Decree No. 61/2015/ND-CP dated July 9th 2015, on job creation policies and National Employment Fund

DECREE

ON JOB CREATION POLICIES AND NATIONAL EMPLOYMENT FUND

Pursuant to the Law on the organization of the Government dated December 25, 2001;

Pursuant to the Labor Code dated June 18, 2012;

Pursuant to the Law on employment dated November 16, 2013;

At the request of the Minister of Labor, War Invalids and Social Affairs,

The Government promulgates a Decree on job creation policies and National Employment Fund.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree provides guidelines for the Labor Code and the Law on employment in terms of temporary employment policy, support for guest workers, job creation policies for young people and National Employment Fund.

Article 2. Regulated entities

1. The workers prescribed in Clause 1 Article 3 of the Law on employment.

2. The employers prescribed in Clause 2 Article 3 of the Labor Code.

3. Agencies, enterprises, organizations and individuals relating to contents prescribed in Article 1 of this Decree.

Chapter II

TEMPORARY EMPLOYMENT POLICY

Section 1. SELECTION AND NOTIFICATIONS OF PROJECTS OR OPERATIONS ADOPTING TEMPORARY EMPLOYMENT POLICY

Article 3. Selection and notifications of projects or operations adopting temporary employment policy

1. The projects or operations prescribed in Clause 1 Article 18 of the Law on employment that are selected to adopt temporary employment policy include:

a) The projects or operations in terms of protection, management and use of soil, water and forest resources; responses to natural disasters and climate change;

b) The projects or operations in terms of preservation and development of culture and tourism;

c) The projects or operations in terms of construction, renovation and maintenance: traffic system, schools, nurseries, medical stations, markets, facilities serving the culture and sports operations; irrigation works, dike maintenance; facilities providing electricity, fresh water and environment hygiene;

d) Other projects or operations serving the community.

2. Ministers, Heads of ministerial-level agencies; the Presidents of the People’s Committees of central-affiliated cities and provinces (hereinafter referred to as provinces); the Presidents of the People’s Committees of districts, district-level towns, and provincial-affiliated cities (hereinafter referred to as districts); the Presidents of the People’s Committees of communes, wards and towns (hereinafter referred to as communes) shall decide the temporary employment policy adopted according to each project or operation prescribed in Clause 1 of this Article.

Article 4. Notifications of projects or operations adopting temporary employment policy

1. Ministries, ministerial-level agencies, People's Committees of provinces, and People’s Committees of districts shall notify People’s Committees of communes where projects or operations adopting temporary employment policy are located in terms of scope and planned pieces of work; prospected quality, schedule and number of workers participating in the temporary employment policy.

2. People’s Committees of communes shall publicly post up notifications prescribed in Clause 1 of this Article at the head offices, places for community operations and by the means of media of the communes.

Section 2. PARTICIPATION IN TEMPORARY EMPLOYMENT POLICY

Article 5. Application for participation in temporary employment policy

1. Each worker wishing to participate in the temporary employment policy shall apply for joining projects or operations prescribed in Article 3 of this Decree with the People’s Committee of commune where he/she legally resides as prescribed by the Ministry of Labor, War Invalids and Social Affairs.

2. Each People’s Committee of commune shall make a list of workers participating in the temporary employment policy, and then publicly post up it at the head office, places for community operations and by the means of media of the commune.

Article 6. Selection of workers participating in temporary employment policy

Each People’s Committee of commune shall cooperate with contractors (if any), socio-political organizations, representatives of the communities obtaining benefits from a project or an operation adopting the temporary employment policy in selection of workers participating in the temporary employment policy from the list of registered workers according to the order of precedence as follows:

1. The entities prescribed in Clause 2 Article 19 of the Law on employment.

2. Workers in households whose primary business is agricultural production.

3. Workers who legally reside in the administrative division where the project or operation is executed.

Article 7. Benefits for workers participating in temporary employment policy

1. Each employer having workers participating in temporary employment policy must conclude labor contracts with the workers and offer benefits to workers as prescribed in law on labor.

2. With respect to projects or operations adopting the temporary employment policy in which communities participate as prescribed in law on bidding, the Ministry of Labor, War Invalids and Social Affairs shall provide guidance on benefits for workers.

Section 3. IMPLEMENTATION OF TEMPORARY EMPLOYMENT POLICY

Article 8. Responsibility of Ministries, ministerial-level agencies and People’s Committees

1. The Ministry of Labor, War Invalids and Social Affairs shall instruct and inspect the temporary employment policy, and send reports on the results of implementation of the temporary employment policy to the Government.

2. Ministries, ministerial-level agencies shall take charge and instruct the execution of projects or operations adopting the temporary employment policy; inspect and send reports on results of implementation of temporary employment policy to the Ministry of Labor, War Invalids and Social Affairs.

3. People’s Committees shall execute the projects or operations adopting the temporary employment policy; inspect and send reports on results of implementation of temporary employment policy as guided by the Ministry of Labor, War Invalids and Social Affairs.

Article 9. Community’s monitoring of implementation of temporary employment policy

1. Each community shall monitor the employment and implementation of regulations applicable to workers participating in the temporary employment policy in the administrative division.

2. Each socio-political organization shall monitor the employment and implementation of regulations applicable to workers participating in the temporary employment policy in the administrative division.

Chapter III

SUPPORT FOR GUEST WORKERS

Article 10. Support for guest workers

If a worker who is an ethnic, a member of a poor household, a near poor household or a household having agricultural land withdrawn, or a relative of people with meritorious services to the revolution wishes to be a guest worker, he/she shall be eligible for:

1. The support for vocational training, foreign languages and training of necessary knowledge, including:

a) Tuition fees;

b) Food expenses in real learning time;

c) Travel expenses (round-trip tickets) for the distance between the residence and the training institution of 15 km or longer or 10 km or longer applicable to employees who legally reside in severely disadvantaged areas.

Employees in poor districts may also receive expenses for accommodation and essential personal items.

2. The financial support for procedures for passports, visas, check-ups, criminal records before the workers sent abroad to work as prescribed.

3. Support for risk settlement throughout the overseas working time as prescribed.

4. Financial support for training in professional skills on request of the host country.

5. The Ministry of Labor, War Invalids and Social Affairs shall take charge and cooperate with relevant agencies in providing guidelines for procedures and amount of financial support for each entity.

Article 11. Provision of loans guest workers

1. Each worker who is a member of a poor household or a household having agricultural land withdrawn and an ethnic is entitled to apply to the Vietnam Bank for Social Policies (hereinafter referred to as VBSP) for loans according to the guest worker program as prescribed.

2. Each worker who is a member of a near poor household or a relative of people with meritorious services to the revolution is entitled to apply to National Employment Fund for loans according to the guest worker program as prescribed in Section 3 Chapter V of this Decree.

Article 12. Support for development of overseas labor market

1. The support for development of overseas labor market:

a) Researching and surveying overseas labor market;

b) Disseminating information about Vietnam workforce;

c) Promoting overseas labor market.

2. The Ministry of Labor, War Invalids and Social Affairs shall take charge and cooperate with relevant agencies in providing guidelines for financial support for overseas labor market.

Article 13. Operating budget

The budget for guest worker programs shall be allocated from the government budget. The supportive budget for workers living households having agricultural land withdrawn shall comply with regulations in the Law on land and guiding documents.

Chapter IV

JOB CREATION FOR YOUNG PEOPLE

Section 1. VOCATIONAL TRAINING FOR YOUNG PEOPLE COMPLETING MILITARY SERVICE, POLICE DUTIES AND YOUTH VOLUNTEER

Article 14. Entities eligible for vocational training

The young people completing military service, police duties or youth volunteer completing programs and projects in terms of socio-economic development shall be eligible for vocational training if they meet all requirements prescribed in Article 15 of this Decree.

Article 15. Requirements for vocational training

The entities prescribed in Article 14 of this Decree shall be eligible for vocational training if they meet all requirements below:

1. They apply for vocational training with a period of 12 month from the date on which they complete their military service, police duties; or programs and projects in terms of socio-economic development;

2. They have not received any other support for vocational training funded by government budget from the date on which they complete their military service, police duties; or programs and projects in terms of socio-economic development.

Article 16. Financial support for vocational training

1. If the entities prescribed in Article 14 of this Decree apply for intermediate-level or college-level vocational training, they shall be eligible for:

a) Tuition fee exemption or reduction and financial aid as prescribed in the Law on Education, the Law on vocational education and guiding documents.

b) Taking loans as prescribed in policies on credits for students in difficulties.

2. If the entities prescribed in Article 14 of this Decree apply for elementary-level vocational training, they shall be issued a vocational training voucher that is worth a maximum of 12-month base salary at the time in which the vocational training is provided and valid for 1 year from the date of issue.

3. The Ministry of Labor, War Invalids and Social Affairs, the Ministry of National Defense and the Ministry of Public Security shall provide guidelines for implementation of support for vocational training applicable to those prescribed in Article 14 of this Decree.

Article 17. Supportive budget for vocational training

The supportive budget for vocational training applicable to those prescribed in Article 14 of this Decree shall comply with law on government budget.

Section 2. SUPPORTING YOUTH PEOPLE IN BUILDING CAREER AND STARTING BUSINESSES

Article 18. Supporting youth people in building career

1. Eligible entities:

a) Students of upper secondary schools;

b) Students of higher education institutions and vocational education institutions;

c) Graduates of higher education institutions and vocational education institutions.

2. Contents:

a) Career orientation;

b) Provision of information about jobs and career;

c) Training in job-search and working skills;

d) Probation programs at enterprises and organizations;

dd) Concessional loans from National Employment Fund as prescribed.

3. According to the socio-economic condition of each period, the Ministry of Labor, War Invalids and Social Affairs and relevant agencies shall request the Prime Minister to decide to support youth people in building career.

Article 19. Supporting youth people in starting businesses

1. Eligible entities:

a) Youth people wishing to start their own businesses;

b) Youth people built up their own businesses.

2. Contents:

a) Provide knowledge about law, enterprise administration and issues related to starting business;

b) Provide training courses in starting business;

c) Concessional loans from National Employment Fund as prescribed.

3. According to the socio-economic condition of each period, the Ministry of Labor, War Invalids and Social Affairs and relevant agencies shall request the Prime Minister to decide to support youth people in starting businesses.

Chapter V

NATIONAL EMPLOYMENT FUND

Section 1. MANAGEMENT AND USE OF NATIONAL EMPLOYMENT FUND

Article 20. Use of National Employment Fund

National Employment Fund (hereinafter referred to as Fund) shall be used in the following operations:

1. Granting concessional loans to small and medium-sized enterprises, cooperatives, artels, business households and employees for job creation, maintenance and extension.

2. Granting concessional loans to guest workers.

Article 21. Management of National Employment Fund

1. The Ministry of Labor, War Invalids and Social Affairs shall perform the role of regulatory agency in monitoring of the Fund; cooperate with the Ministry of Finance and the Ministry of Planning and Investment in allocation of sources of funds and employment targets to People's Committees of provinces and central agencies of Vietnam Women's Union, Communist Youth Union of Ho Chi Minh City, Vietnam Farmers' Union, Vietnam General Confederation of Labour, Vietnam Veterans Association, Vietnam Union of Cooperatives, and Vietnam Blind Association (hereinafter referred to as organizations in charge).

2. The People’s Committees of the provinces and central agencies of organizations in charge shall manage and use the fund sources of the Fund as prescribed in this Decree.

3. VBSP shall manage the Fund and grant loans as prescribed in this Decree. The VBSP shall send reports on results of implementation to the Ministry of Labor, War Invalids and Social Affairs.

Section 2. GRANTING CONCESSIONAL LOANS TO SMALL AND MEDIUM-SIZED ENTERPRISES, COOPERATIVES, ARTELS, BUSINESS HOUSEHOLDS AND EMPLOYEES

Article 22. Rules for granting loans

1. Eligible borrowers for the purposes of support for job creation, maintenance and extension.

2. Fund preservation.

3. Simple and transparent procedures.

Article 23. Borrowers

1. The entities eligible for loans (hereinafter referred to as borrowers) shall be prescribed in Clause 1 Article 12 of the Law on employment.

2. Small and medium-sized enterprises, cooperatives, artels or business households (hereinafter referred to as business entities) that employ many disabled people or ethnics as prescribed in Point a Clause 2 Article 12 of the Law on employment, in particular:

a) The business entity employing many disabled employees means that the number of disabled employees accounts for at least 30% of the total number of employees;

b) The business entity employing many ethnic employees means that the number of ethnic employees accounts for at least 30% of the total number of employees;

c) The business entity employing many disabled and ethnic employees means that the number of disabled and ethnic employees accounts for at least 30% of the total number of employees.

Article 24. Maximum loan

1. Regarding business entities, the maximum loan granted to 1 project is up to VND 1 billion and does not exceed VND 50 million for 1 employee having job.

2. Regarding employees, the maximum loan is VND 50 million.

Article 25. Loan term

The loan term does not exceed 60 months. The specific loan term shall be agreed between the VBSP and the borrower according to the fund sources, business cycle and solvency of the borrower.

Article 26. Loan interests

1. With regard to those prescribed in Clause 1 Article 12 of the Law on employment, the loan interest shall equal (=) the loan interest applicable to poor households in each period as prescribed by the Prime Minister.

2. With regard to those prescribed in Clause 2 Article 12 of the Law on employment, the loan interest shall equal (=) 50% of the interest prescribed in Clause 1 of this Article.

3. The overdue interest shall equal (=) 130% of the loan interest prescribed in Clause 1 and Clause 2 of this Article.

Article 27. Collateral

Regarding the loans of VND 50 million or greater from the Fund, the business entity must put up their property as collateral as prescribed by law.

Article 28. Application for loans

1. Each borrower shall submit an application for loans to a branch/transaction office of VBSP (hereinafter referred to as the local VBSP) where the project is executed.

2. Application for loans:

a) An application submitted by an employee consists of:

- An application form for loans certified by the People’s Committee of commune where the borrower has legal residence;

- A copy of the certification of priority entity prescribed in Point b Clause 2 Article 12 of the Law on employment (if any).

b) An application submitted by a business entity consists of:

- A loan proposal certified by the People’s Committee of the commune where the project is executed;

- A copy of any in the following documents: certificate of enterprise registration, certificate of cooperatives registration, cooperation contract, or certificate of business household registration;

- A copy of the certification of priority entity prescribed in Point a Clause 2 Article 12 of the Law on employment (if any);

- Other documents related to collateral (if any).

3. The Ministry of Labor, War Invalids and Social Affairs shall provide guidance on Clause 2 of this Article.

Article 29. Assessment and approval for application for loans

1. With respect to a project for which the fund source is managed by the People's Committee of province:

a) Within 10 working days, from the date on which the application for loans is received, the local VBSP shall assess and submit it to the President of People’s Committee of district where the project is executed for approval;

b) Within 05 working days, from the date on which the application for loans is received, the President of People’s Committee of district where the project is executed shall consider approving. If the application is rejected, they must provide explanation in writing for the local VBSP.

2. With respect to a project for which the fund source is managed by an organization in charge:

a) Within 10 working days, from the date on which the application for loans is received, the local VBSP shall assess and submit it to the Head of provincial agency of the organizations in charge for approval;

b) Within 05 working days, from the date on which the application for loans is received, the Head of provincial agency of the organizations in charge shall consider approving. If the application is rejected, they must provide explanation in writing for the local VBSP.

Article 30. Recovery and use of loans

1. Each local VBSP and relevant agencies shall recover principal and interest of the due loans, the borrower may agree with the bank about the repayment of loan before its maturity date. During the loan period, if any loan amount is used improperly or the employment targets are not achieved according to the loan proposal, the VBSP, Service of Labor, War Invalids and Social Affairs, Committee division of Labor, War Invalids and Social Affairs, or the organization in charge shall request the agency approving the application for loan to recover the loan before the maturity date.

2. The VBSP shall use the recovered loans to re-grant loans in order to avoid idle capital.

3. In exceptional circumstances that require adjustment to the fund sources between the local governments, the organizations in charge or VBSP shall report the Ministry of Labor, War Invalids and Social Affairs for consideration. The VBSP shall transfer the fund sources as decided by the Ministry of Labor, War Invalids and Social Affairs.

Article 31. Use of loan interests

1. The loan interests shall be used as follows:

a) Build up a reserve fund;

b) Cover expenditures on lending, recovery of loans, inspection and supervision;

c) Build up the Fund.

2. Loan interests shall be used to pay agencies cooperating with VBSP in assessment, disbursement, and recovery of loans.

3. The Ministry of Finance shall provide guidance on use of loan interests as prescribed in this Article.

Article 32. Settlement of risk loans

Settlement of risk loans shall comply with regulations on settlement of risk debts at banks for social policies prescribed by the Government.

Article 33. Formulation and approval for plans for loans and employment targets

1. Every year, each People's Committee of province and each central agency of organizations in charge shall formulate a plan for loans and employment targets and send it to the Ministry of Labor, War Invalids and Social Affairs. The Ministry of Labor, War Invalids and Social Affairs shall send the final plan to the Prime Minister for decision.

2. Every year, the Ministry of Labor, War Invalids and Social Affairs shall provide the approved plan for loans and employment targets for local governments, organizations in charge and banks for social policies.

Article 34. Fund transfer

1. According to cost estimates of government budget in terms of the fund source additionally financed for support for job creation, maintenance and extension, the Ministry of Finance shall finance to the VBSP. The VBSP shall transfer the fund to local VBSP to implement the approved plan.

2. If the VSBP mobilizes fund source to grant loans for job creation, maintenance and extension, it shall be covered interest difference.

Section 3. GRANTING CONCESSIONAL LOANS TO GUEST WORKERS

Article 35. Rules for granting loans

1. Eligible borrowers.

2. Fund preservation.

3. Simple and transparent procedures.

Article 36. Maximum loan

The maximum loan equals (=) 100% of expenses for overseas working according to the contract concluded between the worker and the service provider.

Article 37. Collateral

Regarding the loans of VND 50 million or greater, the business entity must put up their property as collateral to apply for concessional loans for guest worker program.

Article 38. Loan term

The loan term shall not exceed the guest worker’s working time written on the contract concluded between the worker and the service provider.

Article 39. Loan interests

1. The loan interest for the guest workers shall equal (=) the loan interest applicable to poor households in each period as prescribed by the Prime Minister.

2. The overdue interest shall equal (=) 130% of the loan interest prescribed in Clause 1 of this Article.

Article 40. Application for loans

1. Each guest worker wishing to request concessional loans shall submit an application for loans to the local VSBP in their residence.

2. An application for loans shall include:

a) An application for loans as prescribed by the Ministry of Labor, War Invalids and Social Affairs which certifies the legal residence of the worker by the People’s Committee of the commune;

b) A copy of the certification of priority entities prescribed in Clause 2 Article 11 of this Decree;

c) A copy of the contract concluded between the worker and the service provider;

d) A copy of unexpired passport of the worker;

dd) Other documents related to collateral (if any).

Article 41. Assessment and approval for application for loans

Within 10 working days, from the date on which the application for loans is received, the local VSBP shall carry out the assessment and approval. If the application is rejected, they must provide explanation in writing for the worker.

Article 42. Recovery of loans

1. The VBSP shall recover principal and interest of the due loans, the borrower may agree with the bank about the repayment of loan before its maturity date.

2. Regarding service provider holding salaries of the guest workers, the service provider, the workers and the VSBP may agree to use the workers’ salaries to repay the loans.

Article 43. Use of loan interests

1. The loan interests shall be used as follows:

a) Appropriate a reserve fund;

b) Provide for expenditures on lending and recovery of loans;

c) Add capital for the Fund.

2. The Ministry of Finance shall provide guidance on use of loan interests as prescribed in Clause 1 of this Article.

Article 44. Settlement of risk debts

Settlement of risk loans applicable to guest workers shall comply with regulations on settlement of risk debts at the VSBP prescribed by the Government.

Article 45. Formulation and approval for plans for loans

1. Every year, each People's Committee of province shall formulate a plan for concessional loans applicable to guest workers and send it to the Ministry of Labor, War Invalids and Social Affairs. The Ministry of Labor, War Invalids and Social Affairs shall send the final plan to the Prime Minister for decision.

2. Every year, the Ministry of Labor, War Invalids and Social Affairs shall provide the approved plan for loans for the guest workers and the VSBP.

Article 46. Fund transfer

1. According to cost estimates of government budget in terms of the fund source additionally financed for concessional loans applicable to guest workers, the Ministry of Finance shall finance to the banks for social policies. The VBSP shall transfer the fund to local VBSP to implement the approved plan.

2. If the VSBP mobilizes fund source to grant concessional loans for guest workers, it shall be covered interest difference.

Chapter VI

IMPLEMENTATION

ARTICLE 47. EFFECT AND IMPLEMENTATION

1. This Decree comes into force from September 1, 2015.

2. The following legislative documents shall be annulled from the effective date of this Decree: Decision No. 71/2005/QD-TTg dated April 5, 2005 of the Prime Minister on management and administration of National Employment Fund and Decision No. 15/2008/QD-TTg dated January 23, 2008 of the Prime Minister on amendments to Decision No. 71/2005/QD-TTg; regulations on supporting demobilized soldiers in vocational training prescribed in Decision No. 121/2009/QD-TTg dated October 9, 2009 of the Prime Minister on operation of vocational training facilities affiliated to the Ministry of National Defense and policies on supporting demobilized soldiers in vocational training; Article 4 of Decree No. 03/2014/ND-CP dated January 16, 2014 of the Government on guidelines for the Labor Code in terms of employment.

3. The projects funded by National Employment Fund that are approved before the effective date of this Decree shall be carried out according to the approved project.

4. The programs or projects for supporting guest workers that are approved before the effective date of this Decree shall be carried out according to the approved programs/project.

5. Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, the Presidents of the People’s Committees of central-affiliated cities and provinces and relevant agencies, enterprises, organizations or individuals shall implement this Decree./.