In cases where the subjects buying shares at preferential prices have actually worked in the State sector (intermittently) before returning to work in the equitized enterprise, the working hours shall be accumulated. Practice in the State sector to calculate the purchase of shares at preferential prices.

Ms. Nguyen Thi Thu Huong, Tra Vinh Water Supply and Sewerage Joint Stock Company would like to request authorities to guide the problems when determining the preferential share purchase regime for employees as follows:

According to Point b, Clause 1, Article 42 of Decree No. 126/2017 / ND-CP: “The subjects specified at Point a, Clause 1 of this Article are allowed to buy up to 100 shares for each actual year working in the State area with the selling price equal to 60% of the value of a share calculated according to par value (VND 10,000 / share) ”.

While at Point b, Clause 2, Article 5 of Circular No. 07/2018 / TT-BLDTBXH, it stipulates: “The actual time that the person buying shares at preferential prices has worked (accumulated) at the issuing agency/ State non-business units, political organizations, socio-political organizations, units of the armed forces (including the time the employee is on military service), enterprises of the house. 100% of the charter capital is held by the country or the enterprise, inwhich 100% charter capital is held by a State enterprise has 100% other charter capital investment before returning to work in the equitized enterprise or before returning to work in the enterprise. Enterprise merged with an equitized enterprise or divided or split into an equitized enterprise (if any) ”.

Based on the above provisions, in the process of determining the time to buy preferred shares, there have been many problems that make it difficult for enterprises to explain to employees due to different understandings in case of previously timeworking in the State sector but with intermittent intervals.

Through the receiving and responding system to the recommendations of enterprises, Ms. Huong would like to ask, if the employee has bought shares in a State-owned enterprise before coming back to work as a business, she can accumulate working time in the State area to continue to determine the time to buy shares at preferential prices?

Regarding this issue, the Department of Labor Relations and Wages, Ministry of Labor - Invalids and Social Affairs has the following opinions:

Under the provisions of Point b, Clause 1, Article 42 of the Government's Decree No. 126/2017 / ND-CP dated November 16, 2017converting State enterprises and one-member limited liability companies with 100% of their charter capital invested by State enterprises into joint-stock companies, the subjects specified at Point a, Clause 1 of this Article may buy at night, maximum of 100 shares for each year actually working in the State sector with the selling price equal to 60% of the share value calculated at par value (VND 10,000/share).

According to Clause 2 and Clause 3, Article 5 of Circular No. 07/2018 / TT- BLDTBXH dated August 1, 2018 of the Ministry of Labor - Invalids and Social Affairs guiding the development of plans for the employment of employees and policies for employees when equitizing according to the provisions of Decree No. 126/2017 / ND-CP dated November 16, 2017 of the Government, the actual working time in the State sector to calculate the purchase of shares. with preferential prices at Point b, Clause 1, Article 42 of Decree No. 126/2017 / ND-CP above, including:

- The actual time that the person buying shares at a preferential price has worked (accumulated) at the equitized enterprise up to the time of enterprise valuation, including the time spent at the previous enterprise upon merger, consolidation with an equitized enterprise or divided into an equitized enterprise (if any);