Circular 03/1999/TT-LDTBXH

For enterprises to effect the preferential regime toward the poor laborers as provided for in the Government’s Decree No.44/1998/ND-CP of August 29, 1998 on the transformation of State enterprises into joint stock companies,

After consulting the Vietnam General Confederation of Labor, the Central Committee for Enterprise Management Renewal and the concerned agencies; the Ministry of Labor, War Invalids and Social Affairs hereby amends Point 3, Part A of Circular No.11/1998/TT-LDTBXH of August 21, 1998 guiding the policies toward the laborers when State enterprises are transformed into joint stock companies, as follows:

Eligible for preferences provided for in Clause 2, Article 14 of the Government’s Decree No.44/1998/ND-CP of June 29, 1998 are poor laborers who have low per-head family income.

The enterprise directors are assigned to coordinate with their respective enterprises’ Party Committees and Trade Union organizations in selecting poorest laborers in the enterprises. Such selection must ensure the following principles:

- The maximum per-head family income must not exceed 1/3 (one third) of the average monthly wage level for each year announced by the Ministry of Labor, War Invalids and Social Affairs (for 1998, under Decision No.1069/1998/QD-BLDTBXH of October 14, 1998, such wage level was 900,000 VND/month).

- The number of selected poor laborers must be approved by the Conference of Employees (delegates’ or plenary conference) on the following principles: majority, above half of the conference participants and public announcement in the entire enterprise.

- It is forbidden to distribute the shares reserved for the poor laborers stipulated in Clause 2, Article 14 of the Government’s Decree No.44/1998/ND-CP of June 29, 1998 to other laborers in the enterprise.

- The number of the selected poor laborers shall be incorporated in the enterprise equitization plan.

The per-head family income shall be calculated on the revenues, including wage, bonuses and wage allowances for wage earners; and principal income from labor of family members who work in other economic sectors (without any other income) divided by the number of family members (wife, husband, children and other dependents).

This Circular takes effect after its signing.

The Minister of Labor, War Invalids and Social Affairs