Joint Circular No. 06/2009/TTLT-BLDTBXH-BTC dated February 27, 2009 of the Ministry of Labor, War Invalids and Social Affairs and Ministry of Finance guiding the implementation of the Prime Minister’s Decision No. 30/2009/QD-TTg dated February 23, 2009, on supports for laborers who are laid off by enterprises facing difficulties caused by economic decline

GUIDING THE IMPLEMENTATION OF THE PRIME MINISTER’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 Minister’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 enterprises’ 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. Enterprises’ 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 enterprise’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 Service’s written certification of the labor restructuring plan and the provincial-level Finance Service’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 Bank’s branch in the locality its written certification of the plan within 5 working days after the receipt of a request therefor. 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 Bank’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 Bank’s branch within 5 working days after the receipt of a request therefor.

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 Bank’s branch, the enterprise shall, together with the Vietnam Development Bank’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 Bank’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.

JOINT CIRCULAR