The Government has just issued Decree No. 29/2023/ND-CP dated June 3, 6 on downsizing the payroll, effective from July 2023, 20. The regimes and policies specified in this Decree shall be applied until the end of December 7, 2023.
Subjects implementing the downsizing policy
The Decree stipulates the following subjects to implement the downsizing policy, including:
1. Cadres, civil servants and public employees; Commune-level cadres and civil servants and people working under indefinite-term labor contracts in administrative agencies may apply the same regimes and policies as civil servants according to the Government's regulations, if they fall into one of the following cases:
a) Redundancies due to the review and rearrangement of the organizational apparatus and personnel according to decisions of competent authorities or redundancies due to the arrangement of apparatus and personnel by public non-business units to implement the autonomy mechanism;
b) Redundancy due to rearrangement of administrative units at district and commune levels under decisions of competent authorities;
c) Redundancies due to restructuring of cadres, civil servants and public employees according to employment position, but unable to arrange or arrange another job or arrange another job but the individual voluntarily reduces the payroll and is approved by the agency, organization or unit directly under his/her management;
d) Have not reached the training level according to the prescribed professional standards for the current position, but do not have another suitable job position to arrange and cannot arrange for re-training to standardize their professional skills or be re-trained by another job placement agency but the individual voluntarily reduces the payroll and is approved by the agency, organization or unit directly managing;
dd) Having 02 consecutive years at the time of consideration for downsizing, the cadre, civil servant or public employee has 01 year of quality rating at the level of task completion and 01 year of failure to complete the task but cannot arrange another suitable job; in the year immediately preceding or in the year in which the downsizing is considered, the quality is rated at the level of task completion or below, but the individual voluntarily reduces the payroll and is approved by the agency, organization or unit directly under his/her management;
e) There are 02 consecutive years at the time of consideration for downsizing, and in each year, the total number of days off work is equal to or higher than the maximum number of days off due to illness as prescribed in Clause 1, Article 26 of the Law on Social Insurance, certified by the Social Insurance agency for payment of sickness allowance in accordance with current law; in the preceding year or in the year in which the payroll reduction is considered, with the total number of days off work equal to or higher than the maximum number of days off due to sickness as prescribed in Clause 1, Article 26 of the Law on Social Insurance, certified by the Social Insurance agency for payment of sickness allowance in accordance with current law, the individual voluntarily implements the downsizing and is directly managed by the agency, organization or unit;
g) Leading and managerial cadres, civil servants and public employees resign from holding positions and titles due to the reorganization of the organizational apparatus and administrative units under decisions of competent authorities, and individuals voluntarily reduce their payrolls with the consent of their direct management agencies, organizations or units;
h) Cadres, civil servants and public employees who are in the period of being disciplined but not yet to the point of being dismissed or forced to quit their jobs as prescribed by law at the time of consideration for downsizing, individuals voluntarily reduce their payrolls with the consent of their direct management agencies, organizations or units.
2. Persons working under the regime of indefinite-term labor contracts shall perform professional jobs on the list of job positions, professional titles and general professional titles in public non-business units according to the Government's regulations.
3. Those who work part-time at commune level who have a surplus due to the arrangement of commune-level administrative units and those who work part-time in villages or residential groups who have a surplus due to the arrangement of villages or residential quarters when arranging commune-level administrative units are on leave for a period of 12 months from the date of issuance of the arrangement decision of the competent authority.
Downsizing policy
The Decree clearly stipulates policies on downsizing staff: Policy on early retirement; the policy of moving to work at organizations that do not receive regular salaries from the state budget; severance policy; policy on early retirement for commune-level cadres and civil servants redundant due to the arrangement of commune-level administrative units whose age is at most 10 years old and at least 05 years lower than the retirement age in accordance with the law on social insurance; policies for those who reduce redundant staff due to the rearrangement of administrative units at district and commune levels from the time the competent authority's decision on arrangement is issued until the end of the arrangement schedule...
In particular, for the policy of early retirement, the Decree stipulates:
1. Persons downsizing the payroll are at least full 05 years old and at least full 02 years younger than the retirement age specified in Appendix II issued together with the Government's Decree No. 135/2020/ND-CP dated November 18, 11 stipulating the retirement age (Decree No. 2020/135/ND-CP) and have full 2020 years of paying compulsory social insurance premiums for 20 years or more, or doing heavy or dangerous jobs, including doing heavy or dangerous jobs, including doing heavy or dangerous jobs, including doing heavy or dangerous jobs, including doing heavy or dangerous jobs. The insured person is on the list issued by the Ministry of Labor, War Invalids and Social Affairs or has worked for 15 years or more in an area with extremely difficult socio-economic conditions issued by the Ministry of Labor, War Invalids and Social Affairs, including working time in a place with a regional allowance coefficient of 15 or higher before January 0,7, 01. In addition to enjoying the retirement regime as prescribed by law, the following social insurance benefits are also available:
a) The pension rate is not deducted due to early retirement;
b) Receive a subsidy of 03 months of average salary for each year of retirement before the retirement age specified in Appendix II issued together with Decree No. 135/2020/ND-CP;
c) To receive a subsidy of 05 months of average salary for the first twenty years of work, with full payment of compulsory social insurance. From the twenty-first year onwards, for every working year with compulsory social insurance payment, a subsidy of 1/2 month's salary will be provided.
2. Persons downsizing the payroll with a maximum age of full 05 years and at least full 02 years of age compared to the retirement age specified in Appendix I issued together with Decree No. 135/2020/ND-CP and having paid compulsory social insurance premiums for full 20 years or more, are entitled to a pension according to the provisions of Article 54 of the Law on Social Insurance 2014 (amended and supplemented in 2019).
a) Receive a subsidy of 03 months of average salary for each year of retirement before the retirement age specified in Appendix I to Decree No. 135/2020/ND-CP;
b) To enjoy the regimes specified at Points a and c, Section 1 above.
3. Persons downsizing the payroll have a minimum age of 02 years lower than the retirement age specified in Appendix II issued together with Decree No. 135/2020/ND-CP and have had full 20 years of payment of compulsory social insurance premiums, including full 15 years of working in heavy, hazardous, dangerous or exceptionally heavy, hazardous or dangerous occupations or jobs on the list issued by the Ministry of Labor, War Invalids and Social Affairs with full 15 years of special economic and social conditions, or having worked in regions with 0,7 years of special economic difficulties and conditions. promulgated by the Ministry of Labor, War Invalids and Social Affairs, including working time in a place with a regional allowance coefficient of 01 or more before January 01, 2021, they are entitled to the retirement regime in accordance with the law on social insurance and shall not be deducted the pension rate due to early retirement.
4. Persons downsizing the payroll with a minimum age of 02 years lower than the retirement age specified in Appendix I to Decree No. 135/2020/ND-CP and having paid compulsory social insurance premiums for full 20 years or more (especially for female cadres and civil servants at commune level who have paid compulsory social insurance premiums for at least 15 years) are entitled to a pension according to the social insurance rate prescribed by the law and the retirement age is not deducted from the retirement age.
5. Subjects of downsizing are female commune-level cadres and civil servants whose age is at least full 05 years old and at least full 02 years old compared to the retirement age specified in Appendix I promulgated together with Decree No. 135/2020/ND-CP and have paid compulsory social insurance for full 15 to under 20 years. In addition to enjoying the retirement regime as prescribed by law on social insurance, they are also entitled to the following regimes:
a) The pension rate is not deducted due to early retirement;
b) Receive a 05-month allowance of average salary and regimes specified at Point a, Section 2.
Regarding the policy of transferring to work at organizations that do not receive regular salary from the state budget, the Decree stipulates:
1. Subjects of downsizing and transferring to work in organizations that do not receive regular funding from the state budget are entitled to the following allowances:
a) Receive a subsidy of 03 months of current salary;
b) Receive a subsidy of 1/2 month of average salary for each working year with compulsory social insurance payment.
2. The policy specified in Section 1 above shall not be applied to those who have worked at a public non-business unit when the unit is transformed into a public non-business unit that can cover its own recurrent expenses or a public non-business unit that self-finances recurrent and investment expenses, or the enterprise or equitization is still allowed to work; Persons subject to downsizing of payrolls whose age is full 03 years lower than the retirement age specified in Appendix II issued together with Decree No. 135/2020/ND-CP, have had full 20 years of payment of compulsory social insurance premiums, including full 15 years of working in heavy, hazardous, dangerous or particularly heavy, hazardous or dangerous jobs on the list issued by the Ministry of Labor, War Invalids and Social Affairs, or having worked for 15 years or more in special economic zones; difficulties issued by the Ministry of Labor, War Invalids and Social Affairs, including working time at a place with a regional allowance coefficient of 0,7 or more before January 01, 01; persons subject to downsizing of payrolls whose age is full 2021 years lower than the retirement age specified in Appendix I promulgated together with Decree No. 03/135/ND-CP, have had full 2020 years of paying compulsory social insurance premiums or more.
