VietNamNet Bridge – Public employees and officials can take early retirement if they do not meet new job specifications after their company gets restructured.

Public employees and officials can take early retirement if they do not meet new job specifications after their company gets restructured.—  Photo kinhtedothi.vn

The final decision will be made by management if employees take the retirement option.  

This is part of the Decree 113/2018/NĐ-CP approved by Prime Minister Nguyen Xuan Phuc.

Currently, there are 12 groups of officials and public employees subject to downsizing.

Those working for public service providers, contractual workers granted by the competent authority, and officials of communes receiving salaries from the State shall be subject to the downsizing if they are made redundant due to the restructuring of organisations or personnel upon requests of the competent authority of the Communist Party or the State; or the conversion of public service providers into autonomous ones.

In other cases, they may be made redundant due to the restructuring of officials, and public employees according to their positions and failure to offer new jobs; or they fail to meet qualifications required for the position but the organisation is unable to provide additional training and offer new relevant jobs.

Or if their qualifications are irrelevant to the current jobs resulting in poor performance but their organisations are unable to appoint them to another position.

Redundancies will also occur if officials’ performance is recognised as “average but shortcomings exist” for two consecutive years; or their annual performance in two years is recognised as “average but shortcomings exist” and “poor” but their organisation is unable to offer them new jobs.

According to Ministry of Home Affairs, nearly 40,000 State employees have been made redundant since 2015 when the Decree 118 became effective.

Of that, more than 5,750 employees were made redundant in 2015, more than 11,900 employees in 2016, about 12,660 employees in 2017 and some 9,460 in the first seven months of 2018.

Statistics from the Ministry of Finance showed more than seven million people receive their wage from the State.

The payment of salaries, pension and other allowances are included in the annual regular expenditures of the Government.

It is estimated to account for up to half of the annual regular expenditures of the Government, equal to VND400 trillion (US$17.2 billion) each year. 

Source: VNS