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THE GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom Happiness
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No: 92-CP
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Hanoi, December 19, 1995
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DECREE
ON ENSURING THE INTERESTS OF LABORERS AT THE BUSINESSES
WHICH ARE DECLARED BANKRUPT
THE GOVERNMENT
Pursuant to the Law
on Organization of the Government of September 30, 1992;
Pursuant to the Bankruptcy Law of December 30, 1993;
Pursuant to the Labor Code of June 23, 1994;
At the proposal of the Minister of Labor, War Invalids and Social Affairs,
DECREES:
Article 1.- The Decree applies to the laborers at those businesses
which have been declared bankrupt by the Economic Tribunal of the provincial
People's Court.
Article 2.- The laborers at a business which is declared bankrupt
shall be paid the following sums which the business owes them:
1. Wages: wages and
allowances (if any) after making deductions of advance payments, which the
business still owes them up to the time when the business is declared bankrupt
by the Economic Tribunal of the provincial People's Court.
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3. Severance pay: The
payment for discharge of a laborer which the business has not yet made or not
yet fully made to him/her when the labor contract expires as stipulated in Item
1, Article 42, of the Labor Code, and in Article 10 of Decree No.198-CP of
December 31, 1994 of the Government giving detailed stipulations and guidance
on the implementation of a number of articles of the Labor Code on labor
contracts.
4. Payment of other
benefits according to the collective labor arrangement and labor contract
already signed: the payments agreed to by both sides in the labor contract and
collective labor arrangement which the business has not yet made or not yet
fully made to the laborers.
Article 3.- When a business is declared bankrupt, the laborers shall
receive the severance pay as stipulated in Item 1, Article 42, of the Labor
Code, and this is a debt which the business must clear.
The working time for
calculating the severance pay rate is defined in Point (a) and Point (d) of
Item 3 and Item 5, Article 10, of Decree No.198-CP of December 31, 1994 of the
Government giving detailed stipulations and guidance on the implementation of a
number of articles of the Labor Code on labor contracts.
The rate of wages for
calculating the severance pay is defined in Article 13 of Decree No.197-CP of
December 31, 1994 of the Government giving detailed stipulations and guidance
on the implementation of a number of articles of the Labor Code on wages.
Article 4.-
1. The documents
proving the business's debts to the laborers are vouchers as stipulated in
Point (e), Article 10, of Decree No.189-CP of December 23, 1994 of the
Government giving guidance on the implementation of the Bankruptcy Law.
2. The Social
Insurance Agency shall make vouchers on the sums which the business and the
laborers still owe it and send those vouchers to the Property Liquidation Team.
3. The laborers shall
list the sums which the business owes them; the chief accountant of the
business shall list the sums which the laborers owe the business, and send all
those vouchers to the Property Liquidation Team.
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1. If the value of the
business's remaining property after making deductions for the bankruptcy cost
is enough to settle all debts to the laborers, then the debt to each laborer
shall be fully repaid.
2. If the value of the
business's remaining property after making deductions for the bankruptcy cost
is not enough to settle all debts to the laborers, then the business's debts to
the laborers shall be repaid in the following order of priority:
a/ Wages;
b/ Medical fees for a
laborer victim of a labor accident or suffering from an occupational disease
from the time when he/she is given first aid or emergency intensive care till
he/she recovers from the injuries after receiving medical treatment as
stipulated in Item 2, Article 107, of the Labor Code;
c/ Social insurance
payment;
d/ Compensations or
allowances to a laborer who has lost from 81% or more of his/her working
ability, or to the next of kin of a laborer who dies in a labor accident or of
an occupational disease as stipulated in Item 3, Article 107, of the Labor
Code;
e/ Severance
allowance;
f/ Other payments
stipulated in the collective labor arrangement and labor contract.
Article 6.- When a business is declared bankrupt, the laborer who is
victim of a labor accident or suffers from an occupational disease shall have
the following benefits:
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2. While the
business's remaining property is being liquidated, and the laborer who is
victim of a labor accident or affected by an occupational disease is still
under medical treatment, the Property Liquidation Team shall work with the
staff of the hospital where the laborer is under medical treatment and make an
estimate of fees for his/her medical treatment and of the extent of the
reduction of his/her working ability, and remit the sum as stipulated in Point
(b) and Point (d) of Item 2, Article 5, of this Decree to the bank accounts of
the Labor, War Invalids and Social Affairs Service in the locality where the
main office of the business is based, so that the Service shall pay to the
laborer after his/her medical treatment.
In case the Medical
Examination Council concludes that the laborer has lost 81% or more of his/her
working ability, the Labor, War Invalids and Social Affairs Service shall pay
to him/her according to the stipulations in Item 3, Article 107, of the Labor
Code.
If the sum paid to the
laborer is in excess of what is his/her due under Item 2 of this Article, the
Labor, War Invalids and Social Affairs Service must remit it to the State
budget within 30 days beginning from the date when the Medical Examination
Council makes its conclusion.
Article 7.- When the business is declared bankrupt, those laborers who
are in active military service or who are performing other citizen duties and
are temporarily exempted from carrying out their labor contract or are allowed
by the business to postpone the carrying out of their labor contract shall
receive their severance allowances as stipulated in Article 3 of this Decree.
Article 8.-
1. When the business
is declared bankrupt, the laborer who is held in custody or is under detention
shall be paid 50% of his/her wages according to the labor contract of the month
immediately preceding his/her custody or detention before the date when the
business is declared bankrupt by the Economic Tribunal of the provincial
People's Court.
2. When the authorized
agency concludes that the laborer is not guilty, the Property Liquidation Team
shall pay him/her the following sums:
- The remaining 50% of
his/her wages during the time of custody or detention before the date when the
business is declared bankrupt by the Economic Tribunal of the provincial People's
Court;
- Severance allowances
according to Article 3 of this Decree.
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The Labor, War
Invalids and Social Affairs Service shall pay to the laborer when the
authorized agency concludes that he/she is not guilty. In case the authorized
agency concludes that the laborer is guilty, the Labor, War Invalids and Social
Affairs Service shall remit this sum to the State budget within 30 days after
the Court gives its ruling.
Article 9.- The Property Liquidation Team shall have to directly pay a
lump sum to the laborer for all the debts as stipulated in this Decree. With
regard to the debt for social insurance, the Property Liquidation Team shall
remit it to the bank accounts of the Social Insurance Agency as stipulated in
Article 36 of Decree No.189-CP on December 23, 1994 of the Government giving
guidance on the implementation of the Bankruptcy Law.
Article 10.- The Social Insurance Agency to which the business pays
social insurance premiums shall have to attend to the social insurance benefits
of the laborers as provided for by the Regulations on Social Insurance.
Article 11.- The Labor, War Invalids and Social Affairs Service and the
Federation of Labor of the province or city directly under the Central
Government where the business bases its main office shall have to follow, check
and supervise the assurance of benefits of the laborers as stipulated by law.
Article 12.- This Decree takes effect from the date of its issue.
Article 13.- The Ministers, the Heads of ministerial-level agencies,
the Heads of the agencies attached to the Government, and the Presidents of the
People's Committees of the provinces and cities directly under the Central
Government shall have to implement this Decree.
ON BEHALF OF THE GOVERNMENT,
THE PRIME MINISTER,
Vo Van Kiet
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