Via the receipt and reply system to business recommendations, some enterprises reported problems in solving the benefits for redundant employees and the labor use plans when implementing equitization and proposed that the Ministry of Labor, Invalids and Social Affairs should have guidance on this issue.

Some enterprises encountered difficulties in solving the benefits for redundant
employees and labor use plans when implementing equitization.

Will employees continue to enjoy the policy under Decree 63?

As reflected by Ben Thanh Corporation (HCMC), the settlement of benefits and policies for employees when carrying out equitization is currently based on Circular 44/2015/TT-BLDTBXH guiding the implementation of some articles of Decree 63/2015/ND-CP providing for policies towards redundant employees due to restructuring of state-owned single-member limited liability companies and Circular 07/2018/TT-BLDTBXH guiding for formulating employee utilization plan and implementing employee policies upon equitization prescribed in the Government’s Decree No. 126/2017/ND-CP on conversion from state-owned enterprises and single-member limited liability companies with 100% of charter capital invested by State-owned enterprises into joint-stock companies. However, in the process of implementation, the Company encountered some problems as follows:

Some member companies of the Corporation are currently single-member limited liability companies due to conversion from a branch, or consolidation, or merger, or division, or separation, and these companies have resolved the redundancy employee policy.

Now, the member companies must continue to carry out equitization following the plan approved by the competent authorities, so will the employees working at these companies continue to enjoy the policies for redundant employees under Decree 63/2015/ND-CP or not?

Saigon Culture Corporation is currently facing the same problem as Ben Thanh Corporation in dealing with the redundant labor benefits because its member units have also transformed into single-member limited liability companies and once solved the policy of redundant labor when converting. Therefore, the Culture Corporation proposes the relevant authorities to review and issue a document guiding the implementation of the above content.

When to hold the Labor Conference?

When conducting equitization, there are currently 2 closing times for the list according to Circular 44/2015/TT-BLDTBXH and Circular 07/2018/TT-BLDTBXH, Ben Thanh Corporation wants to know, which time below is the time to organize the Labor Conference:

- An Labor Conference must be held in the period from the time of enterprise valuation to the time of announcement of enterprise value.

- An Labor Conference is only organized after the time of announcing the enterprise value (because at that time, the list will be closed according to the provisions of Circular 44/2015/TT-BLDTBXH) and before the time of submitting the equitization plan.

And if it is not the above time, when will the Corporation have to hold the Labor Conference?

Is it necessary to organize 2 times of a Labor Conference?

Cao Bang Investment Development and Environment Company is in the process of equitization. As the time of enterprise valuation is the later time and there is a period since the time of the decision to approve the equitization plan, Cao Bang Investment and Development Company wants to know if the Company understand that it shall wait after the time of determining the enterprise value to develop a labor use plan with the first thing of making a list of employees and full-time representatives of equitized enterprises’ capital at the time of equitized enterprise valuation, is that right?

While drafting both labor use plans of Circular 07/2018/TT-BLDTBXH and Circular 44/2015/TT-BLDTBXH, with different forms and the time of making the list of employees under the two circulars are different, so the Company must:

1st time: Determine benefits and aggregate estimated funding for providing benefits for redundant employees on the time of enterprise valuation (with the time used to calculate the benefits for each employee is until the expected time of termination of the labor contract following the list in Form 5) under the provisions of Step 4, Appendix I of Circular 07/2018/TT-BLDTBXH.

2nd time: According to the provisions of Clause 6, Article 3 of Circular 44/2015/TT-BLDTBXH, the enterprise determines the time to terminate the labor contracts and calculates the benefits for redundant employees at the time of announcement of enterprise value and also estimated funding following Forms 6,7,8,9 of Circular 44/2015/TT-BLDTBXH.

So for deploying, the Company must base on the period which is from the first day of work to the expected date of termination of the labor contract or only to the date of announcement of the enterprise value to calculate the benefits for each redundant employee and determine the expected funding, which is correct?

Does the company need to hold 2 Labor Conferences to approve each labor use plan? When submitting for approval, which one will the Company be approved for the list of employees and expected funding under the labor use plan of Circular 07/2018/TT-BLDTBXH or Circular 44/2015/TT-BLDTBXH?

Based on the number of redundant employees at which time?

Regarding the settlement of the benefits with redundant employees, An Giang Construction Single-Member Company Limited wondered if asking for opinions at the Labor Conference as well as approving the redundant budget estimates and settlement for the labor use plan will be based on the number of redundant employees at which time? It is the time of announcement of enterprise value according to Form 10 of Circular 44/2015/TT-BLDTBXH or as prescribed in Step 4 of Appendix I of Circular No. 07/2018/TT-BLDTBXH with a list of redundant employees at the time of determining enterprise value?

When asking for opinions at the Labor Conference as well as approving the redundant budget estimates and settlements in the labor use plan, the determination of working time and time for calculating redundancy allowances (from column 2 to column 13), average salary (column 15), monthly salary support level (column 17) in Form 7 of Circular 44/2015/TT-BLDTBXH will be to the time of announcement of enterprise value or the time of announcement of the equitization plan or the time when redundant employees leave their jobs and terminate their labor contracts as prescribed in Step 4 of Circular 07/2018/ TT-BLDTBXH?

The above-mentioned complaints and recommendations of enterprises have been transferred by the Government Office to the Ministry of Labor, Invalids and Social Affairs for consideration and reply to enterprises, and at the same time, the results will be public on the Government’s Web Portal.