People subject to the downsizing under the latest regulations in Vietnam

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

1. People subject to the downsizing in Vietnam

People subject to the downsizing in Vietnam include:

- 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;

+ Not having reached the training level according to the professional standards prescribed for the current position, but there is no other suitable job position to arrange, and it is not possible to arrange re-training to standardize professional skills or is voluntarily reduced by another job placement agency or individual and approved by the agency or unit directly managing it.

= Having a training major that is not suitable for the job position currently held, so the capacity to complete the assigned work is limited, but the employee cannot arrange another job or get another job placement agency or individual voluntarily to reduce the payroll and get the consent of the agency or unit directly managing it.

= For 02 consecutive years at the time of consideration for downsizing payroll, cadres and civil servants are classified, assessed, and classified as having completed a task but still having limited capacity, or they have 1 year to complete the task but still have limited capacity, and 1 year of failure to complete the task but cannot arrange another suitable job, or they failed to complete the tasks in the preceding year at the time of downsizing consideration, in which case the individual voluntarily performs the downsizing and is approved by the agency or unit directly managing it.

= Having 02 consecutive years at the time of downsizing consideration, the public employee has 01 year to be classified and assessed as completing the task and 01 year to not complete the task but can not arrange another suitable job. If the employee failed to complete the tasks in the preceding year at the time of downsizing consideration, he or she voluntarily performs the downsizing and is approved by the agency or unit directly managing it.

= There are 02 consecutive years at the time of consideration for downsizing, and in each year, the total number of days off work is equal to or higher than the maximum number of days off due to illness as prescribed in Clause 1, Article 26 of the Law on Social Insurance; certified by the medical facility and by the Social Insurance agency to pay the sickness allowance in accordance with the current provisions of law or in the preceding year at the time of downsizing consideration with a total number of days off work equal to or higher than the maximum number of sick days according to the provisions of Clause 1, Article 26 of the Law on Social Insurance, individuals voluntarily reduce their payroll and obtain the consent of their direct management agencies or units.

= Cadres, civil servants, and public employees who lead and manage to voluntarily reduce payrolls and have those reductions approved by the agency or unit directly managing them due to organizational arrangements under the decisions of competent agencies. 

- 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.

- Redundancies of public employees and permanent employees of autonomous public service providers due to restructuring.

- 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 and Decree 200/2004/ND-CP

- Those who are cadres and civil servants appointed by competent agencies to participate in the management of or be authorized representatives of the state capital in the state-owned enterprises that have surpluses due to the restructuring of such enterprises.

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

- Those who are already cadres, civil servants and public employees who are transferred by competent agencies to work at associations are assigned payroll and state budget supports with funds to pay salaries if they fall into one of the cases specified in points dd, e, g, Clause 1, Article 6 of Decree 108/2014/ND-CP.

(Article 6 of Decree 108/2014/ND-CP, as amended by Article 1 Decree 113/2018/ND-CP)

2. People exempt from downsizing in Vietnam

People exempt from downsizing in Vietnam include:

- Workers who are on sick leave certified by the competent medical facilities.

- Officials, public employees and workers who are in pregnancy, on maternity leaves or have babies under 36 months.

- Workers during their disciplinary probation or criminal prosecution.

(Article 7 of Decree 108/2014/ND-CP)

Nguyen Thi Diem My

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