Do enterprises that change in personnel rearrangement need to develop labor utilization plans in Vietnam?
Do enterprises that change in personnel rearrangement need to develop labor utilization plans in Vietnam? What do contents of labor utilization plan in Vietnam comprise?
Hello, my business is planning to personnel rearrange due to changing business lines, please ask when personnel rearrangement, do you need to develop a labor utilization plan?
1. Do enterprises that change in personnel rearrangement need to develop labor utilization plans in Vietnam?
Pursuant to Article 42 of the 2019 Labor Code, obligations of the employer in case of changes in structure, technology or changes due to economic reasons are as follows:
1. Changes in structure and technology include:
a) Changes in the organizational structure, personnel rearrangement;
b) Changes in processes, technology, equipment associated with the employer’s business lines;
c) Changes in products or product structure.
2. Changes due to economic reasons include:
a) Economic crisis or economic depression;
b) Changes in law and state policies upon restructuring of the economy or implementation of international commitments.
3. If the change affects the employment of a large number of employees, the employer shall develop and implement a labor utilization plan prescribed in Article 44 of this Labor Code. In case of new vacancies, priority shall be given to retraining of the existing employees for continued employment.
4. If a change due to economic reasons threatens to cause a large number of employees to lose their jobs, the employer shall develop and implement a labor utilization plan as prescribed in Article 44 of this Code.
5. In case the employer is unable to create provide employment and has to resort to dismissing employees, the employer shall pay them redundancy allowances in accordance with Article 47 of this Labor Code.
6. The dismissal of employees in the cases mentioned in this Article shall only be implemented after a discussion with the representative organization of employees (if any) and after giving prior notice of 30 days to the People’s Committee of the province and the employees.
Thus, changes in personnel rearrangement are considered a change in structure and technology. Therefore, if the personnel rearrangement of your enterprise affects the employment of many employees, the enterprise must develop and implement a labor utilization plan in Vietnam.
2. What do contents of labor utilization plan in Vietnam comprise?
In Article 44 of the Labor Code 2019, there are provisions on the labor utilization plan as follows:
1. A labor utilization plan shall have the following contents:
a) The names and number of employees to be retained, employees to be retrained for further employment, and employees to be working on part-time basis;
b) The names and number of employees to retire;
c) The names and number of employees whose employment contracts have to be terminated;
d) Rights and obligations of the employer, employee and relevant parties regarding implementation of the labor utilization plan;
dd) The measure and financial sources to implement the plan.
2. During development of the labor utilization plan, the employer shall discuss with the representative organization of employees (if any). The labor utilization plan shall be made available to the employees within 15 days from the day on which it is adopted.
According to this Article, if the personnel rearrangement of your enterprise affects the employment of many employees, your enterprise must develop a labor utilization plan in Vietnam with the contents as prescribed above.
Best Regards!
