| THE MINISTRY OF FINANCE -------- No. 180/2012/TT-BTC | SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ---------------- Hanoi, October 24th 2012 |
CIRCULAR
GUIDING THE FINANCIAL SETTLEMENT OF REDUNDANCY PAYS GIVEN TO EMPLOYEES
Pursuant to the Labor Code dated June 23rd 1994, the Law on amending and supplementing a number of articles of the Labor Code dated April 02nd 2002; the Law on amending and supplementing a number of articles of the Labor Code dated November 19th , 2006;
Pursuant to the Labor Code dated June 18th 2012;
Pursuant to the Government's Decree No. 39/2003/ND-CP dated April 18th 2012 detailing the implementation of a number of articles of the Labor Code applicable to employments;
Pursuant to the Government's Decree No. 118/2008/ND-CP dated November 27th 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to the Government's Decree No. 122/2011/ND-CP dated December 27th 2012 amending and supplementing a number of articles of the Decree No. 124/2008/ND-CP dated December 11th 2008 detailing and guiding the implementation of a number of articles of the Law on Enterprise income tax;
At the proposal of the Director of the Department of Enterprise Finance
The Minister of Finance promulgates a Circular to guide the financial settlement of redundancy pays given to employees:
Article 1. Subjects of application and scope of regulation
1. This Circular guides the financial settlement of redundancy pays given to employees in the enterprise established and operated in patients as prescribed by law.
2. For the joint-venture enterprises established based on the Agreements signed between the Government of the Socialist Republic of Vietnam and another Government, if the provisions on redundancy pay in such agreements is inconsistent with this Circular, such Agreements shall apply.
Article 2. The bases for determining that the redundancy pay may be included in the expense
1. The redundancy pay given to employees when the enterprise changes its structure or technology as prescribed in Clause 1 Article 17 of the Labor Code 1994, Article 11 of the Government's Decree No. 39/2003/ND-CP dated April 18th 2003 detailing and guiding the implementation of a number of articles of the Labor Code applicable to employments.
2. The redundancy pay given to the employees that started to work on December 31st 2008 and earlier is calculated as guided in the Circular No. 39/2009/TT-BLDTBXH dated November 18th 2009 of the Ministry of Labor, War Invalids and Social Affairs, guiding the implementation of Article 12 of the Government's Decree No. 39/2003/ND-CP dated April 18th 2003 detailing and guiding the implementation of a number of articles of the Labor Code applicable to employments.
3. When the Labor Code No. 10/2012/QH13 passed by the 8th National Assembly of the Socialist Republic of Vietnam in the 3rd session on June 18th 2012 takes effect, and the documents stated above are superseded, the redundancy pay is calculated as guided in the new documents.
Article 3. The financial settlement of redundancy pay and the balance of the provision fund for redundancy pay
