Cases of people exempt from downsizing in Vietnam

Cases of people exempt from downsizing in Vietnam (Internet image)

1. What is downsizing?

“Downsizing": a process of evaluating, classifying and making those failing to satisfy job requirements redundant, and settle severance packages to laid-off employees. according to Clause 2, Article 3 of Decree 108/2014/ND-CP.

2. People exempt from downsizing in Vietnam

People exempt from downsizing in Vietnam according to Article 7 of Decree 108/2014/ND-CP include:

-  Workers who are on sick leave certified by the competent medical facilities.

- Officials, public employees and workers who are in pregnancy, on maternity leaves or have babies under 36 months.

- Workers during their disciplinary probation or criminal prosecution.

3. People subject to the downsizing in Vietnam

According to Article 6 of Decree 108/2014/ND-CP (amended in Decree 113/2018/ND-CP and Decree 143/2020/ND-CP):

(1) Officials and public employees under payrolls, and officials of communes receiving salaries from the State budget or salary budget of the public service providers (hereinafter referred to as “official and public employee”) shall be subject to the downsizing if:

- They are made redundancy due to the restructuring of organizations or personnel upon requests of the competent authority of the Communist Party or the State; or the conversion of public service providers into autonomous ones;

- They are made redundancy due to the restructuring of officials, and public employees according to their positions and failure to offer new jobs;

-  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;

Other agencies or units may arrange for other jobs, but individuals voluntarily agrees to be downsized and with the permission of the agencies or units directly managing them. 

- Their majors are irrelevant to the current jobs resulting in poor performance but their organizations are unable to appoint them to another position or other jobs are arranged by the agency or unit, but the individual voluntarily agrees to be downsized and is approved by the agency or unit directly managing it.

- Having 02 consecutive years at the time of downsizing consideration, the official has 01 year of quality rating at the level of task completion and 01 year of failure to complete the task but cannot arrange another job in accordance with the law;

Or failing to complete the tasks in the preceding year at the time of downsizing consideration, but the individual voluntarily performs the downsizing and is approved by the agency or unit directly under his/her management;

- Having 02 consecutive years at the time of downsizing consideration, the public employee has 01 year of quality rating at the level of task completion and 01 year of failure to complete the task but cannot arrange another job in accordance with the law;

Or failing to complete the tasks in the preceding year at the time of downsizing consideration, but the individual voluntarily performs the downsizing and is approved by the agency or unit directly under his/her management;

- Having two consecutive years at the time of downsizing consideration, in each year the total number of days off work is equal to or higher than the maximum number of days off due to illness according to the provisions of Clause 1 and Article 26 of the Law on Social Insurance; certified by the medical examination and treatment facility and by the Social Insurance agency that pays the sickness allowance as prescribed by law;

Or in the preceding year at the time of consideration for downsizing, the total number of days off work is equal to or higher than the maximum number of days off due to illness as prescribed in Clause 1 and Article 26 of the Law on Social Insurance;

There is confirmation from the medical examination and treatment facility and the social insurance agency that pays sick benefits in accordance with the law, but the individual voluntarily agrees to be downsized and is approved by the agency or unit directly managing it.

- Cadres, civil servants, and public employees who lead and manage must resign from their positions due to organizational changes made by competent agencies, voluntarily reduce payrolls, and receive approval from agencies and units with which Direct Management is in agreement. 

(2) Redundancies of permanent employees of administrative authorities and public services providers that have yet to grant the autonomy (hereinafter referred to as autonomous public service providers) due to restructuring.

(3) Redundancies of public employees and permanent employees of autonomous public service providers due to restructuring.

(4) Redundancies of Chairman of companies, Board members, Directors General, Deputy Directors General, Directors, Deputy Directors, Chief accountants , controllers of state-owned single member limited liability companies due to privatization, transfer, sale, dissolutions, merger, amalgamation, division, separation, bankruptcy

Or conversion into at least two member limited liability companies or public service provider according to the Decision of competent state authorities;

Redundancies of Directors, Deputy Directors, Chief Accountants of State plantations or farms due to restructuring under the Decree of 118/2014/ND-CP on restructuring, innovating and developing State forestry plantations.

(5) Those who are cadres and civil servants appointed by competent agencies to participate in the management or authorized representatives of the state capital portion in state-owned enterprises which is redundant due to the restructuring of the enterprise.

(6) Employees under payrolls of associations are on the list of redundancies for restructuring according to Decisions of competent authorities.

(7) Those who are already cadres, civil servants and public employees who are transferred by competent agencies to work at associations are assigned payrolls and are supported by the state budget to pay salaries if they belong to one of the following groups: the case specified at Points dd, e, g, Clause 1, Article 6 of Decree 108/2014/ND-CP.

Quoc Dat

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