Vietnam: Enterprises shall develop a plan to rearrange the existing workforce according to these contents

Enterprises shall develop a plan to rearrange the existing workforce according to these contents (Illustration)

Article 18 of Decree 128/2014/ND-CP stipulates that upon receiving notification of the sale of the enterprise, the Enterprise Renewal Committee at the business is responsible for carrying out the following tasks:

1. Prepare all legal documents, unsettled contracts, certificates of ownership, and rights to use assets and land of the enterprise.

2. Inventory and determine the quantity of assets currently held by the enterprise, business segments, evaluate the current status, and classify assets categorized for continued use, liquidation, or sale.

3. Compare and categorize receivables and payables; prepare a list of creditors and the amounts owed, as well as the amounts receivable, distinguishing between recoverable and non-recoverable debts, and propose measures for resolution.

4. Prepare the latest quarterly financial report; develop an asset, finance, and debt resolution plan according to the principles stipulated in Articles 10 and 11 of Decree 128.

5. Develop a plan for arranging the existing employees of the enterprise according to the following contents:

• List all current employees of the company.
• List employees moving to work at the new enterprise, employees retrained to continue working at the new enterprise.
• List employees retiring.
• List employees whose labor contracts need to be terminated.

6. Facilitate potential buyers in inspecting and accessing documents as stipulated in Clause 1, Article 7 of Decree 128.

7. Handle assets, finance, debts, and labor according to the plan approved by the competent authority and as per the enterprise sale contract.

8. Sign contracts for valuation consultancy and organize the enterprise auction.

9. Prepare the financial report of the enterprise at the transfer time for the buyer and handle financial matters arising from the valuation to the transfer time.

10. Hand over assets, records, and related documents to the buyer as agreed in the enterprise sale contract.

See details at Decree 128/2014/ND-CP effective from 01/3/2015.

Ty Na

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