Decision No. 85/2002/QÐ-BTC promulgates the regulations on management and use of the fund for surplus labor due to restructuring state-owned enterprises.

MINISTRY OF FINANCE ********	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ********
Number: 85/2002/QĐ-BTC	Hanoi, July 1, 2002

 

Pursuant to …;

OF THE MINISTER OF FINANCE NUMBER 85/2002/QĐ-BTC OF JULY 1, 2002 ON THE ISSUANCE OF REGULATIONS ON MANAGEMENT AND USE OF THE FUND TO SUPPORT REDUNDANT LABOR FROM RESTRUCTURING STATE ENTERPRISES

THE MINISTER OF FINANCE

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government stipulating the tasks, powers, and responsibilities for state management of ministries, ministerial-level agencies;
Pursuant to Decree No. 178/CP dated October 28, 1994 of the Government stipulating the tasks, powers, and organizational structure of the Ministry of Finance;
Pursuant to Decree No. 41/2002/NĐ-CP dated April 11, 2002 of the Government on Policies for Redundant Labor Resulting from the Reorganization of State-Owned Enterprises;
At the proposal of the Director of the Financial Policy Department and the Director of the Enterprise Finance Department;

DECISION:

Article 1:

The accompanying this Decision are the Regulations on Management and Use of the Fund to Support Redundant Labor from Restructuring State Enterprises.

Article 2:

The Director of the Department of Enterprise Finance is authorized to be the account holder and manage and direct the Fund to Support Redundant Labor from Restructuring State Enterprises.

Article 3:

This Decision takes effect from April 26, 2002 until December 31, 2005.

Ministers, heads of ministerial-level agencies, heads of government agencies, Chairmen of the Boards of Directors of the 91 State Corporations, units under the national financial system and state treasuries, and organizations and individuals related thereto shall be responsible for implementing this Decision.

 

TRAN VAN TA (Signed)

 

REGULATIONS

MANAGEMENT AND USE OF THE FUND TO SUPPORT REDUNDANT LABOR FROM RESTRUCTURING STATE ENTERPRISES
(Accompanying Decision No. 85/2002/QĐ-BTC dated July 1, 2002 of the Minister of Finance)

I - GENERAL PROVISIONS

Article 1:

The "Fund to Support Redundant Labor from Restructuring State Enterprises" (hereinafter referred to as the Fund to Support Redundant Labor) is established to support workers who lose their jobs or retire early (hereinafter referred to as redundant labor) due to restructuring state enterprises as prescribed in Decree No.

41/2002/NĐ-CP dated April 11, 2002 of the Government on policies for redundant labor from restructuring state enterprises (hereinafter referred to as Decree No. 41/2002/NĐ-CP).

The Fund to Support Redundant Labor provides funding to state enterprises subject to restructuring measures according to the Government's plan, joint-stock companies converted from state enterprises with restructuring plans confirmed by competent state authorities within twelve months from the date of issuance of business registration certificates under the Law on Enterprises (hereinafter referred to as joint-stock companies), organizations established to resolve redundant labor in state enterprises that have been dissolved or declared bankrupt (hereinafter collectively referred to as enterprises), social insurance agencies, vocational training centers for redundant labor.

Article 2:

The Fund to Support Redundant Labor is headquartered at the Ministry of Finance (Department of Enterprise Finance - No. 4, Hang Chau Alley 1, Hang Chau Street, Hanoi) and opens an account at the Central Treasury to receive and utilize funds as prescribed in these Regulations.

Article 3: The sources of the Fund to Support Redundant Labor are formed from:

- State budget;

The Fund is formed from:

- Donations from organizations and individuals;

Article 4:

The Fund to Support Redundant Labor is responsible for providing funding to the correct recipients, for the intended purposes, in a transparent manner. The Fund to Support Redundant Labor only supports funding once per enterprise and once per worker.

II - CONTENTS OF SUPPORT FROM THE FUND TO SUPPORT REDUNDANT LABOR

Article 5:

The Fund to Support Redundant Labor implements support for redundant workers as prescribed in point b, Clause 1, Clause 2, and points b and c, Clause 3, Article 3; Clause 2, Article 4 of Decree No.

41/2002/NĐ-CP and guidelines issued by the Ministry of Labor, Invalids and Social Affairs.

Article 6: For enterprises experiencing financial difficulties after using up the balance of the reserve fund for unemployment benefits (fully established in accordance with state regulations) and lacking sufficient resources to pay unemployment benefits to workers losing their jobs under the responsibility of the enterprise as prescribed in point a, Clause 3, Article 3, Clause 1, Article 4 of Decree No.

41/2002/NĐ-CP, the Fund to Support Redundant Labor will provide the remaining amount.

For state enterprises that have been dissolved or declared bankrupt, the Fund to Support Redundant Labor will provide full funding to settle the obligations of the enterprise for redundant workers hired before April 26, 2002.

Article 7:

Workers who have received assistance from the Fund to Support Redundant Labor and are re-employed by the enterprise that previously terminated their employment, or by another state enterprise, must comply with the provisions of point 3, Part II of Circular No.

11/2002/TT-BLĐTB&XH dated June 12, 2002 of the Ministry of Labor, Invalids and Social Affairs guiding certain provisions of Decree No. 41/2002/NĐ-CP (hereinafter referred to as Circular No. 11/2002/TT-BLĐTB&XH).

The enterprise hiring the worker has the responsibility to recover the amount of assistance paid out and deposit it into the account of the Fund to Support Redundant Labor opened at the Central Treasury immediately upon signing the labor contract. At the same time, they must inform the Fund to Support Redundant Labor about the recovery and deposit of funds into the Fund to Support Redundant Labor's account.

Enterprises and individual workers must bear legal responsibility if they violate the provisions of this Article.

III - PROCEDURES FOR SUPPORT FROM THE FUND TO SUPPORT REDUNDANT LABOR

A - GRANTING FUNDS FROM THE FUND TO SUPPORT REDUNDANT LABOR TO ENTERPRISES:

Article 8: After completing the procedures specified in item c2, point 1, Part IV of Circular No. 11/2002/TT-BLĐTB&XH, the enterprise prepares the necessary documentation for the Fund to Support Redundant Labor to consider granting funds to the enterprise, including:

- Application for payment of funds (Form No. 01, this Regulation);

- Financial statements of the enterprise at the time of restructuring and for the two preceding years;

- The labor restructuring plan approved or confirmed by the ministry, ministerial-level agency, government agency, provincial People's Committee, central city People's Committee, Board of Directors of the 91 State Corporation (collectively referred to as the competent state authority) including models 1, 2, 3, 4, 5 prescribed in Circular No. 11/2002/TT-BLĐTB&XH. For state enterprises undergoing dissolution or bankruptcy, this includes decisions on dissolution or declaring bankruptcy.

- List of redundant labor and budget estimates for payments to redundant labor under the policy groups prescribed in Decree No. 41/2002/NĐ-CP as shown in models 7, 8, 9, 10 prescribed in Circular No. 11/2002/TT-BLĐTB&XH.

Models 7, 8, 9, and 10 mentioned above must be reviewed or confirmed by the competent state authority, or for joint-stock companies.

As for Form No. 08 regarding the list of workers who have reached the retirement age according to current regulations but are still short of up to one year of social insurance contributions and the budget for social insurance contributions must also be confirmed by the Social Insurance Agency where the enterprise participates in social insurance, and record the account number and the place where the account is opened by the Social Insurance Agency as the basis for disbursing funds from the Redundant Labor Support Fund to the Social Insurance Agency.

The enterprise is responsible for the accuracy and honesty in preparing the dossier. The competent state agency is responsible for the results of the review and confirmation of the dossier. In case of violations, both the enterprise and the competent state agency shall bear legal responsibility.

Article 9: The date for determining when workers leave their jobs to prepare Forms 7, 8, 9, and 10 as stipulated in Circular No. 11/2002/TT-BLDTBXH is the day the decision to allow redundant workers to retire is made (the day the competent state agency approves the labor adjustment plan plus a maximum of 15 working days), or the day the business registration certificate is issued under the Enterprise Law for joint-stock companies, or the effective date of the dissolution decision or bankruptcy declaration decision of the competent authority for state-owned enterprises that are dissolved or bankrupt.

Article 10: The list of redundant labor and the budget for payments to redundant workers according to the main policies prescribed in Decree No.

41/2002/NĐ-CP is reflected in Forms Nos. 7, 8, 9, and 10 as stipulated in Circular No. 11/2002/TT-BLDTBXH must be publicly announced by the enterprise before sending for review or confirmation so that redundant workers can check the calculation of benefits to ensure they receive the correct benefits as prescribed.

Article 11: The enterprise must submit the dossier specified in Article 8 of this Regulation to the Redundant Labor Support Fund, the competent state agency, the Ministry of Labor, Invalids and Social Affairs, the Social Insurance Agency where the enterprise participates in social insurance, the Department of Labor, Invalids and Social Affairs, and retain a copy of the dossier at the enterprise.

Article 12:

Within ten working days from the date of receipt of the dossier, the Redundant Labor Support Fund will examine, determine the amount of funds to be disbursed, and issue a decision approving the disbursement of funds from the Redundant Labor Support Fund to the enterprise, with details as follows:

- Disburse funds to pay severance benefits to workers retiring early.

- Disburse funds to pay severance benefits to workers with indefinite-term contracts who lose their jobs.

- Disburse funds to pay severance benefits to workers with fixed-term contracts of one to three years who lose their jobs.

- Provide support for the remaining portion of the funds that the enterprise is responsible for paying as severance benefits.

This decision will be sent to the enterprise, the competent state agency, the Ministry of Labor, Invalids and Social Affairs, the Central Treasury, and retained in the enterprise's dossier at the Redundant Labor Support Fund.

If the dossier does not meet the requirements as prescribed or contains errors in the calculation data, within ten working days from the date of receipt of the dossier, the Redundant Labor Support Fund will notify the competent state agency and the enterprise in writing to complete it.

Article 13:

Based on the Decision approving the disbursement of funds from the Redundant Labor Support Fund to the enterprise, within five working days, the Redundant Labor Support Fund will transfer the funds into the enterprise's account to implement the payment of severance benefits to redundant workers.

Article 14: After receiving the funds from the Redundant Labor Support Fund, the enterprise will proceed to pay the severance benefits to redundant workers as stipulated in Subparagraph d, Paragraph 1, Part IV of Circular No. 11/2002/TT-BLDTBXH.

When paying severance benefits to workers, the enterprise must prepare a payment voucher (Form No. 02 - Decision No. 1141/TC/QD-CĐKT dated November 1, 1995 of the Ministry of Finance); prepare a list of workers receiving severance benefits (Form No. 2, this Regulation).

Workers are responsible for signing to confirm receipt of the severance benefits on both the payment voucher and the aforementioned list.

The trade union organization of the enterprise and the competent state agency are responsible for supervising and inspecting the payment of severance benefits to redundant workers at the enterprise.

The enterprise must pay the correct recipients, the correct amounts, and bear responsibility for compensating for any material losses resulting from errors and shortages.

Article 15: Within thirty days from the completion of the payment of severance benefits to redundant workers, the enterprise must prepare a final settlement report, send it to the competent state agency for inspection and confirmation. The final settlement report includes the following documents:

- List of workers receiving severance benefits (Form No. 02, this Regulation), original;

- Summary report on the use of funds disbursed from the Redundant Labor Support Fund, detailing each type of support listed in the support notification of the Redundant Labor Support Fund, surplus funds, and reasons (Form No. 03, this Regulation);

After obtaining the confirmation opinion of the competent state agency, the enterprise sends the final settlement report and the report on the implementation of labor adjustment as stipulated in Subparagraph e, Paragraph 1, Part IV of Circular No. 11/2002/TT-BLDTBXH to the Redundant Labor Support Fund.

The enterprise and the competent state agency are legally responsible for the accuracy and honesty of the final settlement report.

Article 16: For any surplus funds disbursed from the Redundant Labor Support Fund to the enterprise when settling accounts, within five working days from the date of submitting the final settlement report to the Redundant Labor Support Fund, the enterprise must immediately deposit the surplus funds into the account of the Redundant Labor Support Fund opened at the Central Treasury.

B - DISBURSE FUNDS FROM THE REDUNDANT LABOR SUPPORT FUND TO THE SOCIAL INSURANCE AGENCY:

Article 17: Within ten working days from the date of receiving the list of workers who have reached the retirement age as prescribed but are still lacking up to one year of social insurance contributions and the budget estimate for social insurance contributions (Form No. 08, Circular No. 11/2002/TT-BLDTBXH) in the enterprise's file as stipulated in Article 8 of this Regulation, the Fund for Surplus Labor shall examine and determine the amount of funds to be granted to the Social Insurance Agency and issue a decision approving the allocation of funds from the Fund for Surplus Labor to the Social Insurance Agency.

This decision shall be sent to the Social Insurance Agency, the enterprise, the competent state agency, the Ministry of Labor, Invalids and Social Affairs, the State Treasury Central Office, and kept in the enterprise's file at the Fund for Surplus Labor.

In cases where the file does not meet the requirements as prescribed or contains errors in calculation data, within the aforementioned ten working days, the Fund for Surplus Labor shall notify the enterprise, the competent state agency, and the Social Insurance Agency in writing to complete the file.

Article 18:

Based on the Decision approving the allocation of funds from the Fund for Surplus Labor to the Social Insurance Agency, within five working days, the Fund for Surplus Labor shall transfer the funds into the account of the Social Insurance Agency.

Article 19:

After receiving the funds transferred from the Fund for Surplus Labor, within ten working days, the Social Insurance Agency shall confirm that the workers have paid sufficient social insurance contributions and transfer surplus workers to enjoy pension benefits according to current social insurance regulations.

Within five working days from the completion of transferring surplus workers to enjoy pension benefits, the Social Insurance Agency must report the results of using funds from the Fund for Surplus Labor (Form No. 04, this Regulation) to the Fund for Surplus Labor.

C - ALLOCATION OF FUNDS FROM THE FUND FOR SURPLUS LABOR TO VOCATIONAL TRAINING INSTITUTIONS:

Article 20:

Quarterly, vocational training institutions designated to train surplus workers are responsible for preparing and submitting to the Fund for Surplus Labor an Application for Payment of Training Costs (Form No. 05, this Regulation), along with original Free Training Certificates and copies of decisions on retirement benefits for surplus workers due to enterprise restructuring.

The Application for Payment of Training Costs must be reviewed by the Department of Labor, Invalids and Social Affairs where the vocational training institution is located regarding the actual number of surplus workers trained, the duration of training (maximum six months), and by the Department of Finance and Prices where the vocational training institution is located regarding the cost of training, which cannot exceed 350,000 dong per person per month.

The Department of Labor, Invalids and Social Affairs and the Department of Finance and Prices bear legal responsibility for the truthfulness and accuracy of the Application for Payment of Training Costs submitted by the training institution after review.

Article 21:

Within ten working days from the date of receipt of the file submitted by the vocational training institution, the Fund for Surplus Labor shall verify and determine the amount of funds to be allocated and issue a decision approving the allocation of funds from the Fund for Surplus Labor to the vocational training institution.

This decision shall be sent to the vocational training institution, the Department of Labor, Invalids and Social Affairs, the Department of Finance and Prices, the Ministry of Labor, Invalids and Social Affairs, the State Treasury Central Office, and kept in the vocational training institution's file at the Fund for Surplus Labor.

In cases where the file does not meet the requirements as prescribed or contains errors in calculation data, within ten working days from the date of receipt of the file submitted by the vocational training institution, the Fund for Surplus Labor shall notify the vocational training institution, the Department of Labor, Invalids and Social Affairs, and the Department of Finance and Prices in writing to complete the file.

Article 22:

Based on the Decision approving the allocation of funds from the Fund for Surplus Labor to the vocational training institution, within five working days, the Fund for Surplus Labor shall transfer the funds into the account of the vocational training institution.

IV - ESTABLISHING THE FUND FOR SURPLUS LABOR SOURCE PLAN

Article 23:

Annually, the Fund for Surplus Labor shall establish a plan for mobilizing and utilizing the Fund source together with the time for preparing the state budget estimate to submit to the Prime Minister for consideration and decision.

Article 24:

The plan for mobilizing and utilizing the Fund for Surplus Labor is based on the following grounds:

- The program for restructuring state-owned enterprises as planned by the Government;

- The financial needs of enterprises with surplus labor reported by the competent state agency;

- The ability to mobilize funds from sources prescribed in Article 3 of this Regulation for the operation of the Fund for Surplus Labor.

The annual plan for mobilizing and utilizing the Fund for Surplus Labor is compiled separately for each competent state agency and detailed quarterly.

Article 25:

At the same time as preparing the annual state budget estimate, the competent state agency and the General Company 91 are responsible for compiling and submitting to the Fund for Surplus Labor, and sending to the Ministry of Labor, Invalids and Social Affairs, a plan for labor restructuring and the need for subsidies for surplus workers for the next year.

The plan submitted by the competent state agency to the Fund for Surplus Labor includes the following contents: the estimated number of surplus workers and the amount of support funds from the Fund for Surplus Labor for each enterprise (Form No. 06, this Regulation).

If the competent state agency does not submit a plan for labor restructuring and the need for subsidies for surplus workers to the Fund for Surplus Labor, it will be considered as having no need for funds to be allocated from the Fund for Surplus Labor and will not be included in the Fund for Surplus Labor source plan.

V - RECORD KEEPING AND REPORTING SYSTEM

Article 26:

The Fund for Surplus Labor is responsible for maintaining records to monitor the mobilization and utilization of the Fund for Surplus Labor and implementing accounting in accordance with the current financial management regulations.

Recording of allocated funds must be clear and complete, ensuring timely updates of all activities and organizing the storage of files and vouchers in accordance with the prescribed regulations.

Article 27:

Within thirty days after the end of each quarter, the Redundant Labor Support Fund shall be responsible for reporting to the Minister of Finance on the progress of implementing the plan for mobilizing and using the Redundant Labor Support Fund resources of the previous quarter.

Not later than forty-five days after the end of the fiscal year, the Redundant Labor Support Fund must complete the preparation of the annual settlement report and submit it to the Minister of Finance for reporting to the Prime Minister. The report must fully and truthfully reflect the activities of the Redundant Labor Support Fund during the year, including: the opening balance of the Fund's resources at the beginning of the year, the resources mobilized during the year, the resources used during the year, the closing balance of the Fund's resources at the end of the year, accompanied by confirmation of the account balance at the Central Treasury; the number of redundant workers who have received support from the Redundant Labor Support Fund and the expenditure funds compiled according to each competent state agency, detailed according to each type of support from the Redundant Labor Support Fund, and detailed according to each quarter.

Article 28: Enterprises, social insurance agencies, vocational training institutions receiving funds from the Redundant Labor Support Fund shall be responsible for keeping books, vouchers, and relevant documents related to the use of funds in accordance with current regulations to serve the inspection and supervision work of the Redundant Labor Support Fund and other relevant agencies.

Article 29:

Enterprises receiving funds from the Redundant Labor Support Fund shall be responsible for submitting financial reports of the two subsequent years following the completion of enterprise restructuring to the Redundant Labor Support Fund to serve the assessment of the effectiveness of the Redundant Labor Support Fund.

VI - IMPLEMENTATION

Article 30:

State agencies with authority, Departments of Labor, Invalids and Social Affairs, enterprises, social insurance agencies, vocational training institutions, and redundant workers shall implement the provisions of this Regulation.

Article 31:

Responsibilities of units under and affiliated with the Ministry of Finance:

1.- The Enterprise Financial Department shall be responsible for:

- Preparing the plan for the Redundant Labor Support Fund and reporting it to the Minister of Finance for submission to the Prime Minister.

- Receiving and examining files submitted by enterprises and vocational training institutions and issuing Decisions approving the allocation of funds from the Redundant Labor Support Fund to enterprises, social insurance agencies, and vocational training institutions in accordance with the time limits stipulated in this Regulation.

- Notifying enterprises, social insurance agencies, and vocational training establishments in writing to complete their dossiers if they do not meet the requirements stipulated in this regulation.

- Inspecting and settling the amount of funding provided to enterprises, social insurance agencies, and vocational training establishments.

- Implementing the system of record-keeping, accounting work, and reporting on the Redundant Labor Support Fund in accordance with the provisions of this Regulation.

2.- The Central Treasury shall be responsible for:

- Allocating funds to enterprises, social insurance agencies, and vocational training institutions.

- Conducting treasury control over the use of funds by enterprises, social insurance agencies, and vocational training institutions in accordance with the approved fund allocation decisions from the Redundant Labor Support Fund.

3.- The Financial Inspectorate shall be responsible for:

- Inspecting and auditing the use of funds received from the Redundant Labor Support Fund by enterprises, social insurance agencies, and vocational training institutions.

Article 32:

Provincial Departments of Finance and Prices shall be responsible for:

- Reviewing and providing review opinions on training costs in the files of vocational training institutions;

- Assisting the Chairman of the People's Committee of the province or centrally-administered city in reviewing the application files for funding support from the Redundant Labor Support Fund of enterprises established by localities.

 

FORM NO. 01

Issued together with Decision No. 85/2002/QD-BTC
dated July 1, 2002, by the Minister of Finance

Name of the competent state agency: Name of the enterprise: Account Number: Bank: Number:...

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ..., day..., month..., year...

APPLICATION FOR ALLOCATION OF FUNDS

Respectfully submitted to: Redundant Labor Support Fund for Enterprise Restructuring

(Enterprise Financial Department - No. 4, Hang Gai Alley 1,
Hang Gai Street, Hanoi)

Based on Decision No....dated...regarding the restructuring of state-owned enterprises (or joint-stock companies), we request the Redundant Labor Support Fund for Enterprise Restructuring to allocate funds to the enterprise and social insurance agency to resolve the benefits for redundant workers in accordance with the current regulations of the State, specifically as follows:

1.- Total budget estimate of funds allocated from the Fund to the enterprise:... thousand VND:

- Budget estimate of funds for payment to workers retiring early: ... thousand VND;

- Budget estimate of funds for payment to workers under indefinite-term contracts who lost their jobs: ... thousand VND;

- Budget estimate of funds for payment to workers under fixed-term contracts of 1-3 years who lost their jobs: ... thousand VND;

- Budget estimate of funds from the Fund to cover the shortfall for payment to workers who lost their jobs due to the enterprise's responsibility: ... thousand VND;

2. Total budget estimate of funds allocated from the Fund to the social insurance agency:... thousand VND:

- Budget estimate of funds for payment to workers reaching retirement age but lacking up to one year of social insurance contributions: ... thousand VND;

REVIEW OPINION OF THE COMPETENT STATE AGENCY

ENTERPRISE DIRECTOR (signature, full name, stamp)