Decision No. 85/2002/QD-BTC Issuing the Regulation on Management and Use of the Fund for Supporting Redundant Labor due to Reorganization of State-Owned Enterprises

REGULATIONếd.1. Amount of taxable income in Vietnam: DECREE

Issuing the Regulation on Management and Use

of the Fund for Supporting Redundant Labor Resulting from the Reorganization of State-Owned Enterprises dated March 2, 1993 by the Government stipulating the tasks, powers, and responsibilities of state management of Ministries and agencies at the ministerial level;

 

THE MINISTER OF FINANCE

Pursuant to Decree No. 15/CP dated October 28, 1994 by the Government stipulating the tasks, powers, and organizational structure of the Ministry

Pursuant to Decree No. 21/2002/NĐ-CP dated February 28, 2002 of the Government on the issuance of the List of Goods and Tax Rates of Vietnam for the implementation of the ASEAN Common Effective Preferential Tariff (CEPT) Agreement 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; Article 3. Method of submitting reports by credit rating service enterprises

Based on the proposal of the Director of the Department of Financial Policy, the Director of the Enterprise Finance Department.

This Decision hereby promulgates the Regulation on Management and Use of the Fund for Supporting Redundant Labor Resulting from the Reorganization of State-Owned Enterprises.

 

DECISION:

Article 1:The Director of the Enterprise Finance Department is authorized to be the account holder and manage the Fund for Supporting Redundant Labor Resulting from the Reorganization of State-Owned Enterprises.

Article 2.This Decision shall take effect from April 26, 2002 until December 31, 2005.

Article 3.Ministers, heads of agencies at the ministerial level, heads of agencies under the Government, Chairmen of the Boards of Directors of the 91 State Corporations, units within the financial system, State Treasury, and organizations and individuals related thereto are responsible for implementing this Decision./.

Management and use of the Fund for Supporting

REGULATIONS

Redundant Labor Resulting from the Reorganization of State-Owned Enterprises (issued together with Decision No. 85/2002/QĐ-BTC dated July 1, 2002 of the Ministry of Finance) Ministry of Science and Technology I. GENERAL PROVISIONS

 

The Fund for Supporting Redundant Labor Resulting from the Reorganization of State-Owned Enterprises (hereinafter referred to as the Support Fund) is established to support workers who lose their jobs or retire early (hereinafter referred to as redundant labor) due to the restructuring of state-owned enterprises as provided for in 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 (hereinafter referred to as Decree No. 41/2002/NĐ-CP). REGULATION GENERAL PROVISIONS

Article 1.The Support Fund provides funding to state-owned enterprises subject to restructuring measures according to the government's plan, joint-stock companies converted from state-owned enterprises with restructuring plans confirmed by competent authorities within twelve months from the date of issuance of the business registration certificate under the Law on Enterprises (hereinafter referred to as joint-stock companies), organizations established to resolve redundant labor in state-owned enterprises that have been dissolved or declared bankrupt (hereinafter collectively referred to as enterprises), social insurance agencies, vocational training centers for redundant labor.

The Support Fund has its headquarters at the Ministry of Finance (Enterprise Finance Department - No. 4, Hang Chau Alley 1, Hang Chau Street, Hanoi) and opens an account at the Central State Treasury to receive and utilize funds as prescribed in this Regulation.

Article 2.The sources of the Support Fund include:

Article 3.State budget;

Assistance from organizations and individuals;

Other sources (if any).

The Support Fund is responsible for providing funding to the correct recipients, for the intended purposes, transparently, and publicly. The Support Fund only provides funding once per enterprise and once per worker.

Article 4. II. CONTENT OF SUPPORT FROM THE FUND FOR SUPPORTING REDUNDANT LABOR

The Support Fund implements support for redundant labor as stipulated 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. For enterprises experiencing financial difficulties after using up the balance of the Enterprise Reserve Fund for Unemployment Allowances (fully established in accordance with the regulations of the State) and still lacking sufficient resources to pay unemployment allowances to workers losing their jobs under the responsibility of the enterprise as stipulated in point a Clause 3 Article 8, Clause 1 Article 4 of Decree No. 41/2002/NĐ-CP, the Support Fund will provide additional support for the shortfall.

Article 5. For state-owned enterprises that have been dissolved or declared bankrupt, the Support Fund will provide full funding to settle the benefits under the responsibility of the enterprise for redundant labor recruited before April 26, 2002.

Article 6.Workers who have received support from the Support Fund and are subsequently re-employed by the enterprise that previously terminated their employment, or by another state-owned enterprise, must comply with the provisions of point a Part II Circular No. 11/2002/TT-BLĐTBXH 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-BLĐTBXH).

The enterprise hiring the worker is responsible for recovering the unemployment allowance paid to the worker and depositing it into the Support Fund's account at the Central State Treasury immediately upon signing the labor contract. At the same time, they must inform the Support Fund about the recovery and deposit of the funds into the Support Fund's account.

Article 7.Enterprises and individual workers must bear legal responsibility if they violate the provisions of this Article.

PROCEDURES FOR APPLYING FOR FUNDS FROM THE FUND FOR SUPPORTING REDUNDANT LABOR

A. APPLICATION FOR FUNDS FROM THE FUND FOR SUPPORTING REDUNDANT LABOR BY ENTERPRISES

III. After completing the procedures specified in item c2 point 1 Part IV Circular No. 11/2002/TT-BLĐTBXH, the enterprise prepares the application dossier for the Support Fund to consider providing funding to the enterprise, including:

Request for allocation of funds (Form No. 1 of this Regulation)*;

Article 8.Financial report of the enterprise at the time of reorganization and two consecutive years prior;

Labor reorganization plan approved or confirmed by the Ministry, agency at the ministerial level, agency under the Government, People's Committee of provinces and centrally-administered cities, Board of Directors of the 91 State Corporation (collectively referred to as competent state authority) including Forms No. 1, 2, 3, 4, 5 as prescribed in Circular No. 11/2002/TT-BLĐTBXH. For state-owned enterprises undergoing dissolution or bankruptcy, this includes the decision on dissolution or declaration of bankruptcy of the state-owned enterprise.

Financial report of the enterprise at the time of restructuring and for two consecutive years prior to that time;

Labor restructuring plan approved or confirmed by the Ministry, ministerial-level agency, agency under the Government, People's Committee of provinces and centrally governed cities, Board of Directors of State-owned Joint Stock Company 91 (collectively referred to as the competent state authority), including Forms No. 1, 2, 3, 4, and 5 as prescribed in Circular No. 11/2002/TT-BLDTBXH. For state-owned enterprises undergoing dissolution or bankruptcy, it is the decision on dissolution or declaration of bankruptcy of the state-owned enterprise;

The list of surplus workers and the budget for payment of benefits to surplus workers according to the groups of policies stipulated in Decree No. 41/2002/NĐ-CP are reflected in Forms No. 7, 8, 9, 10 prescribed in Circular No. 11/2002/TT-BLDTBXH.

The aforementioned Forms No. 7, 8, 9, 10 must be reviewed or confirmed by the competent state agency for joint-stock companies.

Specifically, Form No. 8 on the list of workers who have reached retirement age under current regulations but still lack up to one year of social insurance contributions and the budget for social insurance payments must also be confirmed by the social insurance agency where the enterprise participates in social insurance, which shall record the account number and location of the social insurance agency as the basis for disbursing funds from the Surplus 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 reviewing and confirming the dossier. In case of violations, both the enterprise and the competent state agency shall bear legal responsibility.

Article 9.The time point for determining when workers cease work to prepare Forms No. 7, 8, 9, 10 prescribed in Circular No. 11/2002/TT-BLDTBXH is the day the decision to allow surplus workers to cease work takes effect (the date the competent state agency approves the labor adjustment plan plus a maximum of 15 working days), or the date the business registration certificate is issued according to the Law on Enterprises for joint-stock companies, or the effective date of the dissolution decision or bankruptcy declaration decision of the competent authority for state-owned enterprises undergoing dissolution or bankruptcy.

Article 10.The list of surplus workers and the budget for payment of benefits to surplus workers according to the groups of policies stipulated in Decree No. 41/2002/NĐ-CP reflected in Forms No. 7, 8, 9, 10 prescribed in Circular No. 11/2002/TT-BLDTBXH must be publicly announced by the enterprise before submission for review or confirmation so that surplus 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 Surplus Labor Support Fund, the competent state agency, the Ministry of Labor - War Invalids and Social Affairs, the social insurance agency where the enterprise participates in social insurance, the Department of Labor - War 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 Surplus Labor Support Fund will examine, determine the amount of funds to be disbursed, and issue a decision approving the disbursement of funds from the Surplus Labor Support Fund to the enterprise, detailed as follows:

Disburse funds to pay severance benefits to workers retiring early.

Disburse funds to pay severance benefits to workers whose indefinite-term contracts were terminated due to job loss.

Disburse funds to pay severance benefits to workers whose fixed-term contracts of one to three years were terminated due to job loss.

Supplement the remaining funds within the enterprise's responsibility to pay severance benefits.

This decision shall be sent to the enterprise, the competent state agency, the Ministry of Labor - War Invalids and Social Affairs, the State Treasury Central Office, and retained in the enterprise's dossier at the Surplus Labor Support Fund.

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

Article 13.Based on the decision approving the disbursement of funds from the Surplus Labor Support Fund to the enterprise, within five working days, the Surplus Labor Support Fund shall transfer the funds into the enterprise's account to implement the payment of severance benefits to surplus workers.

Article 14.After receiving funds from the Surplus Labor Support Fund, the enterprise shall proceed with the payment of severance benefits to surplus workers as stipulated in Clause d, Point 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. 2 issued together with Decision No. 1141/TC/QĐ-CĐKT dated November 1, 1995 of the Ministry of Finance); and prepare a list of workers receiving benefits (Form No. 2 of this Regulation).

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

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

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

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

List of workers receiving benefits (Form No. 2 of this Regulation), original;

Summary report on the use of funds disbursed from the Surplus Labor Support Fund, detailing each support item listed in the notification of support from the Surplus Labor Support Fund, excess funds and reasons (Form No. 3 of this Regulation);

After obtaining the confirmation opinion of the competent state agency, the enterprise shall send the final report and the report on the implementation of labor adjustment as stipulated in Clause e, Point 1, Part IV of Circular No. 11/2002/TT-BLDTBXH to the Surplus Labor Support Fund.

The enterprise and the competent state agency shall bear legal responsibility for the accuracy and honesty of the final report.

Article 16. For any excess funds disbursed from the Surplus Labor Support Fund to the enterprise upon settlement, within five working days from the date of sending the final report to the Surplus Labor Support Fund, the enterprise must immediately deposit the excess funds into the account of the Surplus Labor Support Fund opened at the State Treasury Central Office.

B. DISBURSEMENT OF FUNDS PHNH PHÓ FROM THE SURPLUS LABOR SUPPORT FUND TO THE SOCIAL INSURANCE AGENCY BASED ONỢ FOR SOCIAL INSURANCE SOCIAL INSURANCE

Article 17.Within ten working days from the date of receipt of the list of workers eligible for retirement according to current regulations but lacking up to one year of social insurance contributions and the budget estimate for social insurance contributions (Form No. 8 of Circular No. 11/2002/TT-BLDTBXH) in the enterprise's file as stipulated in Article 8 of this Regulation, the Fund for Surplus Labor Support shall examine and determine the amount of funds to be allocated to the social insurance agency and issue a decision approving the allocation of funds from the Fund for Surplus Labor Support 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 - War Invalids and Social Affairs, the Central State Treasury, and a copy shall be kept in the enterprise file of the Fund for Surplus Labor Support.

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 Support 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 Support to the social insurance agency, within five working days, the Fund for Surplus Labor Support shall transfer the funds into the account of the social insurance agency.

Article 19.Upon receiving the funds transferred from the Fund for Surplus Labor Support, within ten working days, the social insurance agency shall confirm that the worker has made sufficient social insurance contributions and transfer the surplus worker to enjoy the pension benefits as prescribed under current social insurance regulations.

Within five working days from the completion of transferring the surplus worker to enjoy pension benefits, the social insurance agency must report the results of using the funds from the Fund for Surplus Labor Support (Form No. 4 of this Regulation)* to the Fund for Surplus Labor Support.

C. ALLOCATION OF FUNDS FROM THE FUND FOR SURPLUS LABOR SUPPORT TO VOCATIONAL TRAINING INSTITUTIONS

Article 20.Quarterly, vocational training institutions designated to train surplus labor shall be responsible for preparing and submitting to the Fund for Surplus Labor Support an application for payment of training costs (Form No. 5 of this Regulation)*, along with original Free Training Certificates and copies of decisions on retirement benefits for surplus labor due to restructuring of state-owned enterprises of surplus workers trained at the institution during the quarter.

The application for payment of training costs must be reviewed by the Department of Labor - War 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 training cost, which shall not exceed 350,000 VND per person per month.

The Department of Labor - War Invalids and Social Affairs and the Department of Finance and Prices shall 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 Support shall check, determine the amount of funds to be allocated, and issue a decision approving the allocation of funds from the Fund for Surplus Labor Support to the vocational training institution.

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

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 Support shall notify the vocational training institution, the Department of Labor - War 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 Support to the vocational training institution, within five working days, the Fund for Surplus Labor Support shall transfer the funds into the account of the vocational training institution.

IV. ESTABLISHING THE FUND'S SOURCE PLAN TO SUPPORT SURPLUS LABOR

Article 23.Annually, the Fund for Surplus Labor Support shall establish a plan for mobilizing and utilizing the Fund's resources in conjunction with the time of establishing 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 Support shall be based on the following grounds:

The program for restructuring state-owned enterprises according to the Government's plan;

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

The ability to mobilize funds from sources specified in Article 3 of this Regulation for the activities of the Fund for Surplus Labor Support.

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

Article 25. At the same time as establishing the annual state budget estimate, the competent state agency and the General Company 91 shall be responsible for compiling and submitting to the Fund for Surplus Labor Support, and simultaneously sending to the Ministry of Labor - War Invalids and Social Affairs, plans for reorganizing labor and the need to pay allowances to surplus labor for the next year.

The plan sent by the competent state agency to the Fund for Surplus Labor Support shall include the following contents: the estimated number of surplus labor and the amount of support funds from the Fund for Surplus Labor Support for each enterprise (Form No. 6 of this Regulation)*.

In cases where the competent state agency does not send plans for reorganizing labor and the need to pay allowances to surplus labor to the Fund for Surplus Labor Support, it shall be deemed that there is no need for funds to be allocated from the Fund for Surplus Labor Support and such will not be included in the source plan. The Fund for Surplus Labor Support:

V. RECORDS AND REPORTING SYSTEM BOOKS AND REPORTS

Article 26.The Fund for Surplus Labor Support shall have the responsibility to maintain records to monitor the mobilization and utilization of the Fund for Surplus Labor Support and implement 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 following the end of each quarter, the Fund for Redundant Labor Support shall be responsible for reporting to the Minister of Finance on the progress of implementing the plan for mobilizing and utilizing the fund for redundant labor support in the previous quarter.

At the latest not exceeding forty-five days after the end of the fiscal year, the Fund for Redundant Labor Support must complete 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 Fund for Redundant Labor Support during the year, including: the opening balance of the fund, the amount of funds mobilized during the year, the amount of funds utilized during the year, the closing balance of the fund accompanied by confirmation of the account balance at the Central Treasury; the number of redundant workers who have received assistance from the Fund for Redundant Labor Support and the total expenses paid, summarized by each competent state agency, detailed according to each type of support provided by the Fund for Redundant Labor Support, and detailed by each quarter.

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

Article 29.Enterprises receiving funding from the Fund for Redundant Labor Support shall be responsible for submitting financial reports for two consecutive years following the completion of enterprise restructuring to the Fund for Redundant Labor Support to serve the assessment of the effectiveness of the Fund for Redundant Labor Support.

VI. IMPLEMENTATION

Article 30. Competent state agencies, 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 Department of Corporate Finance shall be responsible for: Preparing the plan for the Fund for Redundant Labor Support and reporting to the Minister of Finance for submission to the Prime Minister.

Receiving, examining files submitted by enterprises and vocational training institutions, and issuing decisions to approve funding from the Fund for Redundant Labor Support for enterprises, social insurance agencies, and vocational training institutions in accordance with the deadlines stipulated in this Regulation.

Notifying enterprises, social insurance agencies, and vocational training institutions in writing about deficiencies in their files that do not meet the requirements set forth in this Regulation.

Auditing and settling the amount of funding approved for enterprises, social insurance agencies, and vocational training institutions.

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

2. The Central Treasury shall be responsible for:

Disbursing funding to enterprises, social insurance agencies, and vocational training institutions.

Implementing treasury control over the use of funding by enterprises, social insurance agencies, and vocational training institutions in accordance with the approved funding decisions from the Fund for Redundant Labor Support.

3. The Financial Inspectorate shall be responsible for: Inspecting and auditing the use of funding received from the Fund for Redundant Labor Support by enterprises, social insurance agencies, and vocational training institutions.

Article 32. Provincial Departments of Finance and Prices shall be responsible for:

Examining and providing comments on the training costs in the files of vocational training institutions;

Assisting the Chairman of the People's Committee of the province or centrally governed city in examining applications for funding support from the Fund for Redundant Labor Support submitted by enterprises established by localities.