Which Cases Allow Re-Hiring of Downsized Personnel Under Current Regulations?
When are downsized employees rehired? Do they have to return the severance payment?
The principles of downsizing as stated in Article 3 of Decree 29/2023/ND-CP are as follows:
Principles of Downsizing
1. Ensure the leadership of the Communist Party, promote the supervisory role of political-social organizations, and the people in the implementation process of downsizing.
2. Link downsizing with the reorganization of the apparatus towards streamlined, effective, and efficient operation, and the restructuring and improvement of the quality of officials and public employees according to the job positions, suitable to the autonomy mechanism of the agency, organization, or unit.
3. Ensure the principles of democratic centralism, objectivity, fairness, publicity, transparency, and compliance with the law.
4. Ensure prompt and full payment of downsizing policies as regulated by law, and ensure the efficient use of the state budget.
5. The head must take responsibility for the implementation results of downsizing in the agency, organization, or unit under their management authority.
6. If the downsized individuals are elected or rehired into agencies, organizations, or units funded by the state budget within 60 months from the date of downsizing, they must repay the severance payment received to the agency, organization, or unit that paid the severance.
Downsized individuals who are elected or rehired within 05 years (60 months) from the date of downsizing must return the severance payment.
Therefore, if downsized individuals are elected or rehired after this period (after 05 years), they will not have to repay the severance payment.
When are downsized individuals rehired according to current regulations?
How is the time for calculating severance payment determined?
Based on regulations in Clause 3, Article 10 of Decree 29/2023/ND-CP, Clause 4, Article 10 of Decree 29/2023/ND-CP, and Clause 5, Article 10 of Decree 29/2023/ND-CP, the time for calculating severance payments is determined as follows:
(1) The point in time used as a basis to calculate the eligible age for early retirement policies:
The first day of the month following the birth month of the individual; In cases where the individual's records do not specify the day and month of birth within the year, January 1 of the individual's birth year shall be used.
(2) Time to calculate downsizing severance policy
- Equivalent to the total working time with compulsory social insurance contributions (according to the social insurance number of each person) but yet to receive termination allowances or one-time social insurance policies or demobilization policies.
- If the total time for calculating the allowance includes odd months, it shall be rounded according to the principle: From 01 month to 06 months counted as 1/2 year and the allowance equal to 1/2 year; more than 06 months to less than 12 months rounded to 01 year.
(3) For the early retirement policy for redundant commune-level officials due to the reorganization of commune-level administrative units with an age difference of up to 10 years and at least above 05 years younger than the retirement age:
The time to calculate the early retirement allowance is determined as follows:
If there are odd months, they shall be rounded according to the principle: from 01 month to 06 months counted as 1/2 year and the allowance equal to 1/2 year; from more than 06 months to less than 12 months rounded to 01 year.
What are the funding sources for implementing downsizing?
According to the regulations in Article 11 of Decree 29/2023/ND-CP as follows:
Funding sources for downsizing
1. The funding for addressing downsizing policies for individuals specified in Clauses 1 and 3, Article 2 of this Decree is provided by the state budget.
For individuals who are public employees in self-financed public service providers; public service providers that ensure regular and investment expenditures under the regulations of the Government of Vietnam, the funding for addressing downsizing policies shall be sourced from the unit’s operating revenues.
For individuals working under labor contract policies who are subject to policies as officials under the regulations of the Government of Vietnam, the funding for addressing downsizing policies shall be sourced from the regular budget of the agency or organization.
2. The funding for addressing downsizing policies for individuals specified in Clause 2, Article 2 of this Decree shall be sourced from the unit's regular budget or from the unit’s operating revenues.
3. The funding for addressing downsizing policies for individuals specified in Clause 1, Article 18 of this Decree shall be sourced from the regular budget of the Association, including the state budget support for regular expenditures, membership fees, and other legal financial sources as prescribed by law.
4. The funding for addressing downsizing policies for individuals specified in Clauses 2 and 3, Article 18 of this Decree shall be sourced from the policies for redundant workers of that enterprise upon equitization or reorganization according to the law.
5. The funding for addressing downsizing policies for individuals specified in Clause 4, Article 18 of this Decree shall be sourced from the regular budget of the state financial fund outside the budget.
The funding for implementing downsizing is determined from 05 sources according to the regulations mentioned above.
Decree 29/2023/ND-CP took effect on July 20, 2023. The policies in Decree 29/2023/ND-CP will be applied until December 31, 2030.
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