Chương 5 Nghị định 187/2004/NĐ-CP: Chính sách đối với doanh nghiệp và người lao động sau cổ phần hoá

Chapter V

POLICIES APPLICABLE TO ENTERPRISES AND TO EMPLOYEES AFTER EQUITIZATION

Article 36. Incentives applicable to enterprises after they have been equitized

1. Incentives shall be applicable as in the case of newly-established enterprises in accordance with the provisions of the law on encouragement of investment, and equitized enterprises shall not be required to carry out procedures for issuance of a certificate of investment incentives.

Equitized enterprises which are listed on the securities market shall, in addition to the above- mentioned incentives, also be entitled to incentives in accordance with the provisions of the law on securities and the securities market.

2. Exemption from registration fees shall be granted with respect to any transfer of assets under the right of management and use of an equitized State owned enterprise to the ownership of the shareholding company.

3. Equitized enterprises shall be exempt from registration fees for the issuance of a business registration certificate upon conversion from a State owned enterprise into a shareholding company.

4. Equitized enterprises shall be entitled to maintain lease contracts for residential housing and other buildings of State agencies or shall be entitled to preferential treatment with respect to acquisition of such housing and buildings at the market price as at the time of equitization, in order to stabilize production and business activities.

5. Equitized enterprises shall be entitled to land use rights in accordance with the provisions of the Law on Land when the value of the enterprise undergoing equitization included the value of land use rights.

6. The regime applicable to State owned companies shall continue to apply to loans borrowed by equitized enterprises from commercial banks, finance companies and other credit institutions of the State.

7. Equitized enterprises shall be permitted to maintain and develop welfare funds in kind, such as cultural facilities, clubs, dispensaries, nursing homes and kindergartens, in order to ensure the welfare of employees of shareholding companies. Such assets shall be under the ownership of the labour collective and shall be managed by the shareholding company.

8. If after a State owned company converts into a shareholding company, some employees in the State owned company which has converted lose their jobs or cease work including voluntary cessation because of the need to restructure business operations or the need to change technology, then these issues shall be resolved as follows:

(a) Any employee who within twelve months from the date the shareholding company is issued with a business registration certificate loses his job as a result of the company restructure and falls within the category of retrenched employees of a reorganized State owned enterprise entitled to assistance pursuant to Decree No. 41-2002-ND-CP of the Government dated 11 April 2002, then such employee shall receive assistance from the Fund for Assistance of Retrenched Employees;

The remaining employees who lose their jobs or cease work shall be entitled to a retrenchment allowance or to an allowance for loss of work pursuant to the current law on labour and shall receive assistance from the State's proceeds from equitization of State owned companies as stipulated in article 35 of this Decree.

(b) If, within the following four years, employees lose their jobs or cease work, the shareholding company shall be responsible to pay them fifty (50) per cent of the total rate of allowance pursuant to the Labour Code, and the remaining fifty (50) per cent shall be paid from the State's proceeds from equitization of State owned companies as stipulated in article 35 of this Decree. After expiry of the above period, the shareholding company shall be responsible to pay the whole of the allowance to such employees.

Article 37. Employees of an equitized enterprise shall be entitled to the following incentives:

1. Employees named on the list of regular employees of the equitized enterprise as at the time of the decision on equitization, shall be entitled to purchase up to a maximum of one hundred (100) shares for each year of actual employment in the State sector at a discount rate of forty (40) per cent of the average auction price on sales to other investors.

2. Employees who transfer to work in the shareholding company shall continue to participate in social insurance and shall be entitled to benefits in accordance with current regulations.

3. Employees who satisfy the conditions for entitlement to pension benefits as at the time of equitization shall be entitled to receipt of a pension on retirement and to benefits in accordance with current regulations.

4. Employees who lose their jobs or who cease work at the time of equitization shall be paid retrenchment allowances and allowances on ceasing work in accordance with regulations.