Workers' rights when state-owned enterprises are equitized

According to Decree No. 126/2017/ND-CP, employees at equitized enterprises are allowed to buy a maximum of 100 shares for each year they actually contracted with the company at a selling price equal to 60% of the value of 1 share calculated at par value (VND 10,000/share).

The above subjects are allowed to buy a maximum of 100 shares for each year of actual work in the state sector at a selling price equal to 60% of the value of 01 share calculated at par value (VND 10,000/share).

For employees representing contracted households (each contracted household appoints one representative employee) at the time of determining the value of the equitized enterprise, having a stable long-term contract with an agricultural and forestry company when converting to a joint stock company, they can buy a maximum of 100 shares for each year of actual contracted work with the company at a selling price equal to 60% of the value of 01 share calculated at par value (VND 10,000/share).

The number of shares sold at preferential prices as prescribed above must be held by employees and not transferred within 03 years from the date of payment for purchasing preferential shares.

Illustration photo

The Decree also clearly stipulates that employees working under labor contracts and business managers of equitized enterprises at the time of determining the value of equitized enterprises, who are subjects that enterprises need to use and have a commitment to work long-term for the enterprise for a period of at least 03 years (from the date the enterprise is granted the first Certificate of Business Registration) will be allowed to buy additional shares according to the following provisions:

a- Buy additional shares at the rate of 200 shares/01 year of commitment to continue working in the enterprise, but not more than 2,000 shares for one employee.

Particularly, employees who are good experts with high professional qualifications are allowed to buy additional shares at the rate of 500 shares/01 year of commitment to continue working in the enterprise, but not exceeding 5,000 shares for one employee. The equitized enterprise, based on the characteristics of its industry and business sector, shall develop and decide on criteria to identify good experts with high professional qualifications, and must be unanimously approved at the enterprise's Labor Conference before equitization.

b- The selling price of shares for employees to purchase additional shares as prescribed in Point a is the starting price approved by the owner's representative body in the equitization plan.

c- Each employee is only entitled to purchase additional shares at a level specified in point a.

d- The number of additional shares purchased by employees as prescribed in Point a shall be converted into common shares after the end of the commitment period.

In case a joint stock company changes its structure, technology, relocates or reduces its production and business locations at the request of a competent state agency, leading to the employee having to terminate the labor contract, quit or lose his job according to the provisions of the Labor Code before the committed deadline, the additional shares purchased will be converted into common shares. In case the employee wants to resell these shares to the enterprise, the joint stock company is responsible for repurchasing them at a price close to the market price.

In case an employee terminates his/her labor contract before the committed term, he/she must sell back to the joint stock company all the additional shares purchased at a price close to the market transaction price but not exceeding the purchase price at the time of equitization.

The Decree clearly states that employees of enterprises restructuring to become joint stock companies through the Vietnam Debt Trading Company as prescribed in Clause 2, Article 4 of this Decree shall be entitled to the above policies according to the specific conditions of the enterprise and the restructuring plan approved by competent authorities.

Employees who need to buy additional shares in addition to the number of shares purchased according to the above regulations must register to buy in a public auction according to regulations like other investors.

Policy for surplus labor

Regarding surplus labor, the Decree stipulates that laborers working under labor contracts and laborers of equitized enterprises at the time of determining the value of the equitized enterprise who have been assigned to represent capital at other enterprises but cannot be arranged to work at the joint stock company according to the labor use plan will enjoy policies for surplus laborers according to the provisions of law.

The business manager is considered and assigned work by the owner's representative body. In case the owner's representative body has tried all measures but cannot arrange work, he/she will be entitled to policies similar to the policy on streamlining the payroll for cadres and civil servants according to the provisions of law.

The above-mentioned level II enterprise managers shall be considered and decided on by the Board of Members or the Chairman of the State-owned enterprises for work arrangement. In case all measures have been taken but work arrangement is not possible, the policy shall be resolved according to the provisions of the law on labor.

According to chinhphu.vn