JOINT CIRCULAR

GUIDING THE IMPLEMENTATION OF THE PRIME MINISTERrsquo;S DECISION NO. 30/2009/QD-TTG OF FEBRUARY 23, 2009, ON SUPPORTS FOR LABORERS WHO ARE LAID OFF BY ENTERPRISES FACING DIFFICULTIES CAUSED BY ECONOMIC DECLINE

Pursuant to the Prime Ministerrsquo;s Decision No. 30/2009/QD-TTg of February 23, 2009, on supports for laborers who are laid off by enterprises facing difficulties caused by economic decline (referred to as Decision No. 30/2009/QD-TTg), the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance jointly guide its implementation as follows:

I. SUBJECTS OF APPLICATION

Governed by this Circular are enterprises and laborers defined in Articles 1, 2 and 3 of Decision No. 30/2009/QD-TTg.

II. PROVISION OF LOANS BY THE STATE TO ENTERPRISES FACING DIFFICULTIES IN 2009 TO MAKE PAYMENT TO THEIR LABORERS:

The provision of loans by the State to enterprises which in 2009 face difficulties caused by economic decline to pay salaries, social insurance premiums, job loss allowances or severance allowances to their laborers prescribed in Article 1 of Decision No. 30/2009/QD-TTg is specified as follows:

1. Eligible for loans are enterprises which satisfy the following conditions:

a/ Being enterprises of any economic sector which face difficulties caused by economic decline and are incapable of paying salaries, social insurance premiums, job loss allowances or severance allowances to laid-off laborers.

b/ Having to reduce the existing number of laborers by 30% or by 100 laborers or more (excluding season-based laborers working under Iess-than-3-month contracts).

Laid-off laborers are those on the enterprisesrsquo; payrolls to be laid off in 2009, including Vietnamese laborers working under labor contracts of an indefinite term, labor contracts of a term of between full 12 months and 36 months or season- or job-based labor contracts of full 3 months or more.

The time for calculating the reduced number of laborers is the time enterprises make labor restructuring plans.

c/ Having mobilized their own resources but remaining incapable of fully paying salaries, social insurance premiums, job loss allowances or severance allowances. Enterprisesrsquo; resources to make above-said payments include reserve funds for job loss allowances and salaries payable to laborers, including salary reserve fund and amounts deducted to pay insurance premiums but not yet paid to social insurance agencies.

2. The maximum loan term is 12 months.

3. The loan amount is determined by subtracting the enterprisersquo;s funds determined at Item c, Point 1 of this Clause from the fund amount needed to pay owed salaries, social insurance premiums, job loss allowances or severance allowances to laborers, but must not exceed the fund amount to pay owed salaries, social insurance premiums, job loss allowances or severance allowances payable to laid-off laborers.

4. The loan interest rate is 0% (zero per cent).

5. The order of and procedures for loan provision comply with the guidance of the Vietnam Development Bank but a loan dossier must be enclosed with the provincial-level Labor. War Invalids and Social Affairs Servicersquo;s written certification of the labor restructuring plan and the provincial-level Finance Servicersquo;s written certification of the declaration and use of resources defined at Item c, Point 1 of this Section.

The eligible enterprise shall work with the grassroots trade union organization in making a labor restructuring plan, identifying the existing number of laborers, the number of laborers to be employed, the number of laborers eligible for social insurance allowances and laborers with expired labor contracts and the number of laborers for whom the enterprise cannot arrange new jobs. This plan will be made according to form No. 1 attached to this Circular (not printed herein) and sent to the provincial-level Labor. War Invalids and Social Affairs Service of the locality where the enterprise is headquartered. The provincial-level Labor. War Invalids and Social Affairs Service shall send to the enterprise and the Vietnam Development Bankrsquo;s branch in the locality its written certification of the plan within 5 working days after the receipt of a request therefore. Any changes in the appraised labor restructuring plan during its implementation process must be reported in writing to the provincial-level Labor, War Invalids and Social Affairs Service and the Vietnam Development Bankrsquo;s branch.

The enterprise shall submit its financial statement of the latest quarter and a report on its resources to the provincial-level Finance Service of the locality where it is headquartered. The provincial-level Finance Service shall send its written certifications of the financial statement and the report on resources to the enterprise and the Vietnam Development Bankrsquo;s branch within 5 working days after the receipt of a request therefore.

6. The Vietnam Development Bank shall decide on loan amounts and provide loans and recover and handle debts according to its competence.

7. Payment of salaries, social insurance premiums, job loss allowances or severance allowances to laborers after receiving loans:

a/ Within 7 working days after the receipt of a notice of loan provision from the Vietnam Development Bankrsquo;s branch, the enterprise shall, together with the Vietnam Development Bankrsquo;s branch, pay salaries, job loss allowances or severance allowances in lump-sum to each laborer and pay social insurance premiums to social insurance agencies under the approved plan.

b/ Within 14 working days after the receipt of a notice of loan provision from the Vietnam Development Bankrsquo;s branch, the enterprise shall make a report on payment of payable amounts to laborers according to form No. 2 attached to this Circular (not printed herein) and send it to the provincial-level Labor, War Invalids and Social Affairs Service of the locality where it is headquartered.

III. IMPLEMENTATION OF POLICIES TOWARD LAID-OFF LABORERS OF ENTERPRISES WHOSE OWNERS ABSCOND IN 2009

Policies toward laid-off laborers of enterprises whose owners abscond in 2009 specified in Article 2 of Decision No. 30/2009/QD-TTg are implemented as follows:

1. Enterprises whose owners abscond in 2009 are those without lawful representatives to protect the interests of laborers, which are identified by provincial-level Peoplersquo;s Committees or agencies authorized by provincial-level Peoplersquo;s Committees.

Provincial-level Peoplersquo;s Committee presidents shall direct provincial-level Planning and Investment Services to work with concerned agencies in identifying enterprises whose owners abscond and compiling enterprisesrsquo; labor, salary and financial dossiers.

2. Payment of salaries owed by enterprises to their laborers

a/ Based on the dossier of the enterprise whose owner absconds, financial books and relevant documents, the provincial-level Labor, War Invalids and Social Affairs Service shall coordinate with the provincial-level Finance Service in identifying laborers on the enterprisersquo;s payroll, clearly determining the salary amount owed to each laborer.

b/ The provincial-level Labor, War Invalids and Social Affairs Service shall send to the provincial-level Peoplersquo;s Committee president a report on the sum of money to be allocated from the local budget to pay salaries owed to laborers, enclosed with a list of laborers and salary amounts owed to them, for the provincial-level Peoplersquo;s Committee president to decide on the allocation of money from the local budget to make advance payment to laborers.

c/ The provincial-level Peoplersquo;s Committee president shall assign the provincial-level Labor, War Invalids and Social Affairs Service to receive the sum of money allocated from the local budget to pay salaries owed to laborers and report it to the provincial-level Peoplersquo;s Committee and assign the provincial-level Planning and Investment Service to coordinate with the provincial-level Finance Service in handling the enterprisersquo;s assets to refund the sum of money allocated from the local budget.

IV. PROVISION OF LOANS FOR JOB TRAINING, SELF-EMPLOYMENT OR WORKING OVERSEAS FOR LABORERS WHO ARE LAID OFF IN 2009

Laborers who are laid off in 2009 may receive loans under Article 3 of Decision No. 30/2009/QD-TTg. Specifically:

1. Eligible for loans are laborers who are laid off in 2009 specified in Articles 1 and 2 of Decision No. 30/2009/QD-TTg (including overseas guest laborers working under contracts who are laid off and have to return home ahead of schedule).

2. Policies on loan provision:

a/ They may receive loans from the National Employment Fund under the National Target Program on Employment for self-employment.

b/ They may receive loans to learn jobs under the Prime Ministerrsquo;s Decision No. 157/2007/QD-TTg of September 27, 2007, on credit for pupils and students, within 12 months from the date they are laid off.

c/ They may receive loans from the Social Policy Bank like policy beneficiaries under the State Bank of Vietnamrsquo;s Decision No. 365/2004/QD-NHNN of April 13, 2004. within 12 months from the date they are laid off or from the date they return home.

3. Loan provision order, procedures and dossiers:

- Loan provision order and procedures comply with current regulations:

- Loan dossiers comply with current regulations and must be enclosed with a copy of the labor contract and a copy of the minutes on liquidation of the labor contract. Particularly, for overseas guest laborers working under labor contracts who are laid off and have to return home ahead of schedule, a copy of the contract on the sending of laborers to work abroad or a copy of the individual contract and written certifications of the enterprise sending the laborer to work abroad or certifications of the agency or organization where the laborer registered his/her individual contract are required.

V. ORGANIZATION OF IMPLEMENTATION

1. Responsibilities of provincial-level Peoplersquo;s Committees:

Provincial-level Peoplersquo;s Committees shall direct provincial-level Planning and Investment Services, Labor, War Invalids and Social Affairs Services, Finance Services and local functional agencies to organize the implementation of this Circular.

2. Responsibilities of provincial-level Labor, War Invalids and Social Affairs Services:

a/ To assume the prime responsibility for, and coordinate with relevant agencies in, propagating and disseminating policies and regimes toward laborers and perform tasks defined in this Circular.

b/ To conduct surveys on the number of laid-off laborers in enterprises facing difficulties caused by economic decline and make quarterly reports according to form No. 3 attached to this Circular (not printed herein) and send them to the Ministry of Labor, War Invalids and Social Affairs within the first 5 days of the first month of the following quarter.

c/ To examine and supervise the payment of salaries, job loss allowances or severance allowances to each laborer and the payment of social insurance premiums to social insurance agencies under the appraised plan.

d/ To direct job placement centers and job-training centers to train jobs, provide counseling and recommend jobs to laid-off laborers.

e/ To make quarterly reports on the provision of supports to laid-off laborers in enterprises caused by economic decline according to form No. 4 attached to this Circular (not printed herein) within the first 5 days of the first month of the following quarter.

3. Responsibilities of provincial-level Finance Services:

a/ To guide enterprises in strictly abiding by this Circular.

b/ To submit quarterly reports to the Ministry of Finance on the provision of loans to enterprises and allocation of capital from local budgets to pay salaries owed by enterprises to their laborers.

4. Responsibilities of the Vietnam Development Bank:

a/ To guide enterprises on loan provision procedures; to raise and provide loans and recover and handle debts as prescribed in this Circular and its regulations on loan provision.

b/ To make quarterly reports on the provision of loans according to form No. 5 attached to this Circular (not printed herein) and send these reports to the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance within the first 5 days of the first month of the following quarter.

5. Responsibilities of the Social Policy Bank:

a/ To raise and provide loans as prescribed in this Circular.

b/ To provide guidance on loan provision procedures.

c/ To make quarterly reports on the provision of loans according to form No. 6 attached to this Circular (not printed herein) and send these reports to the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance within the first 5 days of the first month of the following quarter.

6. This Circular takes effect on the date of its signing.

Any problems arising in the course of implementation should be reported to the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance for study and settlement.