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55 years old to under 60 years old for men, 50 years old to under 55 years old for women, with 20 years or more of social insurance payment time:

Then, on June 19, 2002, the Government issued Decree No. 64/2002/ND-CP on converting SOEs into Joint Stock Companies (replacing Decree No. 44/1998/ND-CP) with many changes. Article 7 of the Decree stipulates: "Equitized enterprises are responsible for arranging and using the maximum number of employees at the time of equitization and resolving policies for employees according to current regulations". This is an "open" regulation for employers in arranging and using labor. The Decree provides many preferential regulations for employees:

- Employees whose names are on the regular list of the equitized enterprise at the time of the equitization decision will be sold by the State a maximum of 10 shares for each year of actual work in the state sector at a price 30% lower than the original face value. The value of one share is 100,000 VND...

Employees who own shares purchased at a preferential price have the right to inheritance and other rights of shareholders as prescribed by law and the Charter of the organization and operation of the Joint Stock Company. Shares of this type of share are registered shares and can only be transferred after 3 years from the date of purchase. In special cases where it is necessary to transfer these shares before the above deadline, it must be approved by the Board of Directors of the Company. The Joint Stock Company has the right to buy back at the market price at the time of sale.

- Poor workers in equitized enterprises are allowed to buy shares on credit at preferential prices, with deferred payments for the first 3 years and installment payments for the next 7 years without interest. The number of shares purchased on credit for poor workers shall not exceed 20% of the total number of State shares sold at preferential prices to workers in the enterprise. Shares of this type of shares are registered shares.

name. The owner of this share can only transfer it after 3 years from the date of purchase and has paid off all debts to the State.

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- After a state-owned enterprise is transformed into a joint stock company, if due to the need to reorganize business activities or change technology, employees in the state-owned enterprise lose their jobs or quit their jobs, including cases where employees voluntarily quit their jobs, it will be resolved as follows:

+ Within 12 months from the date the Joint Stock Company is granted a business registration certificate, if an employee loses his/her job due to restructuring and is eligible for the policy for redundant employees due to the restructuring of state-owned enterprises according to Decree No. 41/2002/ND-CP dated April 11, 2002 of the Government, he/she will be supported by the Redundant Labor Support Fund.

55 years old to under 60 years old for men, 50 years old to under 55 years old for women, with 20 years or more of social insurance payment time:

The remaining unemployed or terminated workers will receive unemployment benefits according to current labor laws and will be supported by the Fund for Supporting the Arrangement and Equitization of State-owned Enterprises.

+ In case the employee loses his/her job or quits within the next 4 years, the Joint Stock Company is responsible for paying 50% of the total allowance according to the provisions of the Labor Code, the remaining amount will be paid by the Fund for supporting the arrangement and equitization of state-owned enterprises. After the above period, the Joint Stock Company is responsible for paying all allowances to the employee [22].

For the surplus labor at the time of equitization that needs to be trained and retrained to arrange new jobs in the joint stock company, the State will support a part of the cost.

Fees for JSCs to organize training and retraining from the Fund to support the arrangement and equitization of state-owned enterprises according to the guidance of the Ministry of Finance.

The particularly important thing about the law on CPH in this period is that the issue of surplus labor has been separated and regulated separately in Decree No. 41/2002/ND-CP dated April 11, 2002 of the Government on policies for surplus labor due to restructuring of state-owned enterprises and Decree No. 55/2004/ND-CP dated August 10, 2004 amending and supplementing a number of articles of Decree No. 41/2002/ND-CP. Accordingly, in addition to enjoying the general benefits prescribed by the Labor Code, employees are also entitled to a number of other benefits. The Decree divides into 2 types of subjects with different retirement levels:

* Surplus employees currently performing indefinite-term labor contracts:

1. 55 to under 60 years old for men, 50 to under 55 years old for women, with 20 years or more of social insurance payment:

a) Retirement, but without deduction of pension percentage due to early retirement.

b) Entitled to two additional benefits:


- Subsidy of 03 months of salary, position, and salary allowance currently received for each year (12 months) of early retirement;

- Subsidy of 05 months of salary, rank, position, and salary allowance currently received for the first 20 years of work with social insurance. From the 21st year onwards, for each year of work with social insurance, an additional subsidy of 1/2 month of salary, rank, position, and salary allowance currently received will be granted.

2. Those who have reached retirement age according to the provisions of the Labor Code but still lack the maximum social insurance payment period of 01 year will be entitled to receive

The State shall pay a one-time social insurance premium for the missing months at the rate of 15% of monthly salary to settle the monthly pension regime.

3. The remaining subjects shall terminate their labor contracts and enjoy the following benefits:

a) Unemployment benefits are calculated based on the actual number of years of work in the public sector. For each year, the employee is entitled to one month's salary, position, and current salary allowance, but the lowest is equal to two months' current salary and salary allowance;

b) Supported with the following two additional amounts:


- Allowance of 01 month salary based on rank, position, and salary allowance currently received for each year of actual work in the state sector;

- One-time subsidy of 5 million VND.


c) Receive 06 months of salary based on rank, position, and salary allowance to find a job.

In case the employee wishes to learn a trade, in addition to the above-mentioned job-seeking allowance, he/she will also be trained for a maximum of 6 months at vocational training facilities as prescribed by the State. The State shall provide funds for these vocational training facilities to train surplus labor.

d) Employees who are at least 5 years short of retirement age as prescribed by the Labor Code and have paid social insurance for 15 years or more but have not received a one-time social insurance benefit, in addition to enjoying the benefits prescribed in Points a and b of this Clause, are also allowed to continue paying social insurance at a rate of 15% of the monthly salary before leaving work to the social insurance agency at their place of residence until they reach retirement age to enjoy retirement and death benefits. In case they are not eligible to continue paying social insurance as mentioned above, their payment period will be reserved.

social insurance and social insurance book issuance or one-time subsidy according to current regulations.

. Employees who have received subsidies according to the above regulations, if re-employed at the enterprise that laid them off, or at another state-owned enterprise, must return the subsidy amount.

* Redundant employees who are performing labor contracts with a term of 01 to 03 years will have their labor contracts terminated and will enjoy the following benefits:

1. Unemployment benefits are calculated based on the actual number of years of work in the public sector, with each year receiving a subsidy of 1 month of salary based on the rank, position, and salary allowance currently received.

2. Subsidize 70% of salary, position, and salary allowance currently received for the remaining months of the signed labor contract, but not exceeding 12 months.

3. Employees who are less than 5 years old and have paid social insurance premiums according to the provisions of the Labor Code and have paid social insurance premiums for 15 years or more but have not received a one-time social insurance benefit, in addition to enjoying the benefits prescribed in Clauses 1 and 2 of this Article, are also allowed to continue paying social insurance premiums at a rate of 15% of the monthly salary before leaving work to the social insurance agency at their place of residence until they reach retirement age to enjoy pension and death benefits. In case they are not eligible to continue paying social insurance premiums as mentioned above, their social insurance payment period will be reserved and they will be issued a social insurance book or receive a one-time benefit according to current regulations [23] .

* In addition to the policies applicable to the two types of subjects mentioned above, surplus workers are also given the opportunity to borrow capital from the National Employment Fund to create their own jobs and be introduced to find new jobs.

By 2004, drawing on experience after a period of equitization, the Government issued Decree 187/2004/ND-CP dated November 16, 2004, replacing Decree 64/2002/ND-CP. Decree 187/2004/ND-CP stipulates: “Employees whose names are on the regular list of the enterprise at the time of the equitization decision are allowed to buy a maximum of 100 shares for each year of actual work in the state sector at a price 40% lower than the average auction price sold to other investors”[24]. Thus, the maximum number of preferential shares sold to employees increased compared to before: from 10 shares to 100 shares for each year of actual work in the state sector. However, the price incentive is reduced when the basis for determining the discount is changed to the average auction price sold to other investors, not the original par value. Because the average auction price is often many times higher than the original par value, employees often have difficulty buying preferential shares.

In response to the new development of the economy, especially the changes since Vietnam joined the World Trade Organization - WTO, on June 26, 2007, the Government issued two decrees on the issue of equitization: Decree 109/2007/ND-CP on converting 100% state-owned enterprises into joint stock companies and Decree 110/2007/ND-CP on policies for redundant workers due to the restructuring of state-owned enterprises. Accordingly, employees are entitled to preferential purchase of up to 100 shares for each year of actual work in the state sector at a discount of 60% compared to the successful auction price sold to other investors. In addition, the benefits for redundant workers according to the provisions of Decree 110/2007/ND-CP are also determined depending on the type of labor contract (LDC) they sign. Compared to Decree 41/2002/ND-CP, there have been some changes suitable to the actual situation, but there are still many incentives compared to unemployed workers in other economic sectors.

Thus, after more than 15 years of equitization of SOEs, the law on equitization of SOEs in general, and the law on protecting the rights of employees during equitization in particular, have been continuously supplemented, amended, and improved to better suit the practical situation, in order to achieve the economic and social goals and tasks set by the Party and the State. At the same time, it brings optimal benefits to employees in enterprises. However, there are still many shortcomings and limitations that need to be further supplemented and improved.

2.2. Workers' rights and protection of workers' rights during and after the equitization of state-owned enterprises according to current laws

2.2.1 Employee rights and protection of employee rights during the equitization process according to current laws

Currently, the rights of employees when equitizing state-owned enterprises are subject to general regulations of the Labor Code, the Law on Social Insurance, along with regulations of the law on equitization, and policies for redundant employees due to the restructuring of state-owned enterprises. To meet practical requirements, on June 26, 2007, the Government issued two important documents: Decree No. 109/2007/ND-CP on converting 100% state-owned enterprises into joint stock companies (replacing Decree No. 187/2004/ND-CP) and Decree No. 110/2007/ND-CP on policies for redundant employees due to the restructuring of state-owned enterprises. These two decrees, together with guiding documents, have created the current legal basis to resolve and protect the rights of employees.

According to the provisions of Decree No. 109/2007/ND-CP and Circular No. 20/2007/TT-BLDTBXH guiding the implementation of Decree 109/2007/ND-CP, when there is a decision from a competent authority on the announcement of enterprise value, the enterprise equitization steering committee directs the support team to develop a labor use plan (in the equitization plan), submit it to the competent authority for approval and resolve the regime for employees. In the labor use plan,

Employees currently working at state-owned enterprises are divided into different groups: Employees continuing to work at joint stock companies, employees eligible for retirement, employees whose labor contracts will be terminated, employees who cannot be arranged jobs at joint stock companies at the time of enterprise value announcement. Each group of employees, in addition to having common rights such as: social insurance rights, stock ownership rights..., also has its own rights such as: pension, allowances... Therefore, the law on employee rights when equitizing state-owned enterprises is regulated differently for each group of employees, specifically as follows:

2.2.1.1 Rights of employees continuing to work at a joint stock company

According to Article 51 of Decree 109/2007/ND-CP: Employees whose names are on the regular list of the enterprise at the time of announcing the enterprise value are entitled to preferential policies in purchasing shares and becoming shareholders of the company. Article 54 of Decree 109/2007/ND-CP and Circular 20/2007/TT-BLDTBXH dated October 4, 2007 guiding the implementation of policies for employees according to Decree 109/2007/ND-CP, stipulate: Employees whose names are on the regular list of 100% state-owned enterprises at the time of announcing the enterprise value, including:

a) Business management positions are not subject to labor contracts;

b) Employees working under indefinite-term labor contracts (including employees recruited before August 30, 1990 who have not yet signed labor contracts);

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