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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:
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b) 1/2-month salary for the each
working years with full social insurance premiums
2. The policy
promulgated in clause 1 hereof shall not apply to employees who are retained as
the public service providers converts into enterprises or privatization; or
displaced employees who are 57 years old or older (for men) and 52 years or
older (for women) paying their social insurance premiums for at least 20 years;
or displaced employees who are 52 years old or older (for men) and 47 years or
older (for women) paying their social insurance premiums for at least 20 year
and working in heavy, dangerous and 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 those working for in areas having
region-based allowances of at least 0.7 or higher .
Article 10.
Resignation policies
1. Immediate
resignation:
Regarding employees who are subject
to downsizing stipulated in Article 6 hereof and are under 53 years old (for
men) or under 48 years old (for women) and ineligible for early retirement
under clause 1, Article 8 hereof voluntarily resign, or under 58 years old (for
men) or under 53 years old (for women) and ineligible for early resignation
prescribed in Clause 2, Article 8 of this Decree, they shall receive the
following allowances when they apply for immediate resignation:
a) 3 month's salary;
b) 1,5 month's salary for the each
working year with full payment of social insurance premiums.
2. Resignation
after vocational training
Employees specified in Article
hereof who are under 45 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:
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b) An allowance equal to 06-month
salary;
c) 03 month salary after finishing
their vocational training courses;
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.
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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.
Authorities, State-owned
enterprises and organizations rehiring employees who received severance
packages shall get all severance packages back and submit them to the State
Budget. Money collected from those specified in clause 4, Article 6 hereof
shall be submitted to funds for redundancies due to restructuring of
State-owned enterprises.
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
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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:
a) Propagate, disseminate and
heighten awareness of officials, public employees and workers of the downsizing
policy stipulated hereof, within their administration.
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.
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4. The
Ministry of Finance shall verify the estimates of the severance packages,
budgets for downsizing and the grant of funding for downsizing.
5. The
supervisory authority shall settle all severance packages for displaced
employees.
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;
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Article 16.
Time limits for submission of downsizing checklists
1. Ministries,
regulatory bodies, and local governments shall submit their downsizing
checklists and budget estimates for the early- 06-month downsizing to the
Ministry of Home Affairs and Ministry of Finance by November 01st of
the year proceeding the downsizing year.
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.
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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
1. Execute the
downsizing policy in accordance with the procedure stipulated in Article 14
hereof.
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
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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.
3. Direct
heads of affiliates to establish downsizing proposals, downsizing checklists
and to estimate budgets 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
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.
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4. Submit the
downsizing progress report to the Prime Minister on February 15th every year.
5. Provide
instructions on examination and inspection of payroll management and employment
granted by State competent authorities. Any authority or organization whose
payroll exceeds the granted payroll shall be dealt with and shall cut the
excess.
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
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Chapter V
IMPLEMENTATION
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
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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./.
FOR
THE PRIME MINISTER
Nguyen Tan Dung