Vietnam: Employee utilization plan upon equitization of enterprises

According to Circular No. 07/2018/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, the employee utilization plan formulated shall contain at least:

- A list and number of employees and full-time representatives of the equitized enterprises’ capital on the date of enterprise valuation;

- A list and number of employees and full-time representatives of the equitized enterprises’ capital on the date of enterprise valuation who are accepted to continue their work, are sent to take re-training courses before continuing their work or change to work under non-full-time employment contracts in an enterprise after it is converted into a joint-stock company;

- A list and number of employees and full-time representatives of the equitized enterprises’ capital on the date of enterprise valuation who will retire in accordance with regulations of law on insurance from the date of enterprise valuation to the expected date of approval for the equitization method according to the approved equitization plan;

- A list and number of employees and full-time representatives of the equitized enterprises’ capital on the date of enterprise valuation who will terminate employment contracts in accordance with regulations of the Labor Code (with respect to employees) or are no longer allowed to represent capital of enterprises after the prescribed time limit for the representation and will terminate employment contracts that are being suspended in order to represent enterprises’ capital in other enterprises (with respect to full-time representatives of the equitized enterprises’ capital) from the date of enterprise valuation to the expected date of approval for the equitization method according to the approved equitization plan;

- A list and number of employees and full-time representatives of the equitized enterprises’ capital on the date of enterprise valuation whom the enterprise has failed in all attempts to assign proper duties in the enterprise after it is converted to a joint-stock company, resulting in termination of employment contracts (with respect to employees) or termination of employment (with respect to full-time representatives of the equitized enterprises’ capital);

- Solutions and budget for implementing the employee utilization plan.

The employee utilization plan must be formulated in a public and transparent manner in the enterprise and participated by the organization providing representation for employees working in the enterprise.

More details can be found in Circular No. 07/2018/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, which takes effect from September 15, 2018.

-Thao Uyen-

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