At a press conference on 19/9, the Vietnam General Confederation of Labor (VGCL) announced that the government has issued Resolution 7, outlining policies for contract-based, full-time union staff affected by organizational restructuring.

Those who signed contracts before 15/1/2019 and whose salaries and allowances are sourced from union funds will be eligible for early retirement benefits if they choose to leave their positions immediately. They will receive a one-time allowance equivalent to 80% of that stipulated in Decree 178.

If they do not qualify for early retirement, they will be offered severance packages. These include a one-time allowance equal to 0.6 months of their current salary multiplied by the number of months eligible for the allowance, capped at 36 months. They will also receive an additional allowance of 1.5 months' salary for each year of service with social insurance contributions, retain their social insurance contribution period, or receive a lump-sum social insurance payment, and be eligible for unemployment insurance as per regulations.

Benefit payments will be completed before 1/11, funded by union finances under a decentralized system, with an estimated budget of approximately 400 billion VND.

Ho Thi Kim Ngan, deputy head of the VGCL’s Labor Relations Department, at the press conference on 19/9. Photo: Hong Chieu

Ho Thi Kim Ngan, deputy head of the VGCL’s Labor Relations Department, at the press conference on 19/9. Photo: Hong Chieu

Ho Thi Kim Ngan, deputy head of the VGCL’s Labor Relations Department, stated that while 511 individuals were initially proposed for benefits under Resolution 7, after review, 425 qualified. “Time is of the essence. All levels of the union must carefully review the dossiers to ensure accurate and complete calculations for timely payments and to guarantee the rights of the staff,” Ngan said, adding that the VGCL will soon issue implementation guidelines.

Nguyen Xuan Hung, VGCL vice president, described the 80% benefit level compared to Decree 178 as a "significant effort" to protect the rights of full-time union staff. He explained that this group was recruited during a period of urgent staffing needs. Many have served the system for over 11 years, with an average age of 39. This is a challenging time for them to find new employment while still having to care for their families and raise young children.

Decree 178 and previous guiding circulars did not cover full-time union staff with specialized, professional labor contracts. The VGCL has repeatedly submitted proposals to include this group.

Hong Chieu