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Circular 33/2012/TT-BLDTBXH on the retrenchment benefits when state owned enterprises (SOE) equitization

Circular 33/2012/TT-BLDTBXH on the severance package when state owned enterprises (SOE) carry out equitization

Employees upon termination of the contract by the equitized SOE will be provided severance allowance, specified in Circular 33/2012/TT-BLDTBXH.

Accordingly, to enjoy the severance allowance, employees must meet the conditions of the labor contract, competent to contract.

The duration calculated for allowance is the working time less the paid unemployment insurance time, and is calculated by year. From 1 to under 6 months, the duration will be rounded to half a year; from full 6 months to 12 months, the duration will be rounded to a year.

Compared to the previous regulations, Circular 33 provides more detailed guidance: Article 42 of the Labour Law, Decree 44/2003/ND-CP, Circular 21/2003/TT-BLDTBXH and Circular 17/2009/TT-BLDTBXH.

After May 1st 2013, this regime will be implemented by provisions of the Labor Law 2012.

Circular 33/2012/TT-BLDTBXH takes effect from May 2nd 2013.

ANT Lawyers

Tuan Nguyen

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