03 groups subject to downsizing in Vietnam under the latest regulations

03 groups subject to downsizing in Vietnam under the latest regulations (Internet image)

In this regard, LawNet responded as follows;

1. 03 groups subject to downsizing in Vietnam under the latest regulations

According to Article 2 of Decree 29/2023/ND-CP, the groups subject to downsizing include:

- Group 1: Cadres, civil servants, and public employees; Commune-level cadres, civil servants, and people working under indefinite-term labor contracts in administrative agencies may apply the same regimes and policies as civil servants according to the Government's regulations if they fall into one of the following cases:

+ Redundancy due to the review and rearrangement of organizational apparatus and personnel according to decisions of competent authorities or redundancies due to the arrangement of apparatus and personnel by public non-business units to implement the autonomy mechanism;

+ Redundancy due to rearrangement of administrative units at district and commune levels according to decisions of competent authorities;

+ Redundancies due to the restructuring of cadres, civil servants, and public employees according to job position, but unable to arrange or arrange another job, but the individual voluntarily reduces the payroll and is approved by the agency, organization, or unit directly under his/her management;

+ Having not attained the training level according to the prescribed professional standards for the current position but having no other suitable job position to arrange and cannot be re-trained for standardization in professional skills or having been given another job placement agency but the individual voluntarily reduces the payroll and is approved by the agency, organization, or unit directly managing;

+ Having 02 consecutive years at the time of downsizing consideration, the cadre, civil servant, or 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 other suitable jobs; in the year immediately preceding or in the year in which the downsizing is considered, the quality is rated at the level of task completion or below, but the individual voluntarily reduces the payroll and is approved by the agency, organization, or unit directly under his/her management;

+ Having 02 consecutive years at the time of consideration for downsizing, and each year having the total number of days off work equal to or higher than the maximum number of days off due to sickness as prescribed in Clause 1, Article 26 of the Law on Social Insurance, certified by the Social Insurance agency to pay sickness allowance in accordance with current law;

In the year immediately preceding or in the year in which payroll reduction is considered, with the total number of days off work equal to or higher than the maximum number of sick leave days as prescribed in Clause 1, Article 26 of the Law on Social Insurance, certified by the Social Insurance agency for payment of sickness allowance in accordance with current law, the individual voluntarily reduces the payroll and is directly managed by the agency, organization, or unit;

+ Cadres, civil servants, and public employees who lead and manage to resign from holding positions or titles due to organizational arrangement, administrative units according to decisions of competent authorities; individuals who voluntarily reduce payrolls and are approved by agencies, organizations, and units directly under their management;

+ Cadres, civil servants, and public employees who are in the period of being disciplined but not yet to the point of being dismissed or forced to quit according to the provisions of law at the time of consideration for downsizing, and individuals who voluntarily carry out downsizing, with the consent of their direct management agencies, organizations, or units.

- Group 2: Persons working under the regime of labor contracts with indefinite terms perform professional jobs on the list of job positions, professional titles, and general professional titles in public non-business units according to the Government's regulations.

- Group 3: Those who do part-time activities at the commune level who have a surplus due to the arrangement of commune-level administrative units and those who work part-time in villages and residential groups who have a surplus due to the arrangement of villages or residential groups when arranging the commune-level administrative units are on leave for a period of 12 months from the date of issuance of the arrangement decision of the competent authority.

2. What are the principles for downsizing according to Decree 29/2023/ND-CP?

Applying Decree 29/2023/ND-CP on downsizing for other subjects as follows:

- People working in mass associations assigned by the Party or State and whose funds are guaranteed by the State to perform tasks assigned by the State in one of the cases specified at Points a, dd and e, Clause 1, Article 2 of Decree 29/2023/ND-CP.

- The company president, the chairman of the Members' Council, members of the Members' Council, the general director, the director, the deputy general director, the deputy director, the chief accountant, and the controller (excluding the general director, director, deputy general director, deputy director, and chief accountant working under the labor contract regime) in single-member limited liability companies with 100% charter capital held by the State (including: parent companies of state economic groups; parent companies of state corporations; parent companies in the group of parent companies - subsidiaries; independent companies) due to:

To equitize, sell the entire enterprise, merge, consolidate, split, dissolve, go bankrupt, transform into a limited liability company with two or more members, or transform into a public non-business unit under a decision of a competent authority;

Directors, deputy directors, and chief accountants of state-owned forestry and agricultural companies are redundant due to reorganization in accordance with the law.

- Cadres, civil servants, and public employees appointed by competent authorities to act as representatives of the excess capital contributed by the enterprise due to the re-arrangement of the enterprise according to the decision of the competent authority.

- Cadres, civil servants, and public employees who are appointed by competent authorities to hold leadership and management positions in state financial funds that are left over from the surplus budget due to the rearrangement of such funds according to decisions of competent authorities.

- For the redundant district- and commune-level cadres, civil servants, and public employees due to the rearrangement of administrative units at district and commune levels in the period of 2019–2021 that have not yet been resolved, the Presidents of the People's Committees of the provinces and centrally-run cities shall apply the provisions of Clause 1, Article 9 of Decree 29/2023/ND-CP to settle regimes and policies for these cases. Funding for this policy is provided by the state budget.

(Article 18 of Decree 29/2023/ND-CP)

Nguyen Ngoc Que Anh

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