Vietnam: Principles and policies for employees and individuals holding leadership and management positions

Principles and policies for employees and individuals holding leadership and management positions (Illustration)

Specifically, Article 17 of Decree 128/2014/ND-CP specifies the principles and policies for employees and individuals holding leadership and management positions as follows:

• For employees who continue to work at the new enterprise:

  • The sold enterprise is responsible for calculating and paying severance allowances for the period the employee worked at the enterprise up to the point of signing the sale contract;
  • A new labor contract must be executed when transitioning to working at the new enterprise.

• Employees eligible for pension benefits are to be provided according to the laws on social insurance and other related labor law benefits.

• Employees who terminate their labor contracts are entitled to unemployment and severance benefits according to labor laws or policies for redundant workers when reorganizing single-member limited liability companies owned by the state.

• The Chairperson and members of the Members' Council or Company Chairperson, Supervisors, General Directors (Directors), Chief Accountants, and those appointed as representatives of the sold enterprise’s capital in other enterprises will have their jobs arranged based on a case-by-case review by the Ministry, Provincial People's Committee, or Parent Company’s Members' Council. If no job arrangement is possible or if termination is requested, the provisions of the Law on Cadres and Civil Servants will apply to executives and managers of single-member limited liability companies owned by the state and representatives of state capital in enterprises with state contributions.

For full details, refer to Decree 128/2014/ND-CP which took effect on March 1, 2015.

Ty Na

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