Joint Circular No. 11/2008/TTLT-BLDTBXH-BTC dated July 21, 2008 of the Ministry of Labour, War Invalids and Social Affairs and the Ministry of Finance guiding the management and use of the overseas employment support fund

JOINT CIRCULAR

GUIDING THE MANAGEMENT AND USE OF THE OVERSEAS EMPLOYMENT SUPPORT FUND

Pursuant to the Governments Decree No. 186/2007/ND-CP of December 25. 2007, defining the functions, tasks, powers and organizational structure of the Ministry ofLcdwr, War Invalids and Social Affairs;

Pursuant to the Governments Decree No. 77/2003/ND-CP of July 1, 2003, defining the functions, tasks, powers and organizational stnicture of the Ministry of Finance;

Pursuant to the Prime Ministers Decision No. 144/2007/QD-TTg of August 31, 2007, on the setting up, management and use of the Overseas Employment Support Fund (below referred to as Decision No. 144/2007/QD-TTg),

The Ministry of Labor, War Invalids and Social Affairs and the Minisny of Finance jointly guide the management and use of the Overseas Employment Support Fund (below referred to as the Fund) as follows:

I. SOURCES, LEVELS AND MODE OF CONTRIBUTION TO THE FUND

1. The balance transferred from the Labor Export Support Fund.

2. Service enterprises contributions under Clause 2, Article 2 of Decision No. 144/2007/QD-TTg, which are specified as follows:

a/ Service enterprises shall deduct 1% of their annual service revenues for contribution to the Fund.

The annual service revenue used as a basis for calculating contributions to the Fund is annual service turnover of a service enterprise. The enterprise may account this contribution as an expense for sending workers abroad.

b/ Quarterly, by the 10th of the first month of the subsequent quarter, service enterprises shall themselves make declarations and contributions to the Fund according to regulations. By the end of the first quarter of the subsequent year, service enterprises shall make full contributions and send to the Fund finalization reports of the previous year (made according to a set form, not printed herein).

3. Workers contributions under Clause 3, Article 2 of Decision No. 144/2007/QD-TTg, which are specified as follows:

a/ Workers shall contribute VND 100,000/ person/contract (also covering the extended contract duration) and will be granted- fund participation certificates.

A fund participation certificate will entitle the named worker to benefits specified in this Circular. Such a certificate is valid from the time a worker makes contribution to the time his/her labor contract terminates, including the extended contract duration.

The Fund Executive Board is responsible for printing, distributing and supplying fund parti ation certificates to workers through worker-sending enterprises or organizations and provincial-level Services of Labor. War Invalids and Social Affairs (made according to a set form, not printed herein).

b/ Workers sent abroad through service enterprises, contract-performing enterprises, non-business organizations or offshore investors (below collectively referred to as worker-sending enterprises or organizations) shall, before going abroad, make contributions to the Fund when attending training courses on necessary knowledge.

c/ Workers sent abroad under individual contracts shall make contributions to the Fund when registering contracts at provincial-level Services of Labor. WarInvalids and Social Affairs.

d/ Worker-sending enterprises or organizations and provincial-level Services of Labor, War Invalids and Social Affairs shall collect workers contributions to the Fund in accordance with this Circular and grant certificates to workers under the guidance of the Funds Executive Board; and monthly, by the 10th of the subsequent month, transfer fully the previous months revenues to the Funds account.

e/ Quarterly and annually, worker-sending enterprises or organizations and provincial-level Services of Labor, War Invalids and Social Affairs shall send to the Fund reports on the collection and remittance of workers contributions to the Fund (made according to a set form, not primed herein), enclosed with lists of workers (made according to a set form, not printed herein).

4. State budget supports in special cases under the Prime Ministers decisions.

5. Other sources (deposit interests, funds of domestic and foreign organizations and individuals).

II. SUPPORT CONTENTS, LEVELS, ORDER AND PROCEDURES

1. Supports to expand and develop overseas labor markets under Clause 1, Article 3 of Decision No. 144/2007/QD-TTg are specified as follows:

a/ Supports for exploring new labor markets

New labor markets include countries and territories to which Vietnamese guest workers have not yet been sent.

- Support beneficiaries: organizations and individuals representatives invited by the Ministry of Labor, War Invalids and Social Affairs to participate in visits to explore new labor markets.

- Support levels: The Fund shall cover return air fares from Vietnam to the host country and vice versa for invited enterprise representatives and all expenses for state budget-salaried officials according to regulations.

- Support order and procedures: Based on the Labor. War Invalids and Social Affairs Ministrys decisions inviting officials to participate in visits to explore overseas labor markets, the Fund shall buy air tickets and cover other expenses (if any) for the invited representatives of organizations and individuals.

- Within 7 days after finishing a work trip, support beneficiaries shall submit expense documents to the Fund for carrying out payment procedures according to regulations.

b/ Supports for enterprises to explore new labor markets

- Support beneficiaries and conditions: The Fund shall provide supports for the first 5 (five) service enterprises which have succeeded in exploring and sending workers to new labor markets.

- The support level is up to 30% of air fares and work-trip allowances for enterprises officials who went abroad to explore new labor markets (according to the package level set by the Ministry of Finance for cadres and civil servants going on overseas short-term work trips funded by the state budget), which must not exceed USD 5,000 (five thousand)/enterprise/market.

- Support order and procedures: A service enterprise, which is certified by the Overseas Employment Management Department as one of the first 5 enterprises having succeeded in exploring and sending workers to new labor markets (made according to a set form, not printed herein), shall send to the Fund a written request for supports, enclosed with the following documents:

+ The competent agencys or organizations (original) decision sending the enterprises officials to work abroad;

+ A statement of expenses for air tickets and work-trip allowances for the enterprises officials going abroad to explore new labor markets (enclosed with all expense documents for comparison).

- Time limit for providing supports: The Fund shall provide supports within 30 working days after receiving sufficient documents as prescribed; if refusing to provide supports, it shall give a written reply clearly stating the reason.

c/ Supports for enterprises to consolidate and develop traditional labor markets

Traditional labor markets include countries and territories to which Vietnamese guest workers have been sent and which continue to receive Vietnamese workers.

- Support beneficiaries and conditions: service enterprises which have sent more than 500 workers/year/market with a workers basic salary of at least USD 500/month. or 1,000 workers/year/ market with a workers basic salary of under USD 500/month and settled in time problems of workers.

- The support level is up to 30% of rhe cost-of-living allowance for enterprises worker managers overseas (which is the minimum cost-of-living allowance set by the Ministry of Finance for cadres and civil servants working at overseas Vietnamese representative missions), which must not exceed USD 3,000 (three thousand)/ enterprise/year/market.

- Support order and procedures: Annually, a service enterprise shall send to the Fund a written request for supports, with the Overseas Labor Management Departments certification of the number of sent workers and the situation of management of overseas workers (made according to a set form, not printed herein), enclosed with the following documents:

+ The competent agencys or organizations (original) decision sending the enterprises officials abroad to manage workers;

+ A statement of expenses for cost-of-living allowances for the enterprises work managers overseas (enclosed with all expens documents for comparison).

- Time limit for providing suppo: The Fund shall provide supports within 15 working days after receiving sufficient documents asprecribed; if refusing to provide supports, it shall give a written reply clearly stating the reason.

d/ Supports for the Labor, War I: valids and Social Affairs Ministrys activities aiming to establish relations, mobilize partners, gather information for exploring new labor markets, and consolidate and develop traditional labor markets, which are not funded by the state budget.

- The support level must not exceed 30% of total annual expenses for activities of exploring and creating overseas labor markets a cording to approved estimates.

Annually, the Fund shall make and submit estimates of financial supports for the above activities to the Minister of Labor, War Invalids and Social Affairs for approval.

Support order and procedures: When it is necessary to carry out the above activities, agencies, organizations and individuals tasked to perform these activities shall submit specific reports on these activities and their cost estimates to the Ministry of Labor, War Invalids and Social Affairs for approval. Based on the approved activities and cost estimates, the Fund shall provide and finalize financial supports according to regulations:

e/ Supports for disseminating information on Vietnamese guest workers

- Support beneficiaries and conditions: agencies licensed by the Minister of Labor, War Invalids and Social Affairs to disseminate information on Vietnamese guest workers.

- The support level is up to 50% of actual expenses but must not exceed 50% of approved estimates.

- Support order and procedures: Concerned agencies shall send to the Fund written requests for supports, enclosed with the Labor, War Invalids and Social Affairs Ministers decisions permitting them to disseminate information on Vietnamese guest workers (indicating specific activities and cost estimates for carrying out these activities).

- Time limit for providing supports: Within 10 days after receiving sufficient documents as prescribed, the Fund shall advance financial supports equal to 35% of approved cost estimates. If refusing to make advance, it shall give a written reply clearly stating the reason.

- Within 15 days after completing information activities, concerned agencies shall make payment and finalization with the Fund according to regulations. A payment and finalization dossier comprises a written request for payment and a statement of expenses (enclosed with all expense documents for comparison).

2. Supports for training and retraining to raise the quality of workforce under Clause 2, Article 3 of Decision No. 144/2007/QD-TTg are specified as follows:

a/ Textbooks and materials on foreign languages and knowledge necessary for workers

- Support beneficiaries: workers sent abroad by worker-sending enterprises or organizations or under individual contracts.

- Support levels: The Fund shall provide free textbooks and materials on foreign languages and necessary knowledge to workers through worker-sending enterprises or organizations or provincial-level Services of Labor, War Invalids and Social Affairs (for individual contracts).

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