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THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
72-CP
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Hanoi,
October 31, 1995
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DECREE
STIPULATING DETAILED PROVISIONS AND GUIDANCE FOR THE
IMPLEMENTATION OF A NUMBER OF ARTICLES ON EMPLOYMENT IN THE LABOR CODE
THE GOVERNMENT
Pursuant to the Law on
Organization of the Government of September 30, 1992;
Proceeding from the Labor Code of June 23, 1994;
At the proposal of the Minister of Labor, War Invalids and Social Affairs,
DECREES:
Chapter I
EMPLOYMENT PROGRAM
Article 1.-
The employment program as provided for in Item 1, Article 15, of the Labor Code
comprises: The objectives, targets of new employment, policies, resources,
organizational system and measures to ensure the realization of the program.
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Article 2.-
1. The
target of new employment as stipulated in Article 14 of the Labor Code is the
new labor force that needs to be recruited to add to the permanent labor force
employed by organizations, units and individuals of all economic sectors,
arising from the needs created by a new establishment or expansion of
production scale and activities or by labor rearrangement.
2. In the annual and five-year
plans for socio-economic development of all levels and branches, the
program-objective sections must include new employment targets.
Article 3.-
The Ministry of Labor, War Invalids and Social Affairs shall study the plan for
designing and implementing the national employment program and submit it to the
Prime Minister for approval.
Article 4.-
The State Planning Committee shall preside over and consult the Ministry of
Labor, War Invalids and Social Affairs and the concerned Ministries and
branches to design the targets for new employment in the annual and five-year
plans and submit them to the Government for approval.
The Ministry of Labor, War
Invalids and Social Affairs is responsible for providing guidance and
inspection and shall report to the Government the result of the realization of
the annual and five-year targets of new employment.
Article 5.-
1.
Annually, the Ministry of Labor, War Invalids and Social Affairs shall preside
over and consult the State Planning Committee, the Ministry of Finance and the
other concerned Ministries and branches to plan the implementation of the
national employment program and the national fund for employment so that the
Government may submit it to the National Assembly for approval at the year-end
session of the National Assembly.
2. The Ministry of Labor, War
Invalids and Social Affairs is responsible for organizing and inspecting the
implementation of the national employment program and shall report the result
to the Government.
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1. The
national fund for employment as stipulated in Item 1, Article 15, of the Labor
Code, is formed from the following sources:
a) Allocations from the annual
State budget;
b) Sources outside the State
budget, which include: assistance from foreign countries, international
organizations and foreign individuals; from domestic units and individuals that
are willing to assist the employment problem.
2. The national fund for
employment is used for the following purposes:
a) To assist job-placement
organizations;
b) To assist units which are
meeting temporary difficulties with a view to helping a good number of
employees to keep their jobs;
c) To assist units which take on
unemployed laborers at the proposal of the local office of Labor, War Invalids
and Social Affairs;
d) To provide soft loans to
assist the employment of a number of people who are beneficiaries of social
welfare policies as provided for by the Ministry of Labor, War Invalids and
Social Affairs;
e) To assist the fund for
employment of disabled people.
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4. The Ministry of Labor, War
Invalids and Social Affairs shall organize the implementation of the regulation
on management of the national fund for employment.
Article 7.-
1.
Annually, the People's Committees of the provinces and cities directly under
the Central Government shall design the programs and funds for employment of
the localities, submit them to the People's Councils of the same level for
decision, and organize their implementation; and at the same time report the
results to the Ministry of Labor, War Invalids and Social Affairs, the State
Planning Committee and the Ministry of Finance.
2. The People's Committees of
the provinces and cities directly under the Central Government shall set the
guideline, support and inspect the employment programs of district and commune
levels.
3. The funds for employment of
the provinces and cities directly under the Central Government are formed from
the following sources:
a) Allocations from the local
budget to be decided by the People's Councils of the provinces and cities
directly under the Central Government;
b) Allowance from the national
fund for employment;
c) Other sources.
4. The funds for employment of
the provinces and cities directly under the Central Government must be used
strictly for the purposes of the employment programs of the provinces and
cities and in support of the employment programs of the districts. The
Presidents of the People's Committees of the provinces and cities directly
under the Central Government shall direct the provincial services of Labor, War
Invalids and Social Affairs, Planning, Finance and other organizations to carry
out their local employment programs and manage their local funds for
employment.
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Article 9.-
The job placement center is an income-generating non-business social welfare
service established by the State or people's organizations or associations.
Article
10.-
1. The
job placement center has the tasks:
a) To provide consultation for
laborers and employers on labor policies and employment; vocational orientation
and job training;
b) To introduce laborers to work
in places where labor is needed and to learn trade in appropriate places;
c) To supply labor for employers
who are Vietnamese and foreigners operating legally in Vietnam;
d) To provide information on the
labor market for laborers and employers who are Vietnamese and foreigners
operating legally in Vietnam; and for the State management agencies in charge
of labor and employment as stipulated by the Ministry of Labor, War Invalids
and Social Affairs.
2. The job placement center has
the rights:
a) To organize vocational
training in combination with job generation;
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c) To collect fees, tuition and
other charges as provided for by the Ministry of Finance and the Ministry of
Labor, War Invalids and Social Affairs, and in accordance with the detailed
guidance of the People's Committees of the provinces and cities directly under
the Central Government.
Article
11.-
1. The
establishment of the job placement centers in the provinces and cities directly
under the Central Government is decided by the Presidents of the provincial and
municipal People's Committees at the proposal of the Labor, War Invalids and
Social Affairs Service and with the consent of the Ministry of Labor, War
Invalids and Social Affairs.
2. The establishment and
dissolution of the job placement centers of the people's organizations and
associations are decided by the Heads of their organizations at the central
level with the consent of the Ministry of Labor, War Invalids and Social
Affairs.
3. The establishment of the
specific job placement centers at a number of ministries is decided by the
concerned ministers, with the consent of the Ministry of Labor, War Invalids
and Social Affairs.
Article
12.- The dossier for application for establishment of a job placement
center is composed of:
1. An application to establish
the job placement center;
2. The plan for the job
placement center, which must clearly indicate the need, objective, tasks and
conditions for the implementation of the set objectives and tasks.
Article
13.- Within 30 days from the date of the decision for its establishment,
the job placement center shall publish an announcement on local papers in five
consecutive issues, providing the name of the center, its location, telephone
number, bank account, its director, date of establishment, date of operation
and its main fields of activity.
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Article
14.-
1. The
sources for revenue and expenditure of the job placement center include:
a) Revenue:
- Fees, tuition and other
charges;
- Placement contracts from the
State, units and individuals;
- Support from the State;
- Financial support of
organizations and individuals inside and outside the country;
- Other sources.
b) Expenditure:
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- Purchases of materials and
facilities for vocational training;
- Salary and wage for managerial
personnel;
- Other expenditures.
2. The job placement center is
eligible for consideration for tax reduction and exemption in accordance with
the provisions of law.
3. The Ministry of Finance shall
provide guidance on the financial management regime for the job placement
centers in accordance with the State regime for financial management.
Article
15.- The job placement centers which were established prior to the date of
issuance of this Decree must be re-established in accordance with the
provisions of this Decree and the guidance of the Ministry of Labor, War
Invalids and Social Affairs.
Article
16.- The Ministry of Labor, War Invalids and Social Affairs shall provide
the uniform State management as stipulated by Item 3, Article 18, of the Labor
Code, with regard to job placement organizations throughout the country
according to the following contents:
1. To issue the provisions on
organization and operation of the job placement centers;
2. To approve the establishment
of the job placement centers;
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4. To study, design, amend and
supplement provisions and policies regarding the job placement centers.
Article
17.-
1. The
Ministry of Finance shall study and design for submission to the Government the
policies for financial support and tax reduction and exemption to encourage laborers
to seek self-employment and generate employment for many other laborers.
2. The State Bank of Vietnam has
the responsibility to study and design loans schemes to encourage
self-employment among laborers and to generate employment for many laborers.
3. The Ministry of Science,
Technology and Environment shall study and design policies to encourage the
development and application of new technologies and trades in order to generate
employment for many laborers and to encourage self-employment among laborers.
Article
18.- The Committee on Ethnic Minorities and Mountainous Areas shall preside
over and consult the Ministry of Labor, War Invalids and Social Affairs and the
Ministry of Finance on policies of preferential treatment in employment so as
to attract and employ laborers of ethnic minorities.
Chapter II
RECRUITMENT OF LABOR AND
PROVISION OF UNEMPLOYMENT ALLOWANCE DUE TO RESTRUC- TURING OR NEW TECHNOLOGY
Article
19.-
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2. The dossier for job
application comprises: an application for employment and the employment record
as stipulated by the Ministry of Labor, War Invalids and Social Affairs.
In case the laborer has not yet
an employment record, he/she must have a curriculum vitae, a skill certificate
and other related papers as requested by the employer.
Article
20.- In recruiting laborers, the employer has to publicize in full the
conditions for recruitment as well as the rights and responsibilities of both
the employee and employer in the course of employment.
Article
21.- The recruitment of Vietnamese laborers in accordance with the
provision of Item 1, Article 132, of the Labor Code, to work at enterprises which
are established under the Law on Foreign Investment in Vietnam, at export
processing zones, industrial parks, foreign agencies and organizations, or at
international organizations in Vietnam, or to work for individuals who are
foreigners in Vietnam, shall be conducted as follows:
1. Through the selection or
recommendation of a job placement center as provided for in Article 10 of this
Decree, at the request of the interested enterprise, organization or
individual.
The fee for the selection or
recommendation of laborers shall be paid once by the employer at a level to be
agreed upon by the two parties but which shall not exceed:
- 5% of the salary of the first
month as prescribed in the labor contract for each employee recruited through
recommendation.
- 8% of the salary of the first
month as prescribed in the labor contract for each employee recruited through
commission.
The procedure and dossier for
employment shall be defined by the Ministry of Labor, War Invalids and Social
Affairs.
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2. In case the job placement
center files a written statement that it cannot meet the requirements of the
employers in selecting or recommending laborers, the requesting enterprises,
organizations and individuals have the right to recruit laborers directly, but
must notify the Labor, War Invalids and Social Affairs Service.
3. After each recruitment of
employees, the requesting enterprises, organizations and individuals shall
report the results to the Labor, War Invalids and Social Affairs Service.
Article
22.- In January and July every year, the employer shall report to the
Service of Labor, War Invalids and Social Affairs Service at the locality where
he/she maintains the head office on the situation of employment, the need for
additional labor and the implementation of the labor policies. The report shall
be done in the forms issued by the Ministry of Labor, War Invalids and Social
Affairs.
Article
23.- The following cases are referred to as restructuring or renewal of
technology as stipulated in Item 1, Article 17, of the Labor Code:
1. To replace part or all the
old technologies with equipment and machinery of higher productivity;
2. To change a number of or the
whole production process with more advanced and more productive processes;
3. To change products or the
products structure, resulting in a less intensive use of labor;
4. To use advanced technology
which gives higher productivity and quality in replacement of backward
technologies;
5. To change the organizational
structure: Merger or dissolution of a number of sections in the unit.
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Article
24.- The bases for calculating severance allowances are stipulated in Item
1, Article 17, of the Labor Code.
1. The salary level to calculate
severance allowances is defined in Decree No.197-CP of December 31, 1994, of
the Government which provides details and guidance for implementation of a
number of Articles of the Labor Code on wages.
2. The time frame for
calculating the severance allowance is the period in which the employee works
continuously for the employer until the severance.
In case the employee for a
State-run enterprise loses his/her employment as stipulated in Item 1, Article
17, of the Labor Code and Article 25 of this Decree, and he/she had previously
worked in other units of the State sector where no severance allowance had been
granted, that period of employment are also accounted for to calculate the
severance allowance which is equivalent to half the monthly salary for each
year of work. This amount shall be transferred from the old units to the unit
where the employee is working and paid out to him/her. In case the old unit has
been dissolved, the allowance shall be paid by the State budget. The unit where
the employee is working shall pay the severance allowance and shall get refund
from the State budget.
3. The period of work with
spilled-over time:
a) The spilled-over time of less
than a month is not accounted for.
b) A spill over from one month
to less than seven months is taken as six months of work.
c) A spill-over from a full seven
months to 12 months is taken as a year of work.
Article
25.-
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a) People who volunteer to
retire;
b) People who have committed
acts of violation of the labor discipline which are not so serious to be fired;
c) Young and healthy people who
have skills and the capability to find new jobs elsewhere;
d) People under policy
entitlements: Heroes of the Armed Forces, Heroes of Labor, war invalids,
diseased soldiers, people with policy entitlements as a war invalid, dependents
of fallen heroes, people with good records in the wars of resistance and people
with meritorious services to the Revolution.
2. The payment of severance
allowance to the laborers shall be made within seven days at the latest from
the date of the job severance.
3. The severance allowance must
be paid in lump sum to the laborer at the place of work or at a place most
convenient for him/her.
Article
26.- All enterprises shall set up a reserve fund for job severance
allowances as provided for in Item 3, Article 17, of the Labor Code:
a) The source for this reserve
fund for job severance allowances is taken from the remaining profit of the
enterprise after fulfilling all obligations toward the State. The Ministry of
Finance and the Ministry of Labor, War Invalids and Social Affairs shall
provide guidance for the management of this fund.
b) The fund is to be spent on
the following main purposes:
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- To pay for the retraining cost
due to restructuring or renewal of technology; to cover the training of backup
skills for women laborers in the enterprise and to enhance the professional
skills of laborers.
c) The enterprise is responsible
for the management, use and development of the fund in accordance with the
provisions of law.
Chapter
III
IMPLEMENTATION PROVISIONS
Article
27.- This Decree takes effect from the date of its signing. The previous
provisions which are contrary to the Labor Code and this Decree are now
annulled.
Article
28.- The Ministry of Labor, War Invalids and Social Affairs, the State
Planning Committee, the Ministry for Foreign Affairs and the other Ministries
and branches shall, within the scope of their functions, tasks and powers, have
the responsibility to guide the implementation of this Decree.
Article
29.- The Ministers, the Heads of the Agencies at ministerial level and
Agencies ttached to the Government, and the Presidents of the People's
Committees of the provinces and cities directly under the Central Government,
are responsible for the implementation of this Decree.
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