Reduction of Personnel Due to Structural or Technological Changes: Is Notification to the Department of Labor, Invalids, and Social Affairs Required?

Clause 3, Article 13 of Decree 05/2015/ND-CP stipulates the cases of structural, technological changes and economic reasons as follows:

In the event of a structural or technological change or for economic reasons that affect employment or risk of job loss, leading to the dismissal of two or more employees, the employer must fulfill the obligations as stipulated in Article 44 of the Labor Code.

Referencing Article 44 of the Labor Code 2012, the regulations are as follows:

- In cases of structural or technological changes that impact the employment of several employees, the employer is responsible for developing and implementing a labor utilization plan according to Article 46 of this Code; if there are new job positions, priority should be given to retraining employees for continued employment.

In the case where the employer cannot resolve new employment and must lay off employees, severance pay must be provided to those employees in accordance with Article 49 of this Code.

- In cases where for economic reasons, many employees are at risk of job loss or layoff, the employer must develop and implement a labor utilization plan in accordance with Article 46 of this Code.

In the case where the employer cannot resolve the employment issue and must lay off employees, severance pay must be provided to those employees in accordance with Article 49 of this Code.

- The dismissal of multiple employees as stipulated in this Article can only be carried out after consultation with the representative organization of the labor collective at the workplace and 30 days prior notice to the provincial labor authority.

Therefore, based on the above regulations, if your company undergoes structural or technological changes leading to the dismissal of 30 employees, notification must be given to the Department of Labor, War Invalids and Social Affairs.

Respectfully!