Decree 63/2015/ND-CP stipulates policies for redundant employees when rearranging single-member limited liability companies (LLC) owned by the State.
Article table of contents
At the time a single-member limited liability company (solely owned by the State) undergoes restructuring (through equitization, sale; conversion to a multi-member limited liability company; conversion to a public service provider; merger, consolidation, division, separation or dissolution, bankruptcy) and fails to arrange jobs for the redundant employees who are working at that time, the company must have support policies to ensure the legitimate rights and interests of the employees.
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Support policies for each type of employee and situation are regulated as follows:
Redundant employees hired for the last time before April 21, 1998, or before April 26, 2002
- Male redundant employees aged from 55 to 59 and female employees aged from 50 to 54 with 20 years or more of social insurance contributions, besides enjoying pensions as prescribed in the Law on Social Insurance, are also entitled to the following policies:- Not subject to pension reduction for early retirement;- An allowance of 3 months' salary for each year (full 12 months, excluding odd months) of early retirement compared to the provisions of the Law on Social Insurance (for those retiring before January 1, 2016, and retiring from January 1, 2016, onwards);- Support of 1 month’s statutory pay rate as stipulated by the Government of Vietnam for each year of work with social insurance contributions.- Male redundant employees aged from over 59 to under 60 and female employees aged from over 54 to under 55 with 20 years or more of social insurance contributions are entitled to pensions as prescribed in the Law on Social Insurance and are also entitled to the following policies:- Not subject to pension reduction for early retirement;- Support of 0.5 month’s statutory pay rate as stipulated by the Government of Vietnam for each year of work with social insurance contributions.- Employees of retirement age but lacking up to 6 months of social insurance contributions to be eligible for a pension shall have the State pay a one-time fee for the missing months into the retirement and survivorship fund to settle the pension. The amount paid for the missing months is equal to the total social insurance contributions of the month immediately preceding the cessation of work, borne by the employee and the employer, multiplied by the number of missing months.- Redundant employees who do not meet the eligibility criteria for the above policies shall terminate their labor contracts and be entitled to the following policies:- Severance/job loss allowance according to the provisions of the Labor Code;- Support of an amount for each year of service at the company undergoing restructuring based on the tenure ranging from less than 15 years to over 25 years.
Redundant employees hired for the last time from April 21, 1998, or from April 26, 2002, onwards
Entitled to severance allowance and job loss allowance as prescribed in Article 48 and Article 49 of the Labor Code.
Representative of the company's capital
- The representative of the company's capital who was hired for the last time before April 21, 1998, or before April 26, 2002, and hired for the last time from April 21, 1998, or from April 26, 2002, onwards, is entitled to corresponding policies as mentioned for the employees above.- The representative of the company's capital is entitled to severance allowance paid by the enterprise in which the company has invested capital, for the period during which the representative of the company's capital actually worked at that enterprise.
See detailed regulations at Decree 63/2015/ND-CP effective from September 15, 2015.
