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GOVERNMENT
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SOCIALIST REPUBLIC
OF VIETNAM
Independence - Freedom - Happiness
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No. 108/2014/ND-CP
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Hanoi, November
20, 2014
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DECREE
ON
DOWNSIZING POLICIES
Pursuant to the Law on Government Organization
dated December 25, 2001;
Pursuant to Law on Social Insurance dated June
29, 2006;
Pursuant to the Law Officials and Public
employees dated December 13, 2008;
Pursuant to the Law on Civil Servants dated
December 13, 2008;
At request of the Minister of Home Affairs;
The Government issues this Decree providing the
downsizing policies.
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GENERAL PROVISIONS
Article 1. Scope
This Decree applies to the following entities:
1. Authorities and
organizations affiliated to the Government and Communist Party of Vietnam,
socio-political organizations in all levels;
2. Public service providers of
the Government and Communist Party;
3. Associations granted
payrolls and funding by the State budget;
4. State-owned single member
limited liability companies or political organizations or socio-political
organizations ( hereinafter referred to as “single member limited liability
company”) that are converted from State-owned companies or affiliates of
political organizations or socio-political organizations and are authorized to
reorganize by privatizing, transferring, selling, dissolving, merging,
amalgamating, dividing, bankrupting or converting into two member limited
liability companies or public service providers by competent authorities.
5. Joint-stock companies with
State contributions that are completely sold by competent authorities.
6. State farms and plantations
reorganized under provisions of laws.
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1. Officials in all levels;
2. Public employees working
for public service providers;
3. Employees working under
permanent employment contract (hereinafter
referred to as permanent employees) stipulated in the Decree No.
68/2000/ND-CP on employments contracts for a number of posts in State
administrative agencies and public services providers dated November 17, 2000
of the Government, and other applicable laws.
4. Chairman of companies,
Board members, Directors General, Deputy Directors General, Directors, Deputy
Directors, Chief accountants, controllers of
single member limited liability companies (excluding Directors General,
Deputy Directors General and Chief Accountants having employment contracts).
5. Officials appointed as
authorized representatives of the state contributions at State-owned
enterprises.
6. Employees of associations
under payrolls granted competent state authorities.
Article 3. Interpretation
1. For the purpose of this
Decree, terms below shall be construed as follows:
“Payroll": officials and the number of workers working for public service
providers and contractual workers granted by the competent authority under
provision of laws.
2. “Downsizing": a
process of evaluating, classifying and making those failing to satisfy job
requirements redundant, and settle severance packages to laid-off employees.
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1. Ensure the administration
of the Communist Party and the management of the State; uphold the supervisory
role of socio-political organizations and citizens during the downsizing.
2. Examine, reorganize,
evaluate and classify permanent officials and public employees.
3. Commit that the downsizing
is conducted democratically, objectively, openly and transparently and in
accordance with applicable laws.
4. Sufficiently and timely
settle all severance packages to displaced employees under applicable laws.
5. The Heads of organizations
shall be responsible for the downsizing within their jurisdiction.
Article 5. Management of
personnel after downsizing
1. Every agency, organization
and unit shall be entitled to employ 50% of payrolls after downsizing and shall
settle benefits for retirees or resigned workers under provisions of laws; the
remaining payroll shall be considered as a contingent payroll that is used for
the establishment of new organizations or execution new assigned tasks and
shall be managed by the competent authority.
2. Any regulatory body, local government or other agency
failing to execute the downsizing shall balance their total payroll themselves
and shall not be granted additional payrolls as they establish new organization
or execute new tasks assigned by the competent authority.
3. Officials of communes shall
not be governed by clauses 1 and 2 of this Article.
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1. Officials and public
employees under payrolls, and officials of communes receiving salaries from the
State budget or salary budget of the public service providers (hereinafter
referred to as “official and public employee”) shall be subject to the
downsizing if:
a) They are made redundancy due to the
restructuring of organizations or personnel upon requests of the competent
authority of the Communist Party or the State; or the conversion of public
service providers into autonomous ones;
b) They are made redundancy due to the
restructuring of officials, and public employees according to their positions
and failure to offer new jobs;
c) They fail to meet qualifications required for
the in-charge position but the organization is unable to provide additional
training and offer new relevant jobs.
d) Their majors are irrelevant to the current jobs
resulting in poor performance but their organizations are unable to appoint
them to another position.
dd) The performance is recognized as “average but
shortcomings exist” for 02 consecutive years; or their annual performance in
two years is recognized as “average but shortcomings exist” and “poor” but
their organization is unable to offer them new jobs.
e) The performance is recognized as “average” and
”poor” in 02 consecutive years but their organization is unable to offer them
new jobs.
g) The total sick leave is equal to the maximum
leave stipulated in clause 1, Article 23 of the Law on Social Insurance for 02
consecutive years which is certified by medical examination and treatment facilities
and compensated by social insurance firms.
2. Redundancies of permanent
employees of administrative authorities and public services providers that have
yet to grant the autonomy (hereinafter referred to as autonomous public service
providers) due to restructuring.
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4. Redundancies of Chairman of
companies, Board members, Directors General, Deputy Directors General,
Directors, Deputy Directors, Chief accountants , controllers of state-owned
single member limited liability companies due to privatization, transfer, sale,
dissolutions, merger, amalgamation, division, separation, bankruptcy or
conversion into at least two member limited liability companies or public
service provider according to the Decision of competent state authorities;
redundancies of Directors, Deputy Directors, Chief Accountants of State
plantations or farms due to restructuring under the Decree of 170/2004/ND-CP on
restructuring, innovating and developing State forestry plantations dated
September 22, 2004 of the Government.
5. Officials who are appointed
as authorized representatives of the state contributions at State-owned
enterprises finish their tasks but do not appoint to new positions.
6. Employees under payrolls of
associations are on the list of redundancies for restructuring according to
Decisions of competent authorities.
Article 7. People exempt from
downsizing
1. Workers who are on sick
leave certified by the competent medical facilities.
2. Officials, public employees
and workers who are in pregnancy, on maternity leaves or have babies under 36
months.
3. Workers during their
disciplinary probation or criminal prosecution.
Chapter II
DOWNSIZING POLICIES
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1. Displaced employees
stipulated in Article 6 hereof being 50 years old to 53 years old (for men) and
45 years old to 48 years old (for women), paying social insurance premiums for
at least 20 years and working in heavy, dangerous or hazardous industries on
the list jointly released by the Ministry of Labor, War Invalids and Social
Affairs and Ministry of Health for at least 15 years; or working for in areas
having region-based allowances of at least 0.7 for at least 15 years shall
benefit from the following welfares, besides pension policies under laws on
social insurance:
a) Do not have pensions deducted;
b) Receive 03-month salary for each early
retirement year
c) Receive 05-month salary for the first 02 working
years with full social insurance premiums. From the 21st working
years onwards, each working years with social insurance premiums paid shall be
granted a half of 01-month salary.
2. Displaced employees stipulated in Article 6 hereof
being from 55 years old to 58 years old (for men) and 50 years old to 53 years
old (for women), paying social insurance premiums for at least 20 years shall
get their pensions under laws on health insurance and welfares prescribed in
points a and c, clause 1 hereof, and shall be granted 03-month salary for each
early retirement years.
3. Displaced employees stipulated in Article 6 hereof
being from 53 years to 55 years old (for men) and 48 years old to 50 years old
(for women), and paying social insurance premiums for at least 20 years and
working in heavy, dangerous or hazardous industries on the list jointly
released by the Ministry of Labor, War Invalids and Social Affairs and Ministry
of Health for at least 15 years; or working for in areas having region-based
allowances of at least 0.7 for at least 15 years shall be granted pensions
under laws on social insurance and shall not have pensions deducted.
4. Displaced employees stipulated in Article 6 hereof
being from 58 years to 60 years old (for men) and 53 years old to 55 years old
(for women), paying social insurance premiums for at least 20 years shall be
granted pensions under laws on social insurance and shall not have pensions
deducted.
Article 9. Labor transfer to
organizations unfunded by the State budget
1. Displaced employees
specified in Article 5 hereof working for organizations that are not funded by
the State budget shall receive the following allowances:
a) The current 03-month salary;
b) 1/2-month salary for the each working years with
full social insurance premiums
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Article 10. Resignation
policies
1. Immediate resignation:
If employees stipulated in Article 6 hereof being under 53 years (for men)
or under 53 years old (for women) and ineligible for early retirement under
clause 1, Article8 hereof voluntarily resign, they shall receive the following
allowances:
a) An assistance equal to the current salary of 03
working months;
b) 1/5-month salary for the each working years with
full social insurance premiums
2. Resignation after
vocational training
Employees specified in Article hereof who are under
46 years old, disciplined, healthy, responsible and take charge of positions
irrelevant to their qualifications wishing to resign their jobs, they are
provided vocational training and receive the following allowances:
a) The full current monthly salary and still be
paid social insurance and health insurance premiums during the vocational
training for maximum 06 months;
b) An allowance equal to 06-month salary;
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d) A half of monthly salary for the each working
years with full social insurance premiums;
The vocation training duration is recognized as
working period but it is not included in the seniority.
3. Employees specified in clauses
1 and 2 of this Article have their duration of social insurance premium payment
reserved and receive their social insurance benefits in once under laws on
social insurance ; and do not benefit from resignation policies under the
Decree No. 46/2010/ND-CP on resignation and procedures for retirement of
officials dated April 27, 2010 of the Government and the Decree No.
29/2012/ND-CP on recruitment, employment and management of public employees
dated April 12, 2012 of the Government.
Article 11. Benefits to former
directors or those transferred to lower-ranks with lower allowances
Officials or public employees who are no longer
directors or transferred to lower-ranks with lower allowances shall receive the
higher allowances to the end of the term for such appointed position. Those
their remaining term of the newly appointed posts is under 06 months shall have
their higher allowance reserved for 06 months.
Article 12. Allowance
calculation methodologies
1. For this Decree, monthly
salary includes: rank-based salary or position-based salary or schedule of
salary; allowances for positions, extra-seniority or occupational seniority (if
any) and differences in reserved allowances (if any) under applicable laws.
2. The monthly salary for
calculating allowances specified in Article 8; point b, clause 1 of Article 9;
point b of clause 1 , and point d of clause 2, Article 10 hereof shall be the
average net monthly salary of the last 5 working years prior to the downsizing.
For those work for under 05 years, their monthly salary for calculating
allowances shall be the net monthly salary of the whole working duration.
3. Where the displaced
employee receiving allowances is rehired by administrative authorities agencies
or public services providers funded by the State budget or salary budget of
public services providers, such displaced employee must refund the received
allowances (except for tuition fees for vocational training regulated in point
b, clause 2, Article 10 hereof). Where displaced employees specified in clause
4, article 6 hereof are rehired by State-owned enterprises or privatized State
authorities, such displaced employees shall refund all received severance
packages.
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Article 13. Funding for
downsizing
1. The funding for downsizing
employees specified in clauses 1 and 2 of Article 6 hereof shall be granted by
the State budget, excluding those stipulated in clause 2 of this Article.
2. The funding for the downsizing
of employees who are recruited from October 29, 2003 onwards by public services
providers and subject to the downsizing as stipulated in points c and d clause
1, Article 6 hereof shall be provided by the regular funding of such providers.
3. The funding for employees
stipulated clauses 3 and 6, Article 6 hereof shall be provided by the regular
funding of public services providers or associations.
4. The funding for the
downsizing of employees stipulated clauses 4 and 5, Article 6 hereof shall be
provided by funds for enterprise restructure under applicable laws.
Chapter III
PROCEDURES AND TIME
LIMITS FOR DOWNSIZINGS
Article 14. Downsizing
procedures
1. Heads of authorities,
organization and units shall cooperate with the same-level Communist Party’s
Committees, Trade Union and socio-political organizations to execute the
downsizing policy as follows:
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b) Submit downsizing proposals according to the
procedures specified in Article 15 hereof the competent authority.
c) Submit downsizing checklists and estimates of
the severance package for each displaced employee every 06 months based on the
approved proposal to the competent authority.
2. Ministries,
ministerial-level agencies and Governmental agencies, non-public services
providers established by the Government or Prime Minister and People’s
Committees of provinces (hereinafter referred to as Ministries, regulatory
authorities and local governments) shall:
a) Direct and instruct their affiliates or members
to execute this Decree;
b) Consider approving downsizing proposals submitted
by their affiliates or members;
c) Consider approving downsizing checklists and
budget estimates for every 06 months.
d) Submit downsizing checklists and budget
estimates to the Ministry of Home Affairs and Ministry of Finance.
3. The Ministry of Home
Affairs shall verify employees subject to downsizing and submit verification
results to the Ministry of Finance.
4. The Ministry of Finance
shall verify the estimates of the severance packages, budgets for downsizing
and the grant of funding for downsizing.
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Article 15. Procedures for
formulation of downsizing proposals
1. Examine functions and tasks
to identify inappropriate tasks and overlapping tasks that should be
transferred to other authorities; or tasks needing transferring to
subordinates, local governments and public services providers or enterprises.
2. Restructure organizations,
reform working rules and administrative procedures, and reduce intermediaries.
3. Restructures officials,
public employees and labor contracts as follows:
a) Determine positions, official ranks, public
employee’s job titles and professional criteria and required qualifications for
each specific position;
b) Evaluate, classify officials, public employees
and officials according to criteria and professions (for officials) and job
titles (for public employees);
c) Retain qualified officials and public employees;
d) Indentify and make lists officials and public
employees or permanent employees under the downsizing.
Article 16. Time limits for
submission of downsizing checklists
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2. Ministries, regulatory
bodies, and local governments shall submit their downsizing checklists and
budget estimates for the last- 06-month downsizing to the Ministry of Home
Affairs and Ministry of Finance by May 01st every year.
3. Any Ministry, regulatory
body, and local government failing to submit their downsizing checklists after
November 01st of the year preceding the downsizing year or after may
01st every year as prescribed in clauses 1 and 2 of this Article
shall not be allowed to implement the downsizing policy.
Chapter IV
RESPONSIBILITIES FOR
DOWNSIZING
Article 17. Responsibilities
of heads of supervisory authorities
1. Reduce payrolls in
accordance with procedures stipulated in Article 14 hereof; instruct superior
authorities and cooperate with the same-level trade unions to submit their
downsizing proposals to the State competent authority.
2. Request the competent
authority to consider approving the downsizing proposals, checklists and
funding for downsizing for every 06 months.
3. Publish the downsizing
proposals and downsizing checklists and implement the downsizing policy in
accordance with pro-democracy regulations.
Article 18.Responsibilities of
Ministers, Heads of ministerial-level agencies and Governmental agencies, Heads
of non-public services provider established by the Government or the Prime
Minister
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2. Direct and instruct their
affiliates or members to execute this Decree.
3. Direct heads of affiliates
and members to establish downsizing proposals, to make downsizing checklists
and estimates budget for downsizing for every 06 months.
4. Consider approving the
downsizing proposal or downsizing checklist within15 working days from the date
of receipt of the downsizing statement and proposal, or the downsizing
statement and downsizing checklist from their affiliates.
5. Direct the same-level
Department of Personnel and Organization and financial institutions to appraise
downsizing checklists and submit downsizing budget estimates to the Ministry of
Home Affairs and Ministry of Finance every 06 months.
6. Settle all severance
packages for displaced employees within 15 working days from the date of
receipt of the funding for downsizings from the Ministry of Finance. Submit
funding statements to the Ministry of Finance.
7. Aggregate downsizing
results and submit downsizing progress reports to the Ministry of Home Affairs
and Ministry of Finance.
Article 19. Responsibilities
of Presidents of the People’s Committees of provinces
1. Execute the downsizing
policy in accordance with the procedure stipulated in Article 14 hereof.
2. Direct and instruct
regulatory bodies and People’s Committees of provinces, districts and communes,
and public service providers affiliated to the provinces or associations
operating within the provinces to execute this Decree.
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4. Consider approving the
downsizing proposal or downsizing checklist within15 working days from the date
of receipt of the downsizing statement and proposal, or the downsizing
statement and downsizing checklist from their affiliates.
5. Direct Departments of Home
Affairs and Departments of Finance to appraise downsizing checklists and submit
their affiliates’ downsizing budget estimates and the local government’s
downsizing checklists and budget estimates to the Ministry of Home Affairs and
Ministry of Finance every 06 months.
6. Settle all severance
packages for displaced employees of their local governments within 15 working
days from the date of receipt of the funding for downsizings from the Ministry
of Finance. Submit the funding statements to the Ministry of Finance.
7. Aggregate downsizing
results and annually submit reports on downsizing progress of their local
governments to the Ministry of Home Affairs and Ministry of Finance on December
31st every year.
Article 20. Responsibilities
the Ministry of Home Affairs
1. Take charge of and
cooperate with the Ministry of Finance to provide guidelines for executing the
Decree.
2. Expedite and inspect the
implementation of the downsizing policy under provisions hereof.
3. Verify employees subject to
the downsizing based on the payoff list submitted by Ministries, regulatory
authorities and local governments and submit a written report as the basis for
the grant of funding for downsizing within 15 working days from the date of
receipt of the valid downsizing statement and payoff lists.
4. Submit the downsizing
progress report to the Prime Minister on February 15th every year.
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Article 21. Responsibilities
the Ministry of Finance
1. Cooperate with the Ministry
of Home Affairs to provide guidelines for executing the Decree.
2. Submit the plan for funding
allocations for the execution of this Decree to the competent authorities.
3. Verify severance package
estimates, downsizing budget estimates and the plan for granting funding to
Ministries, regulatory authorities and local governments within 15 working days
from the date of receipt of the downsizing statement, downsizing checklists and
written notice of the downsizing from the Ministry of Home Affairs.
Article 22. Responsibilities
Vietnam social insurance
Vietnam social insurance shall provide professional
training and direct the social insurance of provinces to:
1. Collect social insurance
premiums under provisions hereof
2. Settle all social insurance
benefits to officials, and public employees under provisions hereof
Chapter V
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Article 23.Complaining,
denunciating and redressing
1. Every entity discovering
violations of downsizing against this Decree shall have the right and
obligation to denounce such violations to the State competent authority under
applicable laws.
2. Heads of authorities or
responsible units shall take charge of executing downsizings within their
assigned competence and in accordance with applicable laws.
3. The downsizing results
shall be considered as one of criteria for evaluating the annual performances
of heads of agencies, organizations and units.
Article 24. Entry into force
This Decree enters into forces from January 10,
2015. Severance packages and benefits promulgated hereof shall be valid to the
end of 2021.
Article 25. Responsibilities
for implementation
1. The Central Organization
Commission, Office of the National Assembly, Office of the President, Supreme
People’s Court, Supreme People’s Procuracy and State Audit Office of Vietnam
shall instruct authorities and units within their administration to execute the
downsizing policy in accordance with this Decree.
2. Ministers, Heads of
ministerial-level agencies and Governmental agencies , Heads of Governmental
agencies, Heads of non-public services provider established by the Government
or Prime Minister and President of the People’s Committees of provinces shall
be responsible for the implementation of this Decree./.
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FOR THE PRIME
MINISTER
Nguyen Tan Dung