| THE GOVERNMENT | SOCIALIST REPUBLIC OF VIETNAM |
| No. 29/2023/ND-CP | Hanoi, June 3, 2023 |
Pursuant to the Law on Government Organization June 19, 2015; the Law on amendments to the Law on Organization of Government and the Law on Organization of Local Governments dated November 22, 2019;
Pursuant to Law on Social Insurance dated November 20, 2014;
Pursuant to the Labor Code dated November 20, 2019;
Pursuant to the Law Officials and Public employees dated December 13, 2008;
Pursuant to the Law on Public Employees dated November 15, 2010;
Pursuant to Law on amendments to the Law Officials and Public employees and the Law on Public Employees dated November 25, 2019;
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The Government issues this Decree on the downsizing policies.
This Decree provides for entities, rules, and policies of downsizing, and corresponding responsibilities of authorities, organizations, public sector entities of Communist Party of Vietnam, the Government, and socio-political organizations at all levels;
Article 2. People subject to the downsizing
1. Officials and public employees; officials and public employees of communes and employees working under permanent employment contract in State administrative agencies with the same policies as officials in accordance with the Government’s regulations shall be subject to the downsizing if:
a) They are made redundancy due to the restructuring of organizations or personnel upon decisions of the competent authority; or the conversion of public sector entities into autonomous ones;
b) They are made redundancy due to the restructuring of administrative divisions of districts and communes upon decisions of the competent authority;
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d) 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; or they are offered new jobs, but they have agreed to be downsized and their employers agree with that;
dd) In 2 consecutive years of downsizing consideration, their performance is recognized as “average” in 1 year and “poor” in 1 year, but their employer is unable to offer them new jobs. In the preceding year or within the year of downsizing consideration, their performance is recognized as “average” or worse, but they have agreed to be downsized and their employers agree with that;
e) The total annual sick leave is equal to or greater than the maximum leave stipulated in clause 1, Article 26 of the Law on Social Insurance for 02 consecutive years which is certified by the social security agency under applicable regulations of law. In the preceding year or within the year of downsizing consideration, their total annual sick leave is equal to or greater than the maximum leave stipulated in clause 1, Article 26 of the Law on Social Insurance which is certified by the social security agency under applicable regulations of law; or they have agreed to be downsized and their employers agree with that;
g) Officials or public employees who are no longer directors or transferred to lower-ranks, due to restructuring of administrative apparatus or divisions under decisions of the competent authority; or they have agreed to be downsized and their employers agree with that;
h) Officials or public employees during their disciplinary probation but not to the extent where dismissal is needed as per the law at the downsizing consideration time; or they have agreed to be downsized and their employers agree with that.
2. Redundancies of permanent employees who take positions mentioned in the list of specialized positions in public sector entities, in accordance with Government’s regulations, due to restructuring of personnel, under decisions of the competent authority.
3. Redundancies of people who worked part-time public duties in communes and villages/neighborhoods due to restructuring of administrative divisions therein, but they have been displaced within 12 months since the restructuring decision of the competent authority.
Article 3. Rules for downsizing
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.
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3. Commit that the downsizing is conducted democratically, objectively, openly, and transparently and in accordance with applicable laws.
4. Sufficiently and promptly settle all severance packages to displaced employees under applicable laws, effectively use the State budget.
5. The Heads of organizations shall be responsible for the downsizing within their jurisdiction.
6. If displaced employees are elected or re-recruited to organizations on State payrolls within 60 months after the date of downsizing, they must refund the severance packages they received before.
Article 4. People exempt from downsizing
1. People who are in pregnancy, on maternity leave, or have babies under 36 months, unless they are willing to be downsized.
2. People who are in their disciplinary probation, criminal prosecution, or are investigated because they are suspected of breaking the law.
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1. Displaced employees who are 2 to 5 years younger than the statutory retirement age as prescribed in Appendix II issued together with Decree No. 135/2020/ND-CP dated November 18, 2020 on retirement age (hereinafter referred to as Decree No. 135/2020/ND-CP) and have paid social insurance premiums for at least 20 years, and have worked in heavy, dangerous or hazardous industries on the list released by the Ministry of Labor, War Invalids and Social Affairs for full 15 years; or have worked for in severely disadvantaged areas for at least 15 years, on the list released by the Ministry of Labor, War Invalids and Social Affairs, including the working time in areas with region-based allowances of at least 0.7 before January 1, 2021, may benefit from the following welfares, besides pension policies under laws on social insurance:
a) Do not have pensions deducted because of early retirement;
b) Receive 03-month average salary for each early retirement year compared to the statutory retirement age stated in Appendix II issued together with Decree No. 135/2020/ND-CP;
c) Receive 05-month average salary for the first 20 working years with full payment of compulsory social insurance premiums. From the 21st working years onwards, each working year with social insurance premiums paid shall be granted a half of 01-month salary.
2. Displaced employees who are 2 to 5 years younger than the statutory retirement age as prescribed in Appendix I issued together with Decree No. 135/2020/ND-CP dated November 18, 2020 on retirement age, and have paid at least 20 years of compulsory social insurance premiums, may receive pensions as prescribed in Article 54 of the Law on Social Insurance 2014 (amended in 2019), and receive the following welfares:
a) Receive 03-month average salary for each early retirement year compared to the statutory retirement age stated in Appendix II issued together with Decree No. 135/2020/ND-CP;
b) Receive the welfares as prescribed in point a, point c clause 1 of this Article.
3. Displaced employees who are at least 2 years younger than the statutory retirement age as prescribed in Appendix II issued together with Decree No. 135/2020/ND-CP dated November 18, 2020 on retirement age (hereinafter referred to as Decree No. 135/2020/ND-CP), and have worked in heavy, dangerous or hazardous industries on the list released by the Ministry of Labor, War Invalids and Social Affairs for full 15 years; or have worked for in severely disadvantaged areas for at least 15 years, on the list released by the Ministry of Labor, War Invalids and Social Affairs, including the working time in areas with region-based allowances of at least 0.7 before January 1, 2021, shall benefit from pension policies under laws on social insurance and do not have pensions deducted because of early retirement.
4. Displaced employees who are at least 2 years younger than the statutory retirement age as prescribed in Appendix I issued together with Decree No. 135/2020/ND-CP, and have paid at least 20 years of compulsory social insurance premiums (or have paid at least 20 years of compulsory social insurance premiums as for female officials of communes) shall benefit from pension policies under laws on social insurance and do not have pensions deducted because of early retirement.
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a) Do not have pensions deducted because of early retirement;
b) Receive 05-month average salary and welfares specified in point a clause 2 of this Article.
Article 6. Labor transfer to organizations unfunded by the State budget
1. Displaced employees 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 each working year with full payment of compulsory social insurance premiums.
2. The policy promulgated in clause 1 hereof shall not apply to 3 types of employees: firstly, employees who are retained as the public sector entities converts into public sector entities that exercise autonomy in recurrent expenditures, or recurrent expenditures and capital expenditures, or converts into enterprises or equitization; secondly, displaced employees who are at least 3 years younger than the statutory retirement age as prescribed in Appendix II issued together with Decree No. 135/2020/ND-CP, have paid at least 20 years of compulsory social insurance premiums, have worked in heavy, dangerous or hazardous industries on the list released by the Ministry of Labor, War Invalids and Social Affairs for full 15 years; or have worked for in severely disadvantaged areas for at least 15 years, on the list released by the Ministry of Labor, War Invalids and Social Affairs, including the working time in areas with region-based allowances of at least 0.7 before January 1, 2021; thirdly, displaced employees who are 3 years younger than the statutory retirement age as prescribed in Appendix I issued together with Decree No. 135/2020/ND-CP, and have paid at least 20 years of compulsory social insurance premiums.
Article 7. Resignation policies
1. Immediate resignation:
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a) The current 3 month's salary for job search purpose;
b) 1/5-month salary for each working year with full payment of compulsory 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:
a) The full current monthly salary and still be paid social insurance, health insurance, and unemployment insurance premiums (if eligible for payment of unemployment insurance premiums) during the vocational training for maximum 06 months;
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;
dd) The vocation training duration is recognized as working period but it is not included in the seniority for annual advancement between steps.
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1. Displaced employees who are commune officials, due to reorganization of commune-level administrative divisions, who are 5 to 10 years younger than the statutory retirement age as prescribed in Appendix I issued together with Decree No. 135/2020/ND-CP, and have paid at least 20 years of compulsory social insurance premiums, may benefit from the following welfares, besides pension policies under laws on social insurance:
a) Do not have pensions deducted because of early retirement;
b) Receive 1.5-month average salary for each early retirement year compared to the statutory retirement age stated in Appendix I issued together with Decree No. 135/2020/ND-CP;
c) Receive the welfares as prescribed in point c clause 1 Article 5 of this Decree.
2. Displaced employees who are commune female officials, due to reorganization of commune-level administrative divisions, who are 5 to 10 years younger than the statutory retirement age as prescribed in Appendix I issued together with Decree No. 135/2020/ND-CP, and have paid full 15 years to under 20 years of compulsory social insurance premiums, may benefit from the following welfares, besides pension policies under laws on social insurance:
a) Do not have pensions deducted because of early retirement;
b) Receive 05-month average salary and welfares specified in point b clause 1 of this Article.
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a) Regarding officials
If they are displaced within 12 months since the decision of the competent authority: Each month before the end of their tenure shall be granted a half of current 1-month salary;
If they are displaced after 12 months since the decision of the competent authority to the end of their tenure: Each month before the end of their tenure shall be granted a quarter of current 1-month salary;
If their retirement date comes before the end of their tenure, the number of months for allowance is equal to the number of months being displaced before the mentioned retirement age.
b) Regarding public employees
If they are displaced within 12 months since the decision of the competent authority: Each month before the end date of redundancy process, under the decision of the competent authority, shall be granted a half of current 1-month salary;
If they are displaced after 12 months since the decision of the competent authority to the end of their tenure: Each month before the end date of redundancy process, under the decision of the competent authority, shall be granted a quarter of current 1-month salary;
If their retirement date comes before the end date of redundancy process, the number of months for allowance is equal to the number of months being displaced before the mentioned retirement age.
2. Displaced employees who have worked part-time public duties in communes, villages, neighborhood, due to reorganization of commune-level administrative divisions, and are displaced within 12 months since the decision of the competent authority, shall be granted the following allowances:
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b) As for those who are not elected: Each month before the end date of reorganization process shall be granted half of current 1-month allowance. If their retirement date comes before the end date of redundancy process, the number of months for allowance is equal to the number of months being displaced before the mentioned retirement age.
1. Current salary is the salary of the month preceding the month of downsizing. The monthly salary includes: the salary based on pay grade, pay step, position, title, professional title; or the salary stated in the employment contract, or the salary of managers; allowances for positions, extra-seniority, or occupational seniority; or the salary and differences in reserved allowances (if any) under applicable laws.
2. Average salary is the average salary of last 5 years (60 months) before downsizing. For those who work for under 05 years (under 60 months) with payment of social insurance premiums, their average salary shall be the average salary of the whole working duration.
3. The 1st of the month succeeding the birth month of an employee will be used to calculate his/her age to benefit the early retirement policy; the January 1st of the birth year of any employee will be used to calculate his/her age to benefit the early retirement policy if his birth day and month cannot be identified.
4. The time used to calculate allowances stated in Articles 5, 6, 7, and 8 of this Decree is the total working time during which compulsory social insurance premiums were paid (using each person's social insurance number) and during which the employee did not receive severance allowance, lump-sum social insurance payout, or demobilization allowance. If the mentioned time is not full year(s), it will be rounded up as follows: 1 month to full 6 months will be considered as half of year, and the allowance will be paid for half of year; 6 months to under 12 months will be considered as one year, and the allowance will be paid for one year.
5. If the time used to calculate allowance for early retirement specified in Article 5, Article 8 of this Decree is not full year(s), it will be rounded up as follow: 1 month to full 6 months will be considered as half of year, and the allowance will be paid for half of year; 6 months to under 12 months will be considered as one year, and the allowance will be paid for one year.
Article 11. Funding for downsizing
1. The funding for downsizing employees specified in clauses 1 and 2 of Article 2 hereof shall be granted by the State budget.
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The funding for downsizing employees who work under employment contracts with the same policies applying to officials shall be provided from their recurrent funding.
2. The funding for employees stipulated clause 2 Article 2 hereof shall be provided by their recurrent funding or revenues of recurrent services.
3. The funding for the downsizing of employees stipulated clause 4 and 5, Article 6 hereof shall be provided from the recurrent funding of the Association, including the state budget source which covers current expenditures, membership dues, and other legal fund sources as per the law.
4. The funding for the downsizing of employees stipulated in clauses 2 and 3, Article 18 hereof shall be provided from funds for ownership conversion, enterprise restructuring under applicable laws.
5. The funding for employees stipulated in clause 4 Article 18 hereof shall be provided from their recurrent funding of the off-budget financial fund.
RESPONSIBILITIES FOR DOWNSIZING
Article 12. Responsibilities of heads of supervisory authorities
1. Execute the downsizing policy in accordance with the procedure stipulated in this Decree.
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3. Make a list of employees to be displaced and estimates of allowances for them, and submit them to the competent authorities for approval.
4. Once receiving the approval of the competent authorities, they shall execute the downsizing process and pay allowances to displaced employees; pay social insurance and health insurance premiums for the employees prescribed in point a clause 2 Article 7 of this Decree.
5. If the downsizing process is executed against the law, the head of the superior authority shall:
a) Notify the social security agencies and relevant agencies to stop paying allowances and other benefits to relevant displaced employees; refund the social security agencies the fund paid to displaced employees who are on social insurance benefits (pensions, social insurance allowances, health insurance card’s fees);
b) Retrieve downsizing allowances which have been provided;
c) Pay the displaced employee the difference between their salary and other benefits as per the law on social insurance benefits they have been given;
d) Take legal actions against violating individuals; and be held legally responsible for the misapplication of downsizing regulations.
1. Execute the downsizing policy in accordance with the procedure stipulated in this Decree.
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3. Direct the same-level Department of Personnel and Organization and financial institutions to appraise downsizing checklists and downsizing budget estimates; allocate funding from these annual expenditure estimates.
4. Consider approving the downsizing checklists and budgets for downsizing; and be held legally responsible for this approval.
5. Based on the downsizing result in a year (including number of displaced employees and their given allowances stated in clause 3 Article 12 of this Decree), make a downsizing plan for the following year, and then direct the affiliated finance and planning division to make budget estimates for implementing that plan, and after that propose competent authorities to allocate such budget estimates from the following year’s general budget estimates of the Ministries or agencies.
6. If the downsizing is executed against the law, the downsizing funding and decisions shall be retrieved, and have employees not subject to downsizing return to work; take legal actions against violating individuals; and be held legally responsible for the misapplication of downsizing regulations.
7. Aggregate downsizing results and submit downsizing progress reports to the Ministry of Home Affairs and Ministry of Finance by February 15 every year.
1. People’s Committees of provinces
a) Execute the downsizing policy in accordance with the procedure stipulated in this Decree;
b) Direct heads of affiliates to establish downsizing proposals, downsizing checklists and to estimate budgets for downsizing as per the law;
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d) Direct the Department of Finance to appraise downsizing budget estimates; propose competent authorities to allocate funding from these annual expenditure estimates;
dd) Based on the downsizing result in a year (including number of displaced employees and their given allowances stated in clause 3 Article 12 of this Decree), make a downsizing plan for the following year, and then direct the Department of Finance to make budget estimates for implementing that plan, and include that into the following year’s general budget estimates of the provinces.
e) Aggregate downsizing results and submit downsizing progress reports to the Ministry of Home Affairs and Ministry of Finance by February 15 every year;
g) Based on the local state budget balance, propose the same-level People’s Council to issue extra policies for displaced employees.
2. Presidents of People’s Committees of provinces
a) Consider approving the downsizing checklists and budgets for downsizing; and be held legally responsible for this approval;
b) If the downsizing is executed against the law, the downsizing funding and decisions shall be retrieved, and have employees not subject to downsizing return to work; take legal actions against violating individuals; and be held legally responsible for the misapplication of downsizing regulations.
Article 15. Responsibilities of the Ministry of Home Affairs
1. Inspect the implementation of the downsizing policy in ministries, central authorities, and local governments.
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Article 16. Responsibilities of the Ministry of Finance
1. Guide relevant entities to determine budget sources, make estimates, use budgets, and make statements thereof for the downsizing policy laid down herein.
2. Submit the plan for funding allocations in accordance with the Law on State Budget to the competent authorities.
3. Aggregate and deal with downsizing budgets of local governments upon appraisal of the needs and wage reform sources of local governments on the annual basis.
Article 17. Responsibilities of Vietnam Security Insurance
Vietnam Security Insurance shall provide professional training and direct the social insurance of provinces to settle all social insurance benefits to displaced employees under this Decree.
Article 18. Application of this Decree to other entities
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2. Presidents of companies, Board members, Directors General, Deputy Directors General, Directors, Deputy Directors, Chief accountants, controllers of single-member state-owned limited liability companies (excluding Directors General, Deputy Directors General and Chief Accountants having employment contracts), including: parent companies of state-owned economic corporations; parent companies of state-owned general companies; parent companies in group of parent company - subsidiary, independent companies) who are made redundant due to equitization, buyout, acquisition, consolidation, division, dissolution, bankruptcy, or conversion into multiple-member limited liability companies or into public sector entities under competent authorities’ decisions; Directors, Deputy Directors, Chief accountants of State farms and plantations, who are made redundant due to the reorganization under provisions of laws.
3. Officials who are appointed as authorized representatives of the state contributions at enterprises, and made redundant due to the enterprise reorganization under provisions of laws.
4. Officials who are appointed leaders or administrators in off-budget financial fund, and made redundant due to the enterprise reorganization under provisions of laws.
5. Regarding district and commune officials who are made redundant due to the reorganization of communes and districts for 2019-2021 and have not benefited from the downsizing policy, the Presidents of People’s Committees of provinces shall apply clause 1 Article 9 hereof to them. The budget for this downsizing policy will be funded by the state budget.
1. This Decree enters into forces as of July 20, 2023. Severance packages and benefits promulgated hereof shall be valid to December 31, 2020.
2. The following Decrees cease to be effective since the date of entry into force of this Decree:
a) Decree No. 108/2014/ND-CP dated November 20, 2014 of Government;
b) Decree No. 113/2018/ND-CP dated August 31, 2018 of Government on amendments to Decree No. 108/2014/ND-CP dated November 20, 2014 of Government;
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Article 20. Transitional provisions
1. If a downsized employee leaves employment after this Decree takes effect, but the downsizing decision was made before the Decree was promulgated, the downsizing policy is not subject to review under the Decree. Ministers, Heads of ministerial-level agencies and Governmental agencies, Heads of non-public services provider established by the Government or the Prime Minister, Presidents of People’s Committees of provinces shall take personal responsibility for such a decision; and send downsizing progress reports to Ministry of Home Affairs and Ministry of Finance as prescribed in clause 7 Article 13 and point e clause 1 Article 14 of this Decree.
2. Article 11 of the Government’s Decree No. 108/2014/ND-CP will remain in effect until the Government issues new regulations.
Article 21. Responsibilities for implementation
1. The Central Organization Commission, Working Committee of Delegates affiliated to the Standing Committee of 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 Presidents of the People’s Committees of provinces shall be responsible for the implementation of this Decree.
ON BEHALF OF THE GOVERNMENT
THE PRIME MINISTER
Pham Minh Chinh
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File gốc của Decree No. 29/2023/ND-CP dated June 3, 2023 on downsizing policies đang được cập nhật.
Decree No. 29/2023/ND-CP dated June 3, 2023 on downsizing policies
Tóm tắt
| Cơ quan ban hành | Chính phủ |
| Số hiệu | 29/2023/ND-CP |
| Loại văn bản | Nghị định |
| Người ký | Phạm Minh Chính |
| Ngày ban hành | 2023-06-03 |
| Ngày hiệu lực | 2023-07-20 |
| Lĩnh vực | Lao động - Tiền lương |
| Tình trạng | Còn hiệu lực |