Hanoi-Vietnam: Regulations on downsizing policies for officials and public employees

On November 02, 2018, the Vietnam Ministry of Home Affairs issued Document 01/VBHN-BNV to integrate Decree 108/2014/ND-CP and Decree 113/2018/ND-CP on the downsizing policies, facilitating easy reference and understanding of this matter.

More details may be found in CONSOLIDATED DOCUMENT 01/VBHN-BNV

People subject to the downsizing

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 the training standards required for the current job position with no suitable position available for arrangement and unable to undergo retraining for professional standardization or being assigned to another job by the agency, voluntarily implementing personnel streamlining and being approved by the supervisory agency or unit;

+ They have a training specialization incompatible with the current job position leading to limiting the ability to complete assigned tasks, being unable to arrange other work or being assigned to another job by the agency, voluntarily implementing personnel streamlining, and being approved by the supervisory agency or unit;

+ Officials, whoare classified and evaluated as meeting the task but with limited capability for 02 consecutive years at the time of downsizing consideration or meeting the task but with limited capability for 01 year and not meeting the task but being unable to arrange suitable work for 01 year or not meeting the task in the year just before the downsizing consideration, voluntarily apply for downsizing  and being approved by the supervisory agency or unit;

+ For 02 consecutive years at the time of downsizing consideration public employee has 01 year classified as meeting the task and 01 years not meeting the task but unable to arrange suitable work or not meeting the task in the year just before the downsizing consideration voluntarily implementing personnel streamlining and being approved by the supervisory agency or unit.

+ For 02 consecutive years at the time of downsizing consideration with a total number of sick leave days equal to or higher than the maximum number of sick leave days stipulated in Clause 1, Article 26 of the Law on Social Insurance, certified by the health facility and the Social Insurance agency paying the sick leave allowance according to current legal regulations, or in the year just before the personnel streamlining review with a total number of sick leave days equal to or higher than the maximum number of sick leave days stipulated in Clause 1, Article 26 of the Law on Social Insurance, voluntarily implementing personnel streamlining and being approved by the supervisory agency or unit.

+ Leading and managerial officials and public employees relinquish positions due to organizational restructuring according to decisions from competent authorities, voluntarily implementing personnel streamlining and being approved by the supervisory agency or unit.

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 170/2004/ND-CP on restructuring, innovating and developing State forestry plantations dated September 22, 2004 of the Government.

5. Those who are officials assigned by competent authorities to manage or represent the state capital in state-owned enterprises that are redundant due to the restructuring of that enterprise.

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

7. Those who were Vietnamese officials and public employees assigned by competent authorities to work at associations with allocated payroll and state budget supporting salary payment, if they fall under one of the cases stipulated in Points d, e, g, Clause 1, Article 6 of Decree108/2014/ND-CP.

03 cases not considered for downsizing in Vietnam

- Those who are in the period of sickness certified by a competent health authority;

- Vietnamese officials and public employees and workers who are pregnant, on maternity leave, or raising children under 36 months old;

- Those who are undergoing disciplinary review or criminal investigation.

Policy on early retirement

Case 1: people subject to the downsizing aged 50 to 53 (male) or 45 to 48 (female), with 20 years or more of social insurance premium payment, including 15 years in heavy, hazardous, dangerous occupations or places with regional allowance coefficient of 0.7 or higher, in addition to receiving a pension according to social insurance law, are entitled to the following benefits:

- Not having their pension rate reduced due to early retirement;

- Receiving an allowance of 03 months' salary for each year of early retirement compared to the minimum age stipulated in Point b, Clause 1, Article 54 of the Law on Social Insurance;

- Receiving an allowance of 05 months' salary for the first 20 years of service with social insurance premium payment. From the 21st year onwards, each working year with social insurance premium payment is entitled to an allowance of 0.5 months' salary.

Case 2: people subject to the downsizing aged 55 to 58 (male) or 50 to 53 (female), with 20 years or more of social insurance premium payment, are entitled to a pension according to social insurance law and the following benefits:

- Not having their pension rate reduced due to early retirement;

- Receiving an allowance of 03 months' salary for each year of early retirement compared to the age stipulated in Point a, Clause 1, Article 54 of the Law on Social Insurance;

- Receiving an allowance of 05 months' salary for the first 20 years of service with social insurance premium payment. From the 21st year onwards, each working year with social insurance premium payment is entitled to an allowance of 0.5 months' salary.

Case 3: people subject to the downsizing aged over 53 to under 55 (male) or over 48 to under 50 (female), with 20 years or more of social insurance premium payment, including 15 years in heavy, hazardous, dangerous occupations or places with regional allowance coefficient of 0.7 or higher, are entitled to a pension according to social insurance law and not having their pension rate reduced due to early retirement.

Case 4: people subject to the downsizing aged over 58 to under 60 (male) or over 53 to under 55 (female), with 20 years or more of social insurance premium payment, are entitled to a pension according to social insurance law and not having their pension rate reduced due to early retirement.

Immediate severance allowance

People subject to the downsizing under 53 years old (male) or under 48 years old (female) or aged 58 years (male), under 53 years (female) who do not qualify for the early retirement policy as stipulated are entitled to the following allowances if they resign immediately:

- Receiving an allowance of 03 months' current salary to seek employment;

- Receiving an allowance of 1.5 months' salary for each working year with social insurance premium payment.

- Thuy Phu -

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