DECREE NO. 72/CP PROVIDES DETAILED PROVISIONS AND GUIDELINES FOR IMPLEMENTATION OF CERTAIN ARTICLES OF THE LABOUR CODE ON EMPLOYMENT

DECREE OF THE GOVERNMENT

Regulations detailing and guiding the implementation of certain provisions of the Labor Code on employment

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Labour Code dated June 23, 1994;

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

DECREE: 

PART I

CHAPTER EMPLOYMENT PROGRAMME

Article 1. The employment program under Clause 1, Article 15 of the Labor Code includes: Objectives, new job creation targets, policies, resources, organizational systems, and measures to ensure the implementation of the program.

Developing the program must ensure its systematic nature and the connection between objectives and conditions for achieving those objectives.

Article 2.

1. New job creation targets under Article 14 of the Labor Code are defined as the number of new workers needed to be recruited for regular work at organizations, units, and individuals employing labor from all economic sectors due to new establishment needs, expansion in scale and activities, and labor reorganization.

2. In annual and five-year socio-economic development plans at various levels and sectors, target programs must include new job creation targets.

Article 3. The Ministry of Labor - War Invalids and Social Affairs shall study proposals for building and implementing the national employment program to be submitted to the Prime Minister for decision.

Article 4. The State Planning Commission shall lead, together with the Ministry of Labor - War Invalids and Social Affairs and relevant ministries and sectors, to establish new job creation targets in annual and five-year plans to be submitted to the Government for decision.

The Ministry of Labor - War Invalids and Social Affairs shall be responsible for guiding, inspecting, and reporting to the Government on the results of the implementation of new job creation targets annually and over five years.

Article 5.

1. Annually, the Ministry of Labor - War Invalids and Social Affairs shall lead, together with the State Planning Commission, the Ministry of Finance, and relevant ministries and sectors, to develop plans for implementing the national employment program and the national employment fund to be submitted to the Government for presentation to the National Assembly for decision at its final session of the year.

2. The Ministry of Labor - War Invalids and Social Affairs shall be responsible for organizing the implementation, inspecting, and reporting to the Government on the results of the implementation of the national employment program.

Article 6.

1. The national employment fund under Clause 1, Article 15 of the Labor Code shall be established from the following sources:

a) Allocating a portion of the state budget annually;

b) Other sources outside the state budget including assistance from other countries, international organizations, and foreign individuals; support from domestic units and individuals to address employment issues.

2. The national employment fund shall be used for the following purposes:

a) Supporting employment service organizations;

b) Supporting units experiencing temporary difficulties to prevent many workers from losing their jobs;

c) Supporting units accepting workers who have lost their jobs upon recommendation by local labor, war invalids, and social affairs authorities;

d) Providing low-interest loans to support employment for certain groups under social policy as specified by the Ministry of Labor - War Invalids and Social Affairs;

đ) Supporting employment funds for disabled persons.

3. The Ministry of Finance shall lead, in coordination with the Ministry of Labor - War Invalids and Social Affairs and the State Planning Commission, to draft and promulgate regulations governing the management of the national employment fund, and guide localities in drafting and implementing regulations governing the management of local employment funds.

4. The Ministry of Labor - War Invalids and Social Affairs shall organize the implementation of the regulations governing the management of the national employment fund.

Article 7.

1. Each year, the People's Committee of provinces and centrally-administered cities shall develop local employment programs and funds to be submitted to the People's Councils at the same level for decision and implementation; they shall also report the results to the Ministry of Labor - War Invalids and Social Affairs, the State Planning Commission, and the Ministry of Finance.

2. The People's Committee of provinces and centrally-administered cities shall provide guidance, support, and inspection of employment programs at district and commune levels.

2. The employment resolution fund of provinces and centrally-administered cities shall be formed from the following sources:

a) Allocating a portion of the local budget, decided by the People's Council of the province or centrally-administered city;

b) Support from the national employment fund;

c) Other sources.

4. Employment resolution funds of provinces and centrally-administered cities must be used according to the objectives of the provincial employment resolution program and to support the employment resolution program at the district level. The Chairman of the People's Committee of the province or centrally-administered city shall direct the Department of Labor - War Invalids and Social Affairs, the Provincial Planning Commission, the Department of Finance, and other organizations to implement the employment resolution program and manage the local employment resolution fund.

Article 8. Employment service organizations under Clause 1, Article 18 and Article 156 of the Labor Code shall be uniformly named "Employment Service Center," followed by the name of the locality or organization.

Article 9. The Employment Service Center is a self-financing public service unit in the field of social activities, established by the State or mass organizations.

Article 10.

1. The Employment Service Center has the following responsibilities:

a) Advising workers and employers on labor policies and employment; vocational guidance and training;

b) Introducing workers to places that need workers and suitable locations for vocational training;

c) Organizing the supply of labor to Vietnamese and foreign employers operating legally in Vietnam;

d) Providing information about the labor market to workers and Vietnamese and foreign employers operating legally in Vietnam; to state agencies managing labor and employment according to regulations of the Ministry of Labor - War Invalids and Social Affairs.

2. The Employment Service Center has the right to:

a) Organize vocational training linked to job creation;

b) Organize production to utilize technical facilities, combine theory with practice, and solve employment issues locally as prescribed by law;

c) Collect fees, tuition, and charges as stipulated by the Ministry of Finance, the Ministry of Labor - War Invalids and Social Affairs, and specific guidelines of the People's Committee of the province or centrally-administered city.

Article 11.

1. The establishment of Employment Service Centers in provinces and centrally-administered cities shall be decided by the Chairman of the People's Committee of the province or centrally-administered city based on the proposal of the Department of Labor - War Invalids and Social Affairs, after obtaining the agreement of the Ministry of Labor - War Invalids and Social Affairs.

2. The establishment and dissolution of Employment Service Centers of agencies, mass organizations shall be decided by the heads of central agencies of such mass organizations after reaching consensus with the Ministry of Labor, Invalids and Social Affairs.

3. The establishment of special Employment Service Centers under certain Ministries shall be decided by the Minister after reaching consensus with the Ministry of Labor, Invalids and Social Affairs.

Article 12. The application for establishing an Employment Service Center includes:

1. A request to establish an Employment Service Center;

2. A proposal for establishing an Employment Service Center, which must clearly state the necessity, objectives, tasks, and conditions to achieve these objectives and tasks.

Article 13. Within thirty days from the date of the establishment decision, the Employment Service Center must publish five consecutive issues in local newspapers regarding its name, location, telephone number, bank account, director, date of establishment, start date of operation, and main field of activity.

The establishment decision of the Employment Service Center must be sent to the Ministry of Labor, Invalids and Social Affairs, the Government’s Organizational and Cadre Management Board, and the Ministry of Finance, each receiving one original copy.

Article 14.

1. The sources of income and expenditure of the Employment Service Center include:

a) Income:

Fees, tuition fees, charges;

State orders, contracts of units and individuals;

State support;

Sponsorship from organizations and individuals both domestically and internationally;

Other sources.

b) Expenditure:

Costs for construction, maintenance, and development of technical infrastructure;

Costs for raw materials and supplies for vocational training;

Salaries for management staff.

Other expenditures.

2. The activities of Employment Service Centers shall be subject to tax reduction or exemption according to the provisions of the law.

3. The Ministry of Finance shall guide financial management regulations for Employment Service Centers in accordance with the state's financial management system.

Article 15. All Employment Promotion Centers established before the issuance of this Decree must re-establish themselves in accordance with this Decree and the guidance of the Ministry of Labor, Invalids and Social Affairs.

Article 16. The Ministry of Labor, Invalids and Social Affairs shall uniformly manage the state administration over employment service organizations throughout the country in accordance with Clause 3, Article 18 of the Labor Code on the following matters:

1. Issuing regulations on the organization and operation of Employment Service Centers;

2. Approving the establishment of Employment Service Centers;

3. Guiding and inspecting the activities of Employment Service Centers in accordance with the law;

4. Studying, building, amending, and supplementing regulations and policies for Employment Service Centers.

Article 17.

1. The Ministry of Finance shall be responsible for researching and building financial support policies; tax reduction and exemption policies to encourage workers to solve their own employment and create jobs for many workers.

2. The State Bank of Vietnam shall be responsible for researching and building loan policies to encourage workers to solve their own employment and create jobs for many workers.

3. The Ministry of Science, Technology and Environment shall be responsible for researching and building policies to encourage the development and application of new technologies and trades to create jobs for many workers and encourage workers to create their own jobs.

Article 18. The Committee for Ethnic Minorities and Mountainous Areas shall take the lead, together with the Ministry of Labor, Invalids and Social Affairs, and the Ministry of Finance, to research and build preferential policies for job placement to attract and utilize ethnic minority labor.

PART II

EMPLOYMENT AND UNEMPLOYMENT ASSISTANCE
DUE TO STRUCTURAL CHANGES OR TECHNOLOGICAL UPDATES

Article 19.

1. Workers have the right to work for any employer at any place not prohibited by law.

2. The application for employment includes: an employment application form, a labor record as prescribed by the Ministry of Labor, Invalids and Social Affairs.

In cases where workers do not have a labor record, they must provide a resume, vocational certificates, and other relevant documents as required by the employer.

Article 20. When recruiting workers, employers must fully inform the recruitment criteria, rights, and responsibilities of both workers and employers during the employment period.

Article 21. Recruitment of Vietnamese workers for employment in enterprises established under the Law on Foreign Investment in Vietnam, export processing zones, industrial parks, foreign agencies and organizations, or working for individual foreigners in Vietnam, shall be conducted as follows:

1. Recruitment of workers or referral must be carried out through Employment Service Centers as stipulated in Article 10 of this Decree at the request of enterprises, organizations, and individuals.

The fee for recruitment or referral may only be charged once by the employer at the agreed rate but shall not exceed:

5% of the first month's salary recorded in the labor contract for each case referred.

8% of the first month's salary recorded in the labor contract for each case entrusted.

Procedures and documents for recruitment of workers shall be prescribed by the Ministry of Labor, Invalids and Social Affairs.

Recruitment of workers for diplomatic agencies shall be regulated by the joint decree of the Ministry of Labor, Invalids and Social Affairs and the Ministry of Foreign Affairs.

2. If the Employment Service Center confirms that it cannot meet the recruitment requirements or refer workers, enterprises, organizations, and individuals have the right to directly recruit workers and must report to the Department of Labor, Invalids and Social Affairs.

3. After each recruitment campaign, enterprises, organizations, and individuals must report the results to the Department of Labor, Invalids and Social Affairs in accordance with the regulations of the Ministry of Labor, Invalids and Social Affairs.

Article 22. Every January and July, employers must report to the Department of Labor, Invalids and Social Affairs at their headquarters on the situation of labor utilization, recruitment needs, and the implementation of labor policies and systems according to the prescribed model of the Ministry of Labor, Invalids and Social Affairs.

Article 23. The following situations are considered structural changes or technological updates as provided for in Clause 1, Article 17 of the Labor Code:

1. Replacing part or all machinery and equipment with higher productivity.

2. Replace some stages or the entire advanced production process with higher labor productivity;

3. Change products or product structure leading to less labor usage;

4. Use advanced technology with higher productivity and quality to replace outdated technology;

5. Change organizational structure: merge or dissolve certain parts of the unit.

If the changes above lead to workers losing their jobs, the employer shall be responsible for retraining the workers for new jobs. If new employment cannot be secured and the workers must be laid off, the employer must pay severance pay according to Clause 1, Article 17 of the Labor Code and Articles 24 and 25 of this Decree.

Article 24. The basis for calculating severance pay is provided in Clause 1, Article 17 of the Labor Code.

1. The wage level for calculating severance pay is specified in Decree No. 197/CP dated December 31, 1994 of the Government detailing and guiding the implementation of certain provisions of the Labor Code on wages.

2. The period for calculating severance pay is the continuous working time for that employer until the worker loses their job.

In cases where workers in state-owned enterprises lose their jobs as stipulated in Clause 1, Article 17 of the Labor Code and Article 25 of this Decree, and before that had worked at other units also under the state sector but had not received severance pay, then that working time will be counted towards receiving severance pay, with each year of work being equivalent to half a month's salary. This amount will be transferred by the previous unit upon notification from the current unit where the worker is employed, for payment to the worker. In cases where the previous unit has been dissolved, the severance pay will be paid from the state budget, and the currently operating unit with unemployed workers will pay this severance pay on behalf of the state budget.

3. Working time with fractional months is defined as follows:

a) Less than one month is not counted.

b) From one month up to less than seven months is counted as six months of work.

c) From seven months up to twelve months is counted as one year of work.

Article 25.

1. In cases where multiple workers lose their jobs as stipulated in Clause 2, Article 17 of the Labor Code and Article 23 of this Decree, they shall be handled in the following order:

a) Workers who voluntarily submit a resignation letter;

b) Workers who violate labor discipline but have not reached the level of dismissal;

c) Young, healthy workers with skills and the ability to find new jobs elsewhere;

d) Workers belonging to preferential policy groups: Heroes of the Armed Forces, Heroes of Labor, war invalids, disabled veterans, persons enjoying benefits similar to those of war invalids, relatives of martyrs, persons participating in the resistance movement, and persons contributing to the revolution.

2. Severance pay for workers shall be paid no later than seven days from the date the worker loses their job.

3. Severance pay shall be directly paid in one lump sum to the worker at the workplace or at a location most convenient for the worker.

Article 26. All enterprises must establish a reserve fund for severance pay according to Clause 3, Article 17 of the Labor Code:

a) Sources for forming the reserve fund for severance pay are extracted from the remaining profits of the enterprise after fulfilling all obligations to the state, the Ministry of Finance, and the Ministry of Labor, War Invalids, and Social Affairs will guide the establishment and management system of this fund.

b) The fund is used for the following main purposes:

Paying severance pay to workers who lose their jobs in the enterprise;

Funding training due to structural or technological changes; training reserve vocational skills for female workers in the enterprise, and enhancing the professional qualifications of workers.

c) Enterprises are responsible for managing, using, and developing the fund in accordance with the law.

CHAPTER III

IMPLEMENTING PROVISIONS

Article 27. This Decree takes effect from the date of signature. Previous regulations contrary to the Labor Code and this Decree are abolished.

Article 28. The Ministry of Labor, War Invalids, and Social Affairs, the Ministry of Finance, the State Planning Commission, the Ministry of Foreign Affairs, and other ministries and sectors within their respective functions, tasks, and authorities shall be responsible for guiding the implementation of this Decree.

Article 29. The Minister, the head of a ministry-level agency, the head of a government agency, and the Chairperson of the provincial people's committee and municipal people's committee under central jurisdiction shall be responsible for implementing this Decree.