On October 25, 2016, the Ministry of Labor, War Invalids and Social Affairs issued the Circular No. 35/2016/TT-BLDTBXH providing guidance on implementation of employee policies in the context of transformation of public service establishments into Joint-Stock Companies under the Prime Minister’s Decision No. 22/2015/QD-TTg dated June 22, 2015.
Employees that appear on the regular employee list of a transformed public service establishment as of the date of valuation of a transformed public service establishment (the date of closing of its accounting book, preparation of its financial statement for determination of value of that public service establishment) shall be entitled to distributions of the residual cash amount of the incentive, welfare fund (after offsetting payments in excess of benefits paid to employees), or revenue of the income stabilization fund (where available) in proportion to work term duration (number of years of employment or a full year) from the date of final recruitment into a transformed public service establishment to the date of valuation of the public service establishment for transformation into the joint-stock company. Distributing residual cash amounts of the incentive and welfare fund and revenue of the reserve fund for income stabilization in the fractional part of number of years of employment shall be subject to the transformed public service establishment’s decision.
Employees appearing on the regular employee list as of the date of announcement of value of a transformed public service establishment shall be entitled to purchase shares at preferential prices in proportion to the time period for which they have actually worked in the public sector.
This Circular takes effect on December 10, 2016.
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