Ministry of Home Affairs proposes to remove 3 subjects from staff streamlining

Regarding the content of the draft Decree, the Ministry of Home Affairs informed about the subjects of staff streamlining , compared with the provisions in the old Decrees, for the subjects of contract workers The draft proposes to apply to contract workers performing professional and technical tasks at public service units that self-insure regular expenses and investment expenses; public service units that self-insure regular expenses and public service units that partly self-insure regular expenses in accordance with the provisions of Decree No. 111/2022/ND-CP dated December 30, 2022 of the Government on contracts for certain types of work in administrative agencies and public service units. The Decree does not apply to contract workers performing professional and technical tasks at public service units whose regular expenses are guaranteed by the state budget, because this subject signs a contract with a term of no more than 12 months.

The draft proposes to remove the following subjects: Contractual workers; Company presidents, members of the Board of Members, General Directors, Deputy General Directors, Directors, Deputy Directors, Chief Accountants, and Controllers in single-member limited liability companies owned by the State or by political organizations or socio-political organizations (excluding General Directors, Deputy General Directors, and Chief Accountants working under labor contracts); Employees working on the payroll assigned by competent state agencies at associations.

At the same time, add the subject of people working at non-budgetary financial funds.

Regarding cases of staff streamlining, inheriting the regulations on staff streamlining cases stipulated in 03 Decrees on staff streamlining cases, the draft proposes to add cases where cadres, civil servants and public employees during the period of being disciplined in one of the forms of reprimand or warning, voluntarily carry out staff streamlining and are agreed by the agency or unit directly managing them in accordance with the direction of the Politburo in Notice No. 20-KL/TW.

In the case of cadres, civil servants and public employees who have not met the professional and technical training standards prescribed for the job position they are holding, the draft proposes to apply this provision only to civil servants and public employees; as for cadres, the Personnel Plan for introducing the election, approval and appointment of personnel for each term clearly defines the standards, structure, number and specific personnel. It is proposed not to raise the issue of streamlining the payroll for cadres who have not met the professional and technical training standards.

Regarding cases where staff reduction has not been resolved , the Ministry of Home Affairs said that Decree No. 108/2014/ND-CP stipulates that staff reduction has not been considered for cases of illness, pregnancy, maternity leave and raising children under 36 months old in order to protect the rights of cadres, civil servants and public employees. However, during the implementation process, many individuals have expressed their desire to reduce staff because they are not healthy enough to work. Accordingly, the draft proposes to amend this content in the direction of not considering staff reduction for these cases, except for cases where individuals voluntarily reduce staff.

Regarding the early retirement policy, this draft Decree only amends the age of early retirement policy to ensure compliance with the provisions of Point a, Clause 1, Article 219 of the 2019 Labor Code; Decree No. 135/2020/ND-CP and ensures correlation with the age of appointment and introduction of candidates in Conclusion No. 08-KL/TW. Accordingly, the method of calculating the early retirement age is calculated according to the retirement age of cadres, civil servants and public employees according to the provisions of Appendix I, Appendix II of Decree No. 135/2020/ND-CP; At the same time, supplement the early retirement policy for female commune-level cadres and civil servants who have paid social insurance for 15 years and under 20 years and are of retirement age according to the provisions of Decree No. 135/2020/NDCP to ensure compliance with the provisions of Point a, Clause 1, Article 219 of the 2019 Labor Code.

Regarding the policy for redundant cadres, civil servants and public employees due to the arrangement of district and commune-level administrative units who retire within 06 months from the date of the arrangement decision of the competent authority, the draft Decree proposes to add a new Article 9 stipulating the policy for redundant subjects due to the arrangement of district and commune-level administrative units who retire within 06 months from the date of the arrangement decision of the competent authority to enjoy the following allowance levels: Redundant cadres, civil servants and public employees due to the arrangement of district and commune-level administrative units, in addition to enjoying one of the policies according to regulations, will enjoy an additional allowance level.

In which, the Ministry of Home Affairs proposed 02 options, Option 1: For each month of leave before the end of the roadmap for resolving redundant cadres, civil servants and public employees according to the decision of the competent authority, the employee will receive a subsidy of 1,800,000 VND (equal to 01 month of basic salary applied from July 1, 2023). For subjects whose number of months of leave before the retirement age prescribed in Appendix I, Appendix II of Decree No. 135/2020/ND-CP is lower than the roadmap for resolving redundant cadres, civil servants and public employees according to the decision of the competent authority, the number of months of benefit will be calculated by the number of months of leave before the retirement age mentioned above.

Analyzing the advantages of this plan, the Ministry of Home Affairs said that in addition to the subsidy received, each person will receive an additional equal subsidy. If the redundancy settlement roadmap is 5 years, the maximum additional subsidy each person will receive is 108,000,000 VND (60 months x 108,000,000 VND).

The disadvantage is that the subsidy level is not large enough to encourage redundant employees to retire before the competent authority's redundancy settlement roadmap.

Option 2: For each month of leave before the end of the roadmap for resolving redundant cadres, civil servants, and public employees according to the decision of the competent authority, the allowance is equal to 1/2 month of current salary. For subjects whose number of months of leave before the retirement age specified in Appendix I, Appendix II of Decree No. 135/2020/ND-CP is lower than the roadmap for resolving redundant cadres, civil servants, and public employees according to the decision of the competent authority, the number of months of benefit is calculated by the number of months of leave before the retirement age mentioned above.

The advantage of this option is that in addition to the downsizing allowance, this subject will receive an additional allowance calculated based on his/her current salary. If the redundancy settlement roadmap is 5 years and the average salary coefficient is 3.66, then on average each person will receive an allowance of about 197,640,000 VND (3.66 x 1,800,000 VND x 1/2 x 60 months). This allowance level will encourage the downsizing subject to retire before the end of the arrangement roadmap.

The disadvantage is that the budget will spend a lot of subsidies on this group; at the same time, each person will have a different subsidy level, leading to comparisons between groups.

Based on the advantages and disadvantages of the two options mentioned above, the Ministry of Home Affairs proposes to implement option 1 in order to encourage and adequately support redundant cadres, civil servants and public employees due to the arrangement of administrative units at district and commune levels to immediately retire in accordance with the policy of the Politburo and the Standing Committee of the National Assembly.

In addition, the draft also stipulates that based on the local budget balance, the People's Committee at the provincial level shall submit to the People's Council at the same level to issue support policies for redundant cadres, civil servants and public employees due to the rearrangement of administrative units at the district and commune levels./.

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