Vietnam: Guidelines for formulating employee utilization plan upon equitization of enterprises

- Step 1: Review and compile a list and number of employees and full-time representatives of equitized enterprises’ capital on the date of equitized enterprise valuation;

- Step 2: According to the number of employees of the enterprise and business and production plan in the next 3-5 years, the equitized enterprise shall classify all employees on the date of enterprise valuation and compile lists;

- Step 3: On the basis of the list of employees and full-time representatives of equitized enterprises’ capital to whom the enterprise has failed in all attempts to assign proper duties in the enterprise, resulting in termination of employment contracts or termination of employment, the equitized enterprise shall review and classify employees by the date on which such employees are accepted through the final recruitment procedure  into the enterprise: employees accepted through the final recruitment procedure into the equitized enterprise before April 21, 1998; employees accepted through the final recruitment procedure into the equitized enterprise from April 21, 1998 onwards;

- Step 4: The equitized enterprise shall classify and review the seniority; set the specific time at which employment contracts are terminated; determine benefits and aggregate expected funding for providing benefits for employees;

- Step 5: Implement the employee utilization plan in an open and transparent manner and seek opinions of organizations providing representation for employees and employees at extraordinary employee conferences;

- Step 6: Compile a final list of employees on the date of enterprise valuation; consolidate and complete the employee utilization plan and submit it to the competent authority for approval.

Circular No. 07/2018/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam takes effect from September 15, 2018 and replaces Circular No. 33/2012/TT-BLDTBXH.

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