CIRCULAR Guide made a number of articles of Decree No. 41/2002/ND-CP dated 11 April 2002 from the Government on the policy for workers redundant by reorganization of State enterprises _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ made the Decree 41/2002/ND-CP dated 11 April 2002 from the Government on the policy for workers redundant by reorganization of State enterprises (hereafter abbreviated as Decree No. 41/2002/ND-CP), after the opinion of the ministries concerned and the Vietnam General Confederation of labor, the Ministry of labor, invalids and Social Affairs guide as follows: I-SCOPE OBJECTS, APPLY 1-scope is the State enterprise as defined in article 1 of Decree 41/2002/ND-CP , including: a) enterprises restructuring under the provisions of article 18 of the labor code, including:-100% capital holding businesses to the State;

-Company shares be transferred from State enterprises have been restructuring State agencies have the authority to confirm within 12 months from the date of the certification test registration under the enterprise law.

b) State enterprise restructuring done in the forms of conversion, including:-State enterprises transformed into a limited liability company members.

-State enterprises transformed into joint-stock companies;

-State Enterprise made the merger, merge;

-State enterprises making, selling, securities trading, corporate rental.

c) State enterprise is dissolved, bankrupt.

2-enterprises implement restructuring measures prescribed in detail a detail b, point 1, above the State Agency has the authority to approve or endorse restructuring projects in the period from 26/4/2002 (the time of effective enforcement of the Decree No. 41/2002/ND-CP) untill 31/12/2005 , enterprises were declared bankrupt, decided to dissolve in the period from 26/4/2002 to 31/12/2005.

3-the competent State agency approval of enterprise restructuring is the body competent to decide on establishment, reorganization, merger, merge; the decision to transform and diversify the ownership, management, was implemented according to the current rules. For the business is dissolved, bankrupt not browse schemes that base restructuring decided to dissolved or declared bankrupt business of competent bodies.

For private company shares are converted from State enterprises are operating time not exceeding 12 months from the date of certificate of business registration according to the corporate law by the Board of the company decided to restructure projects according to the Charter of the company and certified by the competent State agency decision to transfer State enterprises the joint-stock company.

4-workers redundant implementation of labor contract does not specify the time limit prescribed in article 2 paragraph 1 of Decree 41/2002/ND-CP including redundant workers were recruited to work in the enterprise before 30/8/1990 (as have enforceable labor contracts Ordinance) but at the time of reorganization has yet done signing labor contract in writing.

5-the employee named in the regular list of business specified in point b, paragraph 1 article 2 of Decree No. 41/2002/ND-CP is workers are recruited to work under employment contract does not specify the time limit or define the term from 1 to 3 years at the time of reorganization of enterprises , the workers and the employers not to terminate the labor contract according to the regulations of the labour law.

II-LABOR POLICY REDUNDANT 1-policy for redundant workers are making labor contract does not specify the time limit stipulated in article 3 of Decree 41/2002/ND-CP stipulates as follows: a) workers aged 55 to 60 years old enough for men, age 50 to 55 years old for women under , there is time enough social insurance premiums for 20 years and older are retired, not subtract the percentage of pensions due to the break before age under the provisions of the Charter of social insurance, in addition to enjoying more the following subsidies: a. 1) support 3 months salary rank, position, salary allowance (if any) are affected for each year (full 12 months) before the age of retirement. The case of the odd month calculated the subsidy as follows: + If enough 6 months back down 01-subsidized wages rank, position, salary allowance (if any).

+ If over 6 months to under 12 months support 2, salary level, position, salary allowance (if any).

a. 2) grants 5, salary level, position, salary allowance (if any) are entitled to 20 years early have social insurance premiums.

a. 3) From the 21st year onward, for every year of work has social insurance support 1/2 month salary for the rank, position, salary allowance (if any). Case, travelers are in principle on 6 may be counted as a year, enough for 6 months and under do not count.

Wage and salary allowances to a policy as stipulated in Decree No. 41/2002/ND-CP is the salary level, position and salary allowances stipulated in Decree No. 26/CP dated 23/5/1993 of the Government of the temporary regulations of new salary mode in enterprises , Decree No. 25/CP dated 23/5/1993 of the Government of the temporary regulations of new salary mode of public servants, administrative officials and the armed forces and by the State minimum wages stipulated at the time of the holiday. Case workers have yet to move salary arrangements made to transfer salary arrangements prescribed in the above-mentioned Decree.

The allowances are calculated (if any) including: Office allowances, the allowance area.

Example 1: Mr. Nguyen Van A car worker, at the time of the holiday has enough 56 years 4 months; There are social insurance period is 25 years 8 months; the coefficient of salary level are entitled to 2.84 (ranks 6, group II salary salary scale in a. 1 mechanical, electrical, electronics-informatics); 0.5 area allowance; minimum salary 210,000/month. He A was entitled to the mode as follows: + the rate% shall be entitled to a pension:-15 years head count by 45%.

-From the 16th to the 25th year is 2% more each year is 20% (10 years x 2% = 20%).

-The rate is 65% pension enjoyed by% (45% + 20%).

+ Pension due to retirement before the age:-salary and salary allowance level 1:210,000 Dong (2.84 + 0.5) = Bronze 701,400-number months are entitled to subsidized regime: to retire before the age of 3 years 8 months: (3 years 3 months/year x + 2) = 11, Have 20 years early have close social insurance = 5 months From the 21st year onward have close social insurance = 3 months ( 5 years 8 months to 6 years x 1/2)-----------------------plus: December-the amount of support: 13,326,600 (701,400/month x 19) b) retirement age workers under the provisions of the labor law, but also lack of time social insurance premiums a maximum of one year (12 months), then it is State funding next social insurance for the months remaining the level of 15%, wages at the time were old enough to retire and settle retired under the current regime, including the following: b. 1) Male female age 55 60 enough years had time enough social insurance premiums for 14 years to under 15 years.


Example 2: Mr. Nguyen Van B product delivery workers at the time of the full 60 years old, have enough social insurance premiums for 14 years; salary multipliers are affected 2.73 (ranks 6, salary, salary, I group a. 15 food, food processing); minimum salary 210,000/month. Mr. B was the State support the next social insurance for 12 months with 15% of the salary base of social insurance premiums a monthly and procedures to solve retirement regime under current rules.

+ A month's salary as a base of social insurance: 210,000 VND x 2.73 = 573,300 copper + social insurance plays a times: (573,300 copper x 15%) x 12 months = 1,031,940.

+ The percentage% of the pension entitlement is 45% (15-year social insurance).

b. 2) Male female age 55 enough 50 years old, have enough 15 years doing the craft, heavy-duty, toxic or enough 15 years working at the regional level where the coefficient of 0.7 or 10 years of actual work enough in the field B, C before 30/4/1975, the field K ago 31/8/1981 had time enough social insurance premiums 19 years to under 20 years.

Example 3: Mr. Nguyen Van C cooking kitchen workers at the time of the holiday has enough 55 years; There are enough 19 years 6 months social insurance premiums; salary multipliers are entitled to 2.07 (tier 5, group II salary, A salary scale 20 eating), the minimum salary 210,000/month. Mr. C is State funding next social insurance once for 6 months with 15% of the salary base monthly social insurance and procedures to solve retirement regime under current rules.

-A month's salary as a base of social insurance: 210,000 VND x 2.07 = 434,700 Council-social premium plays a times: (East 434,700 x 15%) x 6 months = 391,230.

-The rate of pension is 15 percent in the early count by 45%.

From 16 to 20 years are charged an additional 10%.

(5 years, 2% per year; 5 years x 2%)

The rate of pension is 55% (% 45% + 10%).

b. 3) Male female age 45 50 years time has enough social insurance premiums 19 years to under 20 years that impaired the ability of labor from 61% or over.

b. 4) workers (regardless of age) at least 15 business or special heavy work, especially toxic has enough social insurance premiums 19 years to under 20 years that impaired the ability of labor from 61% or over.

c) redundant workers not subject to the provisions in detail a and detail b, point 1 above, perform the termination of labor contract and entitled the mode as follows: c. 1) subsidize job loss is calculated according to the actual time worked in the public sector, for every year (full 12 months) 01-subsidized wages rank , position, lưong allowances (if any) are entitled to the lowest but also by 2 months salary, salary allowance are entitled.

c. 2) Was more support 1st, salary level, position, salary allowance (if any) are entitled to the full 12-month per year) actually work in the public sector and subsidized once with 5 (five) million.

The actual time worked in the public sector is the time employees actually working in State enterprises, agencies, public sector units, units of the armed forces (are paid from State budget sources) are up to the time of the decision to the employee due to restructuring or conversion property , management. For private company shares be transferred from State enterprises as defined in point 1 a of section I of this circular, the actual time worked in the public sector up to date certificate of business registration under the enterprise law. The actual time worked in the public sector does not include the time the worker has lost support, employment, retrenchment, or discharge mode.

If the actual time worked in the public sector has, travellers are defined as follows: + Under 1, don't count;

+ From 1 month to 6 months 6 months in fact work;

+ From 7 to under 12 months are calculated by 1 year practical work.

c. 3) Ttợ levels once gone to find work is 6 (six) months of salary rank, position, salary allowance (if any) are affected. If the vocational aspirations are free up to 6 months in vocational establishments by the Department of labor, invalids and Social Affairs.

Wage and salary allowances are applied according to the provisions in detail a, point 1 of section II of this circular.

For example 4: Mr. Nguyen Van D first ship repair workers, fire and wagons at the time of the holiday has enough 54 years; to have the actual time worked in the public sector is 30 years 7 months; There are 3.05 wage coefficient (ranks 6, III, salary wage group a. 1 mechanical, electrical, electronic, informatic); minimum salary 210,000/month. Mr D enjoyed the mode as follows: Dong x 3.05 210,000 = 640,500 job loss grant calculated according to actual time worked: 640.500 VND/month x 31 = 19,855,500.

Grants more time actually working: 640,500 VND/month x 31 = 19,855,500: grant 5 million grant go to find work: 640,500/month x 6 months = 3,843,000 Council of the total amount received: 48,554,000 (19.855.500 + 19.855.500 + 5,000,000 VND VND VND VND 3.843.000 +) example 5: Mr. Nguyen Van E workers build roads at the time of the holiday has enough real time age 54 health work in the public sector is 27 years 7 months; have a wage coefficient 3.45 (steps 7, group II salary, salary scale A6 construction) is 210,000 minimum wages Council. He has enjoyed a support cable mode E job loss is 15 years. He E enjoy the mode as follows: salaries and allowances salary ranks a month is: 210,000 VND x 3.45 = bronze 724,500 actual time working are entitled to subsidized regime: 28 years-15 years = 13-year job loss grant calculated according to actual time worked: 724,500/month x 12 months = 9,418,500 more grant calculated according to actual time worked : 724,500/month x 12 months = 9,418,500.

Fixed subsidy per is: 5 million grant go to find work: 724,500/month x 6 months = 4,347,000 contract total amount received: 28,184,000 (9.418.500 + 9.418.500 + 5,000,000 VND VND VND VND 4.347.000 +) c4. The missing workers may maximum retirement age under the provisions of the labor code (male 55 years enough to under 60 years old, female 50 years old to under 55 years old) and have enough social insurance 15 years or older that have not received social security subsidies, as defined in paragraph 3 d of Decree 41/2002/ND-CP Today, specifies the following: + enjoy the policy prescribed in the c1, c2 c weather point 1 of section II of this circular.

+ Be social insurance premiums every month with a 15% salary until full retirement age prescribed (age 60 for men, 55 for women) are entitled to monthly pensions according to the current rules.

Salary as a base of social insurance is the salary as a base of social insurance premiums before the holiday, including: wages rank position, held the position allowance allowance area coefficient difference reserve salary according to the minimum wage prescribed by the State at the time of submission of social insurance.

+ Next time social insurance from the date of the decision.


Example 6: Mr. Nguyen Van F bridge construction workers at the time of the holiday has enough 57 years; the actual working time in public 17 years 6 months; There are 3.05 wage ratio (tier III salary group 6 A6 construction); area allowance 0.4; the minimum salary is 210,000/month. He F subject to social insurance next until full retirement age (60 years) are addressed as follows:-mode grants job loss: wage level and wage allowance a month: 210,000 VND (3.05 + 0.4) = 724,500 grant lost work according to the actual time worked : 724,500/month x 17.5 months = 12,670,750 more grant calculated according to actual time worked: 724,500/month x 17.5 months = 12,670,750 grant fixed lump is: 5 million.

The total amount to be received is: 30,341,500 (12.670.750 + 12.670.750 + 5,000,000 VND VND VND)-Mr. F social insurance next to 3 years (36 months); premium level of monthly social: Dong x 15% = 108,675 724,500.

+ Record, the procedure closes the next social insurance made under the guidance of social insurance in Vietnam.

+ The free time In social insurance premiums, if the worker died, the relatives are entitled to a death dog mode according to the current rules.

Cases of workers not eligible next social insurance shall in addition be entitled the mode specified in c1, c2, c3 details c point 1 of section II of this circular also reserve the time had close social insurance and social insurance book issued or received social security subsidies. Procedures, records resolving is done according to the current rules.

2. The policy for workers made redundant labor contracts specify the duration from 1 to 3, the provisions of article 4 of Decree No. 41/2002/ND-CP, specifies the following: a. the subsidized job loss for every year of practical work in the public sector is 1, the salary level allowance and salary position, (if any).

b. 70% subsidized wages rank, position and salary allowances (if any) for the remaining months haven't made out labor contracts have committed, but must not exceed 12 months of salary rank, position and salary allowances specified in point 1 of section II of this circular.

The actual time worked in the public sector are regulated in detail c of point 1 of section II of this circular.

Example 7: Mr. Nguyen Van G gravel, sand mining workers make labor contracts have limited time is 3 years, at the time of the implementation of the new contract painting is 12 months, 24 months remaining unfinished labor contracts have committed, but as a rule only be entitled to a maximum of 12 months. So Mr. G only support (70% x 12 months) the salary level and salary allowances (if any).

c. lack of workers a maximum of 5 years retirement age under the provisions of the labor code (male 55 years enough to under 60 years old, female 50 years old to under 55 years have enough social insurance 15 years or older that have not received social security subsidies, as defined in paragraph 3 article 4 of Decree 41/2002/ND-CP Today, specifies the following: + enjoy the policy prescribed in detail a detail b, above.

+ Be closed next monthly social insurance with a 15% salary until full retirement age prescribed (age 60 for men, 55 for women) are entitled to monthly pensions according to the current rules.

Salary as a base of social insurance is the salary as a base of social insurance premiums before the holiday include: the salary level, position, position allowances, regional allowances, multiplied by the difference in reserves is calculated according to wages the minimum wage prescribed by the State at the time of submission of social insurance.

+ Next time social insurance from the date of the decision.

3. Workers got subsidized mode job loss if was recruited to work in the business has for retrenchment or in other State enterprises must repay the amount of the subsidy under the provisions of article 5 of Decree 41/2002/NĐ CP is specifically as follows: a. workers were recruited to work for the business has for retrenchment or in the other State enterprises when recruiting applicants according to the current rules and accompanied by a copy of the decision to break the influence of the labor policy redundant due to the reorganization of State enterprises and return it to the employer the amount of additional aid as defined in point b of paragraph 3 of article 3 of Decree 41/2002/ND-CP (1, salary level , position, position allowances, the allowance areas and 5 million).

b. The employer is responsible for collecting the subsidy amount that workers have filed to file about the Labor Fund supports redundant provisions of the Ministry of finance.

III-FUNDING SOURCE to PAY the funds to pay for the mode workers redundant are made according to the provisions of article 7, article 8 of Decree 41/2002/ND-CP and the text direction of the Ministry of finance.

IV-ORGANIZATION: 1-the responsibility of the business: the business arrangements and labour again solve for mode of labor redundant provisions of article 9 of Decree 41/2002/ND-CP is responsible to follow the following sequence: a. advocacy organization advocates the policies of the party and the State on arrangements innovation continues development, and improve the efficiency of State enterprises and labor policy redundant workers to understand the policies of the party and State.

b. Building sustained labor arrangement approach.

The enterprise conducts building projects including the restructuring plan to labor arrangement, be made according to the following steps: step 1: make a list of all the employees of the enterprise at the time of restructuring under the provisions of article I of Decree No. 41/2002/ND-CP of the Government (model No. 1 attached to this circular) , includes:-employees are paid work and social insurance or social insurance premiums not (including labor of seasonal work or follow a certain job for which the time limit under a year).

-The number of workers but has yet to have a name in the list of business, paid or not paid, have social insurance or social insurance no.

Step 2: determine the number of workers needed to use and redundant workers as follows:-for 100% capital holding Enterprise State and State enterprises transformed into a limited liability company members: determine the number of workers needed to use on the basis of option trading-production, production technology of the product machinery, equipment, labor norms towards enterprise development and with interest, the competent State agencies; of the remaining workers is the labor needs no use;

-For business execution, sale, lease and rental business, the business of labor need to use is the number of workers under the agreement between the two parties (shipping delivery, sale and purchase, lease and receive securities, leasing and renting) is recorded in the contract of sale, lease or rental of the business; of the remaining workers is the labor needs no use;

-For performing business holdings in the period from 26/4/2002 expired on December 31, 2005, the number of workers needed to use based on the capitalization variant was the State Agency has the authority to approve, the rest is labor of labor needs no use;


-For company shares are converted from State enterprises are operating time not exceeding 12 months from the date of certificate of business registration under the enterprise law, when implemented restructuring if there are workers from State enterprises move to the layout is not defined, then the job is labor needs no use;

-For enterprises merger, consolidation, the number of workers needed to use based on the merger, the merger has been approved by the competent authority, of the remaining workers is the labor needs no use;

Employees have no need to use specified in step 2 above are classified in two types: number of employees recruited before April 21/4/1998 is made redundant labour regime as stipulated in Decree No. 41/2002/ND-CP; the number of workers recruited from 21/04/1998 made the mode according to the provisions of the labor code;

-For businesses that make dissolution, bankruptcy, then the whole of labour in the list of enterprises to be recruited before the day 26/4/2002 was a policy as stipulated in Decree No. 41/2002/ND-CP on recruitment April 26, 2002 resolved modes under the provisions of the labor code.

Step 3: make a list of labor need to use (model No. 2 attached to this circular), the number of labor needs no use (model No. 3 attached to this circular).

Step 4: the business collaboration with the Executive Committee of the trade union organization officials to Congress for comments on list of Labor (from No. 1 to no. 3 sample form).

Step 5: on the basis of the opinion of the Congress of employees, complete business plans of this labour arrangement, the competent agency specified in point 5 section IV of this circular, for approval. Your browser records do 6 sets, each set consists of:-the text recommended approval of labor arrangements (model No. 4 attached to this circular),-reordering of labour approach (model No. 5 with this),-the list of labour has been classified (from No. 1 to no. 3 sample form attached to this circular).

State Enterprise for own dissolution, bankruptcy is not browser business restructuring projects which only browser option labor arrangements (sample 1, 3 attached to this circular).

c. Pay subsidies for workers redundant.

Within 15 days (working days) from the date the competent authority approval rights to labor arrangement made business pay subsidies to employees as follows: c1. The decision for each redundant workers leave under the group policy was stipulated in Decree No. 41/2002/ND-CP (model No. 6 attached to this circular; The decision made in 2 copies: 1 a send to employees, 1 a save in the enterprise).

C2. Estimation of funding regime for redundant workers under the Group Policy (model No. 7, 8, 9, 10 attached to this circular).

C3. Prepare recommendations in support of funding from the Labour Fund supports redundant is made according to the regulations of the Ministry of finance.

C4. For labour, there is no need to use the resolve mode not in accordance to Decree 41/2002/ND-CP (model No. 11 attached herewith) established a list of private business to solve the mode according to the provisions of the labor code.

d. solve the regime for workers.

-The responsibility of the business.

+ Base decided to leave, full resolution and properly defined period the subsidies for workers redundant;

+ Free trade vote Level once for employees have vocational aspirations (model No 12 attached to this circular);

+ Doing full profiles, procedure for resolving social security mode as specified by law;

+ Clearly the reason for the holiday and the benefits open to labour and return the full profile for workers under the provisions of the law;

+ Within 7 days (working days) from the date of receiving funding from the Labour Fund supports redundant, businesses have a responsibility to pay directly, once in business for thy labor the subsidies under the scheme was approved.

-The responsibility of workers when policy influence: + newsletter full of payments;

+ Newsletter + job profiles complete the payment owed for business (if any).

e. at the latest after 30 days (working days) from the date of completion of the resolution with respect to mode of labor redundant, businesses have a responsibility to report the results to the competent authorities. Report contents include: reviews that are and have been, the results of pay (according to the regulations of the Ministry of Finance) report made into 6 sets and send: approval of labour, the Ministry of finance, Ministry of labor, invalids and Social Affairs, on social insurance of Vietnam, the Department of labor, invalids and Social Affairs of the province the central cities, and saved in the business.

2. responsibility of workers when the apprenticeship and vocational establishments: a. employees redundant have vocational aspirations was granted free trade votes to apply vocational apprenticeship has been the Department of labor, invalids and Social Affairs specify the time limit for filing an apprenticeship for a maximum of 90 days from the date of the decision.

b. vocational establishments are responsible for receiving the registration records of apprenticeship workers redundant aspiring apprenticeship, records include:-A key free trade votes by employers;

-A copy of the decision to break the influence of the labor policy redundant due to the reorganization of State enterprises.

After receiving vocational profile, confirm "agree to receive vocational training", signed, stamped on the back of a political decision to leave and return for workers.

Vocational is a maximum funding level 6, to free vocational training for redundant workers have vocational aspirations. Training course fees, processes, procedures and funding settlement is done according to the instructions of the Ministry of finance.

3. The Department of labour, invalids and Social Affairs Department, central cities are responsible for: a) Helps people Committee, central cities urge and examine policy for workers redundant;

b) specifies the vocational labour agencies, invalids and Social Affairs vocational registration level and establish a list of specified vocational (vocational; specific address) submitted to the Ministry of finance to the level of funding apprenticeship. Each province, city are specified up to 20 vocational and be informed on the news media.

4. social insurance in Vietnam is responsible for directing, guiding, social security checks and the central cities, make social security mode for redundant workers as prescribed in this circular and the current rules.

5. The responsibilities of the Ministry; ministerial bodies; Chairman of the provincial people's Committee of the central cities, the Board Of the company 91: a) advocacy organization advocates, the party and State's policy of continuing to arrange, innovate, develop and improve the efficiency of State enterprises, especially the labor policy redundant;

b) approval to labor arrangement due to enterprise restructuring; appraisal schemes please support funding of enterprises under the guidance of the Ministry of finance;


Within 15 days (working days) from the date of receiving the sort of labor approach of the business, the competent authority responsible for approval duỵệt and send the decision to the same 5 record for business, the case has not yet been approved by the competent agency business guide modify , additional options. Within 10 days (working days) from the date of receiving the Agency's approach has the authority to finalize business plans submitted for approval authority.

c) directing bodies, professional organizations guide enterprises administered in an elaborate scheme rearrangement, check the resolution of the labour policy redundant and according to the provisions of this circular;

d) preliminary organization, summarizing reviews the results of labor resolution redundant;

e) periodically 3, once reported the Ministry of labor, invalids and Social Affairs, at the same time sent to the Finance Ministry about the situation of the implementation of labor arrangements and solve labour redundant: reviews that are and have been, the results (model number 13, 14 the attached to this circular) proposals to solve the problems and obstacles in the process also done, time of report 15/4; 15/7; October 15 annually and an annual report on June 15, 1 year later to report to the Government.

6. This circular takes effect from the day 26/4/2002 to 31/12/2005.

In the process, if there are obstacles, the proposal reflects on the Ministry of labour, invalids and Social Affairs to study the resolution.