 8, 2002 of the MND on guiding the implementation of labor contract systems in military enterprises, but at the time of restructuring, they had not yet concluded LCs in writing, only apply to those recruited to work before August 30, 1990 (the effective date of the Labor Contract Ordinance).

2. For military enterprises not subject to dissolution or bankruptcy but restructured according to Decision No. 58/2002/QĐ-TTg dated April 26, 2002 of the Prime Minister on issuing criteria and classification lists for restructuring state-owned enterprises and state-owned corporations and Decision No. 80/2003/QĐ-TTg dated April 29, 2003 of the Prime Minister approving the overall restructuring plan for state-owned enterprises directly under the MND for the period 2003-2005 or restructuring according to Article 17 of the Labor Code approved by the MND on labor restructuring plans, including:

2.1. Workers currently employed, when restructuring, the enterprise has taken all measures to create jobs but still cannot arrange employment. This applies to those recruited to work at the enterprise under indefinite-term LCs or fixed-term LCs from one to three years before April 21, 1998 (the date of Directive No. 20/1998/CT-TTg of the Prime Minister on accelerating the restructuring and renewal of state-owned enterprises).

For those who were supposed to sign LCs but had not signed them in writing by the time of restructuring, this applies only to those recruited before August 30, 1990.

2.2. Workers listed regularly in the enterprise's roster but without jobs, at the time of restructuring, the enterprise still cannot arrange employment. This applies to those recruited to work under indefinite-term LCs or fixed-term LCs from one to three years and at the time of restructuring, the enterprise has not terminated the labor contracts according to the law.

3. The recruitment date of workers as stipulated in Clause 1, Article 2 of Decree No. 41/2002/NĐ-CP is defined as follows:

- For workers continuously working in state agencies and state-owned enterprises, the recruitment date is calculated from the start date of working in the public sector.

- In cases where workers have periods of non-working in state agencies and state-owned enterprises, the recruitment date is calculated as the last recruitment date for continuous work in state agencies and state-owned enterprises.

Example: Ms. Nguyen Thi A has the following work history:

Stage 1: Recruited to work (for the first time) in a state-owned enterprise on June 20, 1976 and worked continuously until June 20, 1992.

Stage 2: Recruited to work in a 100% foreign-owned enterprise on July 1, 1992 and worked continuously until September 15, 1995.

Stage 3: Recruited to work in a state-owned enterprise on October 25, 1995 and worked continuously until the enterprise implements restructuring and issues a decision to terminate employment.

Therefore, the recruitment date of Ms. Nguyen Thi A into the public sector is calculated as her last recruitment date on October 25, 1995.

III. POLICIES APPLIED TO SURPLUS WORKERS

(belonging to the objects specified in Section II of this Circular)

1. Policy for surplus workers currently under indefinite-term labor contracts:

1.1. Workers aged 55 to under 60 for males, and aged 50 to under 55 for females, who have contributed to social insurance for at least 20 years, are entitled to retire without having their pension reduced due to early retirement according to the Social Insurance Regulations, and in addition, they shall also be entitled to the following allowances:

1.1.1. An allowance of three months' salary grade, position, and wage supplement (if applicable) for each year (full 12 months) of early retirement. For cases with less than a full year, the allowance is calculated as follows:

+ If the period is six months or less, one month's salary grade, position, and wage supplement (if applicable) will be provided.

+ If more than six months but less than twelve months, two months' salary grade, position, and wage supplements (if applicable) is granted.

1.1.2. An allowance of five months' salary grade, position, and wage supplement (if applicable) for the first 20 years of work with social insurance contributions.

1.1.3. From the 21st year onwards, for each year of work with social insurance contributions, half a month's salary grade, position, and wage supplement (if applicable) will be provided. For cases with less than a full year, if the period exceeds six months, it is counted as one year, otherwise, it is not counted.

The calculation period for additional allowances as stipulated in Clauses 1.1.2 and 1.1.3 of this Section is based on the time of social insurance contributions (including time working in the state sector considered as social insurance contributions) according to the law, up to the date of the decision to cease employment.

The salary and wage supplements for calculating allowances are the salary grade, position, and wage supplements prescribed in Decree No. 26/CP dated May 23, 1998 of the Government on temporary regulations on new salary systems in enterprises, Decree No. 25/CP dated May 23, 1993 of the Government on temporary regulations on new salary systems for civil servants, administrative and public service officials, and armed forces personnel, and the minimum wage set by the State at the time of retirement. In cases where workers have not yet been reclassified in terms of salary, they shall be reclassified according to the provisions of the aforementioned decrees.

The wage supplements included (if applicable) are: Position supplements, regional supplements.

For joint-stock companies operating for 12 months, the salary and wage supplements (if applicable) are calculated at the time the business registration certificate is issued according to the Enterprise Law.

The minimum wage used as the basis for calculating allowances for the subjects specified in Subpoint 1.1 Point 1 of this Section is the minimum wage prescribed by the Government (currently 290,000 VND/month).

Example 1: Mr. Nguyen Van A, an automobile repair worker, at the time of retirement was 56 years and 4 months old; had 25 years and 8 months of social insurance contributions; his current salary grade coefficient is 2.84 (Grade 6, Group II, Thang Luong A.1 mechanical, electrical, electronics, IT); Regional supplement 0.5. Mr. A is entitled to the following benefits:

+ Proportion of pension received:

- The first 15 years calculated at 45%.

- From the 16th to the 26th year (25 years and 8 months rounded to 26 years according to Decree No. 01/2003/NĐ-CP dated January 9, 2003).

11 years x 2% = 22%

-> Proportion of pension is: 45% + 22% = 67%.

+ Retirement benefit due to early retirement:

- Monthly salary grade and wage supplement: 290,000 VND x (2.84 + 0.5) = 968,600 VND

- Number of months of allowance received: Early retirement 3 years and 8 months: 3 years x 3 months/year + 2 months = 11 months

With 20 years of work and social insurance contributions = 5 months

From the 21st year onwards with social insurance contributions (5 years and 8 months rounded to 6 years): 6 years x 0.5 months = 3 months of salary

Total: = 19 months

-> Total allowance received: 968,600 VND/month x 19 months = 18,403,400 VND

1.2. Workers who have reached the retirement age as prescribed by the Labor Code but are still short of up to one year (12 months) of social insurance contributions, shall be supported by the State to pay social insurance contributions once for the remaining months at a rate of 15% of the monthly salary at the time of reaching the retirement age and shall be granted retirement benefits according to the current regulations, including the following cases:

1.2.1. Males aged 60 and females aged 55 with 14 to under 15 years of social insurance contributions.

Example 2: Mr. Nguyen Van B, a product delivery worker, at the time of retirement was 60 years old; had 14 years of social insurance contributions; his current salary coefficient is 2.73 (Grade 6, Group I, Thang Luong A.15 food processing); minimum wage 290,000 VND/month. Mr. B is supported by the State to pay social insurance contributions once for 12 months at a rate of 15% of the monthly salary used as the basis for monthly social insurance contributions and to process retirement benefits according to current regulations.

+ Monthly wage used as the basis for social insurance contributions:

290,000 VND x 2.73 = 791,700 VND

+ One-time social insurance contribution (supported by the State):

(791,700 VND x 15%) x 12 months = 1,425,060 VND

+ Proportion of pension received is 45% (with 15 years of social insurance contributions)

1.2.2. Males aged 55 and females aged 50, with 15 years of work in heavy, hazardous, or toxic jobs or 15 years of work in areas with regional supplements of 0.7 or more, or 10 years of actual work in battlefields B, C before April 30, 1975, or battlefield K before August 31, 1989, with 19 to under 20 years of social insurance contributions.

Example 3: Mr. Nguyen Van C, a kitchen worker, at the time of retirement was 55 years old; had 19 years and 6 months of social insurance contributions; his current salary coefficient is 2.07 (Grade 5, Level II, Thang Luong A.20 catering); minimum wage 290,000 VND/month. Mr. C is supported by the State to pay social insurance contributions once for 6 months at a rate of 15% of the monthly salary used as the basis for monthly social insurance contributions and to process retirement benefits according to current regulations.

- Monthly wage used as the basis for social insurance contributions:

290,000 VND x 2.07 = 600,300 VND

- One-time social insurance contribution:

(600,300 x 15%) x 6 months = 540,270 VND

- Proportion of pension calculated is:

+ The first 15 years calculated at 45%.

+ Additional from the 16th to the 20th year (each year 2%) is 10%

- Total proportion of pension is: 45% + 10% = 55%

1.2.3. Males aged 50 and females aged 45, with 19 to under 20 years of social insurance contributions, and whose ability to work has been reduced by 61% or more.

1.2.4. Workers who have worked for at least 15 years in particularly arduous or particularly hazardous jobs and have contributed to social insurance for 19 years up to less than 20 years (regardless of age) and have been assessed as having a reduced work capacity of 61% or more.

1.3. Redundant workers not falling within the categories specified in points 1.1 and 1.2, Clause 1, Section III above shall terminate their labor contracts and enjoy benefits as follows:

1.3.1. Unemployment allowance is calculated based on actual time worked in the public sector, with each year (full 12 months) entitling the worker to one month's salary corresponding to rank, position, and wage supplements (if applicable), but not less than two months' salary and wage supplements.

1.3.2. An additional allowance of one month's salary corresponding to rank, position, and wage supplements (if applicable) for each year (full 12 months) of actual work in the public sector, plus a lump-sum allowance of five million dong.

Actual working time in the public sector includes:

The actual time workers spent working at state-owned enterprises; administrative agencies of the state; public service units; and military forces receiving salaries from the state budget (hereinafter referred to collectively as the public sector).

Any period during which workers received salaries from state-owned enterprises, the state budget, or social insurance benefits (including training periods, sick leave, maternity leave, etc.).

Time working under piece-rate or volume-based contracts where the enterprise paid wages and contributed to social insurance for the workers in accordance with the law.

For joint-stock companies operating for 12 months, actual working time in the public sector is counted up to the date of issuance of the business registration certificate according to the Enterprise Law.

The duration of unemployment allowance is the total actual working time in the public sector accumulated from the first day of employment until the decision to retire is made. From the total actual working time in the public sector, the time during which the worker has already received unemployment allowance, severance pay, discharge benefits, or demobilization benefits must be deducted.

If the actual working time in the public sector includes fractional months, it is defined as follows:

+ Less than one month, not counted.

+ From one month to less than seven months, counted as six months of actual work.

+ From seven months to less than twelve months, counted as one year of actual work.

1.3.3. A one-time allowance for job search is six months' salary corresponding to rank, position, and wage supplements (if applicable). If there is a desire to learn a trade, free vocational training for up to six months at a vocational training center designated by the Department of Labor, Invalids, and Social Affairs may be provided.

In addition to the benefits stipulated in 1.3.1, 1.3.2, and 1.3.3 of Section 1.3 of this Article, workers also enjoy retirement waiting benefits, retention of social insurance contribution periods, and one-time social insurance allowance according to current regulations.

Wages and wage supplements are applied according to the provisions of point 1.1.3, Clause 1.1, Section III of this Circular.

For joint-stock companies operating for 12 months, wages and wage supplements (if applicable) are calculated at the time the enterprise receives its business registration certificate according to the Enterprise Law.

The minimum wage level serving as the basis for calculating benefits for the subjects mentioned in 1.3.1, 1.3.2, Clause 1.3, Sections 1 and 2 of Section III of this Circular is implemented according to Clause 2, Article 6 of Decree No. 03/2003/NĐ-CP dated January 15, 2003 of the Government on adjusting wages, social allowances, and reforming the management mechanism of wages, specifically as follows:

- Unemployment allowance for the period of work before January 1, 2003, is calculated at a minimum wage rate of 210,000 dong per month.

Unemployment allowance for the period of work from January 1, 2003 onwards is calculated at a minimum wage rate of 290,000 dong per month; job search allowance, 70% of the monthly wage for the remaining months of the unfulfilled labor contract, is calculated at a minimum wage rate of 290,000 dong per month.

Fractional months are calculated according to the provisions of point 1.3.2, Clause 1.3, Section III of this Circular.

Example 4: Mr. Nguyen Van D, a mechanical worker at enterprise Z17, at the time of retirement was 44 years old; he had 20 years and 7 months of actual work in the public sector (of which 1 year and 2 months were from January 1, 2003); his salary coefficient was 2.33 (rank 5, group II wage scale, grade A1 for mechanics, electricity, electronics, and information technology); the minimum wage was 290,000 dong per month. Mr. D enjoys the following benefits:

Monthly salary and wage supplements before January 1, 2003:

210,000 dong x 2.33 = 489,300 dong

Monthly salary and wage supplements from January 1, 2003:

290,000 dong x 2.33 = 675,700 dong

- Unemployment allowance calculated based on actual work time before January 1, 2003, is 19 years and 5 months (converted to 19 years and 6 months):

489,300 dong/month x 19.5 months = 9,541,350 dong

- Unemployment allowance calculated based on actual work time from January 1, 2003, is 1 year and 2 months (converted to 1 year and 6 months):

675,700 dong/month x 1.5 months = 1,013,550 dong

-> Total unemployment allowance is:

9,541,350 dong + 1,013,550 dong = 10,554,900 dong

- Additional allowance calculated based on actual work time before January 1, 2003, is 19 years and 5 months (converted to 19 years and 6 months):

489,300 dong/month x 19.5 months = 9,541,350 dong

- Additional allowance calculated based on actual work time from January 1, 2003, is 1 year and 2 months (converted to 1 year and 6 months):

675,700 dong/month x 1.5 months = 1,013,550 dong

-> Total additional allowance calculated based on actual work time is:

9,541,350 dong + 1,013,550 dong = 10,554,900 dong

- Fixed one-time allowance = 5,000,000 dong

- Job search allowance: 675,700 dong/month x 6 months = 4,054,200 dong

-> Total amount received is:

10,554,900 dong + 10,554,900 dong + 5,000,000 dong + 4,054,200 dong = 30,164,000 dong.

Example 5: Ms. Nguyen Thi E, construction worker, belonging to Ha Thanh enterprise, at the time of retirement was 44 years old; had 17 years and 7 months of actual working time in the state sector (of which from January 1, 2003 was 2 years and 3 months); had a salary coefficient of 2.84 (level 6 group II, month A.6 basic construction wage). Previously, Ms. E received unemployment allowance for 5 years at enterprise K. Ms. E is entitled to the following benefits:

Monthly salary and wage supplements before January 1, 2003:

210,000 VND x 2.84 = 596,400 VND

Monthly salary and wage supplements from January 1, 2003:

290,000 VND x 2.84 = 823,600 VND

The actual working time eligible for unemployment allowance is:

17 years 7 months - 5 years = 12 years 7 months

- Unemployment allowance based on actual working time before January 1, 2003 is: 596,400 VND/month x 10.5 months = 6,262,200 VND

- Unemployment allowance based on actual working time from January 1, 2003 is:

823,600 VND x 2.5 months = 2,059,000 VND

-> Total unemployment allowance is: 6,262,200 VND + 2,059,000 VND = 8,321,200 VND

- Additional allowance based on actual working time before January 1, 2003 is:

596,400 VND/month x 10.5 months = 6,262,200 VND

- Additional allowance based on actual working time from January 1, 2003 is:

823,600 VND x 2.5 months = 2,059,000 VND

-> Total additional allowance is: 6,262,200 VND + 2,059,000 VND = 8,321,200 VND

- Fixed one-time allowance = 5,000,000 dong

- Job-seeking allowance:

675,700 VND/month x 6 months = 4,054,200 VND

-> Total amount received is:

8,321,200 VND + 8,321,200 VND + 5,000,000 VND + 4,941,600 VND = 26,584,000 VND

1.3.4. Workers who are still short of up to 5 years of age to retire according to the Labor Code (i.e., men aged 55 to under 60, women aged 50 to under 55) and have contributed to social insurance for at least 15 years without receiving a one-time social insurance benefit, as stipulated in point d, Clause 3, Article 3 of Decree No. 41/2002/NĐ-CP, are now regulated as follows:

+ Entitled to the policy as specified in 1.3.1, 1.3.2, Point 1.3, Clause 1, Section III of this Circular.

+ Continue to contribute to social insurance monthly at a rate of 15% of the previous month's salary until reaching the retirement age (men aged 60, women aged 55), then receive monthly pension according to current regulations.

The basis for calculating social insurance contributions is the salary used for social insurance contributions before the date of retirement, including: Position salary, position allowance, regional allowance, salary retention coefficient (if applicable) calculated based on the minimum wage set by the State at the time of social insurance payment.

+ The period of continued social insurance contributions starts from the date of the decision to retire.

+ Procedures for continuing social insurance contributions are carried out according to the guidelines of the military social insurance agency.

+ During the period of self-contributing to social insurance, if the worker dies, their dependents shall receive funeral benefits according to current regulations.

Example 6: Mr. Nguyen Van F, construction worker, at the time of retirement was 57 years old; had 17 years and 6 months of actual working time in the state sector (of which from January 1, 2003 was 6 months); had a salary coefficient of 3.05 (level 6 group III, month A.6 basic construction wage); regional allowance 0.4. Mr. F belongs to the category of workers who continue to contribute to social insurance until reaching the retirement age (60 years old) and is entitled to the following benefits:

Monthly salary and wage supplements before January 1, 2003:

210,000 VND x (3.05 + 0.4) = 724,500 VND

Monthly salary and wage supplements from January 1, 2003:

290,000 VND x (3.05 + 0.4) = 1,000,500 VND

- Unemployment allowance based on actual working time before January 1, 2003 is:

724,500 VND/month x 17 months = 12,316,500 VND

- Unemployment allowance based on actual working time from January 1, 2003 is:

1,000,500 VND x 0.5 months = 500,250 VND

-> Total unemployment allowance is: 12,316,500 VND + 500,250 VND = 12,816,750 VND

- Additional allowance based on actual working time before January 1, 2003 is:

724,500 VND/month x 17 months = 12,316,500 VND

- Additional allowance based on actual working time from January 1, 2003 is:

1,000,500 VND x 0.5 months = 500,250 VND

-> Total additional allowance is: 12,316,500 VND + 500,250 VND = 12,816,750 VND

- Fixed one-time allowance = 5,000,000 dong

-> Total amount received is:

12,816,750 VND + 12,816,750 VND + 5,000,000 VND = 30,633,500 VND.

- Mr. F must continue to contribute to social insurance for 3 years (36 months); the monthly social insurance contribution rate is:

1,000,500 VND x 15% = 150,075 VND.

2. Policy for surplus workers implementing fixed-term labor contracts of 1 to 3 years as stipulated in Article 4 of Decree No. 41/2002/NĐ-CP, upon termination of the labor contract, they are entitled to the following benefits (without waiting for the end of the contract period):

2.1. Entitled to unemployment allowance of one month's position salary and allowance (if any) for each year of actual work in the state sector.

2.2. Entitled to 70% of the position salary and allowance (if any) for the remaining months not yet completed in the labor contract, but not exceeding 12 months in total.

Actual working time in the state sector is defined in Point 1.3.2, Clause 1, Section III of this Circular.

Example 7: Mr. Nguyen Van G, sand and gravel extraction worker, signed a fixed-term labor contract of 3 years, at the time of retirement had only worked for 12 months, with 24 months remaining unfulfilled, according to the regulation, he can only enjoy a maximum of 12 months. Therefore, Mr. G is only entitled to unemployment allowance (70% x 12 months) of position salary and allowance (if any).

2.3. Workers who are still short of up to 5 years of age to retire according to the Labor Code, have contributed to social insurance for at least 15 years without receiving a one-time social insurance benefit, as stipulated in Clause 3, Article 4 of Decree No. 41/2002/NĐ-CP, are now regulated as follows:

+ Entitled to the policy as specified in Point 2.1, 2.2, Clause 2, Section III above.

+ Can voluntarily continue to contribute to social insurance monthly at a rate of 15% of the salary until reaching the retirement age according to the Labor Code (60 years old for men, 55 years old for women), then receive monthly pension according to current regulations.

The basis for calculating social insurance contributions is the salary before the date of retirement, including: Position salary, position allowance, regional allowance, salary retention coefficient (if any) calculated based on the minimum wage set by the State at the time of social insurance payment.

The period of continued social insurance contributions starts from the date of the decision to retire.

3. Workers who have received unemployment benefits, if re-employed at the enterprise that previously terminated their employment or at another state-owned enterprise, must return the amount of unemployment benefits according to Article 5 of Decree No. 41/2002/NĐ-CP, specifically as follows:

3.1. An employee may be re-employed at the enterprise that previously terminated their employment or at other state enterprises when submitting an application for recruitment in accordance with current regulations and attaching a copy of the decision on taking leave with benefits under the policy for surplus labor due to restructuring state enterprises, and returning to the recruiting enterprise the additional compensation amount as stipulated in point b, Clause 3, Article 3 of Decree No. 41/2002/NĐ-CP (one month's salary grade, position, and area and position allowances currently received for each year of actual work in the state sector and five million VND).

3.2. The employer shall be responsible for collecting the additional compensation paid by the employee and remitting it to the Fund for Supporting Surplus Labor Due to State Enterprise Restructuring in accordance with the regulations of the Ministry of Finance.

IV. SOURCES OF FUNDS FOR PAYMENTS

The sources of funds for payments under the policy for surplus labor are implemented in accordance with Articles 7 and 8 of Decree No. 41/2002/NĐ-CP and Decision No. 85/2002/QĐ-BTC dated July 1, 2002 issued by the Minister of Finance on the management and utilization of the Fund for Supporting Surplus Labor Due to State Enterprise Restructuring.

V. IMPLEMENTATION

1. Responsibilities of the enterprise.

An enterprise implementing labor restructuring and resolving policies for surplus labor shall implement the following procedures:

1.1. Organize propaganda on the Party and State's policies on continuing to restructure, renovate, develop, and improve the efficiency of state enterprises and policies for surplus labor so that employees are aware.

1.2. Develop a plan for labor restructuring, as follows:

Step 1: Compile a list of all employees of the enterprise at the time of restructuring in accordance with Article 1 of Government Decree No. 41/2002/NĐ-CP (in the form attached to this Circular), including:

- The number of employees currently working and receiving salaries and social insurance contributions or not contributing to social insurance (including seasonal workers or those performing a specific job for less than one year).

- The number of employees who have stopped working but are still listed on the enterprise's payroll, receiving salaries or not, and contributing to social insurance or not.

Step 2: Determine the number of employees needed and surplus employees as follows:

- For enterprises holding 100% state capital and enterprises converted into Limited Liability Companies with One Member: determine the number of employees needed based on production and business plans, production technology, machinery and equipment, labor norms oriented towards enterprise development and profitability, approved by the Ministry of National Defense, the remaining employees are those not required.

- For enterprises implementing shareholding from April 26, 2002 to December 31, 2005, the number of employees needed is determined according to the shareholding plan approved by the Ministry of National Defense, the remaining employees are those not required.

- For joint-stock companies converted from military enterprises operating for no more than 12 months since obtaining a business registration certificate under the Law on Enterprises, when restructuring, if employees transferred from state enterprises cannot be assigned jobs, they will be considered as surplus employees.

For enterprises implementing mergers and consolidations, the number of employees needed is determined according to the merger and consolidation plan approved by the Ministry of National Defense, the remaining employees are those not required.

The surplus employees identified above are divided into two categories: Employees hired before April 21, 1998 are considered surplus employees and will be treated according to the provisions of Decree No. 41/2002/NĐ-CP; Employees hired from April 21, 1998 will be treated according to the provisions of the Labor Code.

* For enterprises implementing dissolution or bankruptcy, all employees listed in the enterprise's payroll hired before April 26, 2002 will be treated according to the provisions of Decree No. 41/2002/NĐ-CP. Employees hired from April 26, 2002 will be treated according to the provisions of the Labor Code.

Step 3: Compile a list of employees needed (in Form 2 attached to this Circular) and a list of surplus employees (in Form 3 attached to this Circular).

Step 4: The enterprise shall coordinate with the Trade Union Executive Committee to organize a Workers' Congress to discuss the lists of employees (from Form 1 to Form 3).

Step 5: Based on the opinions of the Workers' Congress, the enterprise shall complete the labor restructuring plan and report it to the superior authority (directly subordinate to the Ministry of National Defense) for review and submit it to the Ministry of National Defense for approval. The dossier for submission to the Ministry of National Defense for approval includes:

- A request for approval of the labor restructuring plan (in Form 4 attached to this Circular).

- The labor restructuring plan (in Form 5 attached to this Circular).

Lists of employees classified (from Form 1 to Form 3 attached to this Circular).

Specifically, for military enterprises implementing dissolution or bankruptcy, there is no need to approve the enterprise restructuring plan, only the labor restructuring plan needs to be approved (in Forms 1 and 3 attached to this Circular).

The dossier shall consist of seven copies and be sent to the Ministry of National Defense (through the Economic Department) for approval procedures.

1.3. Procedures and formalities for paying compensation to surplus employees.

Within fifteen working days from the date the Ministry of National Defense approves the labor restructuring plan, the enterprise shall proceed as follows:

1.3.1. Issue a decision terminating employment for each surplus employee according to the groups of policies stipulated in Decree No. 41/2002/NĐ-CP (in Form 6 attached to this Circular). The decision shall be made in three copies, one copy sent to the employee, one copy retained by the enterprise, and one copy sent to the Military Social Insurance.

1.3.2. Prepare a budget for payments under the policy for surplus employees according to the groups of policies (in Forms 7, 8, 9, and 10 attached to this Circular).

1.3.3. Prepare seven sets of application documents for financial support from the Redundant Labor Support Fund in accordance with the regulations of the Ministry of Finance (Article 8 of the Management and Utilization Regulation of the Redundant Labor Support Fund issued pursuant to Decision No. 85/2002/QĐ-BTC dated July 1, 2002 of the Minister of Finance).

1.3.4. For employees who have no need for employment but do not fall under the provisions of Decree No. 41/2002/NĐ-CP (in Model No. 11 attached hereto), the enterprise shall prepare a separate list to settle their entitlements in accordance with the Labor Code.

1.4. Settlement of entitlements for redundant employees:

1.4.1. Responsibilities of the enterprise:

+ Based on the decision to cease work, fully and timely provide all stipulated allowances to redundant employees.

+ Issue a free vocational training certificate once to employees who wish to undergo vocational training (Model No. 12 attached hereto).

+ Complete all necessary documentation and procedures for social insurance benefits in accordance with the regulations of the Military Social Insurance and the Vietnam Social Security.

+ Clearly record the reasons for ceasing work and the benefits provided in the labor book, social insurance book, and return all complete documents to the employee in accordance with the law.

+ Within seven working days from the date of receiving funds from the Redundant Labor Support Fund, the enterprise is responsible for directly paying, in one lump sum at the enterprise, the stipulated allowances to employees according to the approved plan.

In cases where employees cannot personally collect the allowances, they may authorize another person to collect them in accordance with the Civil Code.

If an employee dies after the effective date of the decision to cease work without having signed to receive the amount due, the enterprise shall transfer this amount to the administrator of the deceased's estate in accordance with the Civil Code.

1.4.2. Responsibilities of employees when enjoying entitlements:

+ Sign to receive all amounts of allowances received.

+ Sign to receive all cessation of work documents.

+ Settle any outstanding debts owed to the enterprise (if any).

1.5. The enterprise must report the results of implementing the settlement of entitlements for redundant employees to competent authorities within thirty working days from the completion of such settlement.

The report includes an assessment of strengths and weaknesses, and the results of disbursing allowances to redundant employees. The report shall be prepared in six copies and sent to the following agencies:

- The superior unit (the main unit under the Ministry of National Defense);

- The Ministry of National Defense (through the Economic Department);

- Ministry of Finance;

- Ministry of Labor, Invalids, and Social Affairs;

- The Military Social Insurance;

- Retain by the enterprise.

2. Responsibilities of employees when undergoing vocational training.

Redundant employees who wish to undergo vocational training and have been issued a free vocational training certificate must submit their training application to the vocational training institution notified through mass media by the Department of Labor, Invalids, and Social Affairs. The deadline for submitting the training application is ninety days from the date of the decision to cease work. The application includes:

- Free vocational training certificate (original); Decision to cease work and enjoy policy for redundant labor due to restructuring of state-owned enterprises (copy).

3. Responsibilities of units subordinate to the Ministry of National Defense (Military Region, Military Service, Branch, General Department, etc.):

- Guide enterprises under the unit to develop restructuring plans, including labor adjustment plans.

- Guide enterprises to promptly prepare and submit reports in accordance with point 1.5, clause 1, Section IV of this Circular.

- Aggregate the reports of each enterprise and send them to the Ministry of National Defense (through the Economic Department) for approval.

- Urge enterprises to expedite the submission of reports to the designated addresses to quickly receive funding for redundant labor support.

- Urge and inspect the implementation of entitlements for redundant labor in enterprises under their jurisdiction.

4. Responsibilities of functional agencies under the Ministry of National Defense:

The Economic Department shall take the lead in coordinating with the Policy Department and the Financial Department to assume responsibility.

4.1. Organize guidance for military enterprises to properly and fully implement government policies for redundant labor due to restructuring.

4.2. Receive labor adjustment plans submitted by units and proceed with the necessary procedures to submit to the Minister of National Defense for review and approval.

Within fifteen working days from the date of receipt of the labor adjustment plan of the enterprise, submit it to the Minister of National Defense for approval.

The approved file shall be retained in one copy, and six copies shall be returned to the enterprise to be sent to the following units:

- Economic Department/Ministry of National Defense;

- The superior unit (the main unit under the Ministry of National Defense);

- Ministry of Finance (Redundant Labor Support Fund).

- Ministry of Labor, Invalids, and Social Affairs;

- The Military Social Insurance;

- Retain by the enterprise.

In cases where approval is not granted, the Ministry of National Defense will guide the enterprise to resubmit. Within ten working days from the date of receipt of the resubmission guidance, the enterprise must complete and resubmit to the Ministry of National Defense for approval.

This Circular takes effect fifteen days from the date of publication in the Official Gazette./.