DECREE No.90-CP OF DECEMBER 15, 1995 OF THE GOVERNMENT GIVING DETAILED STIPULATIONS AND GUIDANCE ON THE IMPLEMEN- TATION OF A NUMBER OF ARTICLES OF THE LABOR CODE ON VOCATIONAL TRAINING

THE GOVERNMENT

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- The job-training establishments mentioned in this Decree are:

1. Establishments of enterprises, organizations and individuals to give job training or supplementary job training to those who want to learn an occupation to seek employment or to start a business of their own;

2. Establishments of enterprises to give job training or supplementary job training to laborers to meet the demand for development of production and trade, for restructuring of production or technology of enterprises;

3. Job-training establishments of Job Placement Centers.

The system of regular vocational schools and establishments for long-term and short-term job training managed by the Ministry of Education and Training does not fall within the ambit of this Decree.

Article 2.- The Government encourages the enterprises, organizations and individuals qualified under Article 4 of this Decree to open job-training and supplementary job-training establishments for laborers, to create conditions for them to find a job and meet social demand for labor.

Article 3.- Everybody is free to choose an occupation and an occupational training establishment. The minors under 13 years of age are permitted to learn only a number of occupations defined by the Ministry of Labor, War Invalids and Social Affairs.

Chapter II

CONDITIONS FOR OPENING JOB-TRAINING ESTABLISHMENTS

Article 4.- The following conditions are required for opening job-training establishments according to Item 2, Article 20, of the Labor Code:

1. Those job-training establishments which organize courses must have the following conditions:

a/ Classrooms, practice workshops, equipment and means to give theoretical teaching and practice at the occupational standard already registered, and ensuring the conditions on labor safety and labor hygiene. If they enroll disabled people for job training, they must have the appropriate equipment and means for each type of disability.

b/ The occupation trainers must have the following conditions:

- The teachers who give lectures must have at least a certificate of a middle-level technical and professional school and have teaching qualifications;

- Those who give practice guidance must be skilled workers of at least two grades higher than the grade set for the trainees, must be skillful in practicing the occupation, or must be artisans, specialists, or practicing engineers;

c/ Having a curriculum and textbooks conforming to the standard curriculum and textbooks defined by the Ministry of Education and Training, and the aim of training.

2. Those job-training establishments which collect fees for training at workshop or at home must have the following conditions:

a/ A location and equipment for practicing the occupation they teach, and ensuring the conditions on labor safety and labor hygiene;

b/ Skilled trainers who give guidance for practice;

c/ Having enough tools and raw materials for the trainees to do practice.

Article 5.- The job-training establishments must register the contents of their activities with the Labor, War Invalids and Social Affairs Service as stipulated by the Ministry of Labor, War Invalids and Social Affairs, and have a license granted by this agency, except the following cases:

1. The job-training establishment which has fewer than 10 trainees doing practice at workshop or at home must report to the Labor, War Invalids and Social Affairs section and the People's Committee at the ward or commune where it is located;

2. The enterprise which opens an establishment to give job training or supplementary job training, or to re-train its workers to do other jobs in the enterprise; or to give job training to new recruits to work at the enterprise.

Chapter III

THE TASKS AND POWERS OF JOB-TRAINING ESTABLISHMENTS

Article 6.- With regard to those job-training establishments which have a legal person status, the directors must be responsible before the law for all activities of the establishments.

The director of a job-training establishment which has a legal person status or the director of an enterprise which has a job-training establishment is entitled to issue certificates of skills to those who have attended a course of study in compliance with the statute for issuance of certificates and with the form of certificate stipulated by the Ministry of Education and Training.

Article 7.- All job-training establishments must operate in accordance with the contents they have registered. In case an establishment wants to alter or supplement the contents of its activities, it must register the supplementation with the agency which has issued the license, or report it to the Labor, War Invalids and Social Affairs section and the People's Committee at the ward or commune where it is located, if it has fewer than 10 trainees doing practice. When a job-training establishment stops its activities, it must report and return its license to the agency which has issued the license.

1. A job-training establishment may organize job training in one or many forms: organizing theoretical study and practice in classroom; giving training at the workshop or at home with emphasis on practice, learning while working; transferring technology; disseminating new scientific and technological knowledge and advanced production experiences.

Those forms and contents of job training shall be carried out under a contract signed between the trainees and their units and the job-training establishment.

2. The establishments of the enterprises which give job training or supplementary job training to, or re-train their workers, may sign a contract with other job-training establishments to provide job training or supplementary job training or re-train workers. This activity in job training must comply with the general requirements for a job-training establishment.

Article 9.- In the process of carrying out a job-training contract, a job-training establishment and the trainees must strictly comply with the stipulations on labor safety and labor hygiene of the Labor Code and Decree No.06-CP of January 20, 1995 of the Government giving detailed stipulations on a number of articles of the Labor Code on labor safety and labor hygiene.

Article 10.-

1. A job-training establishment which enrolls disabled people, people of ethnic minorities, and culprits of social vices, or the job-training establishments in places with a high rate of unemployment or partial unemployment, and the traditional job-training establishments shall be considered for tax reduction.

2. Those job-training establishments reserved exclusively for disabled people, helpless orphans, people of ethnic minorities, culprits of social vices, which provide job training at the workshop or at home shall be exempted from tax.

The Ministry of Finance shall give concrete stipulations on the reduction and exemption of taxes.

Article 11.- The enterprises can use their reserve fund for severance allowances to provide job training, supplementary job training and re-training to those laborers who must be transferred to other occupations due to the restructuring of production or technology; and to provide training on secondary jobs to female workers free of charge.

Article 12.- The job-training establishments can collect fees as agreed to in the contract from the trainees or their units. Those trainees who are Heroes of the armed forces, Heroes of labor, war invalids, and people under preferential treatment policies like war invalids, children of fallen soldiers, children of war invalids, children of sick soldiers, and children of people beneficiaries of entitlement policies like war invalids are entitled to exemption or reduction of fees as stipulated in Decree No.28-CP of April 29, 1995 of the Government. Disabled trainees are entitled to exemption or reduction of fees as stipulated in Decree No.81-CP of November 23, 1995 of the Government.

Article 13.- Those job-training establishments which enroll disabled people for training can apply for low-interest loans from the job generation fund for disabled people of the provinces and cities directly under the Central Government when there is a job training project.

Those job-training establishments reserved exclusively for disabled people, helpless orphans, and people of ethnic minorities shall get investment from the Government for building schools and classrooms; buying teaching equipment and means; and training the teaching staff, and can apply for low-interest loans.

Article 14.- The job-training establishments can outline a job training project to draw investment from domestic and foreign organizations and individuals; can organize production workshops and services to make full use of raw materials, machinery and equipment to create favorable conditions for the practice of occupations. All income-generating production or service activity must comply with the provisions of law.

Article 15.- The job-training establishments of the Job Placement Centers can outline a project and request the agency in charge of the national fund for job generation to grant them a loan or partial funding.

Chapter IV

JOB-TRAINING CONTRACTS

Article 16.- The job-training establishments must sign a job-training contract with the trainees and their units which is done in duplicate with each side keeping a copy of it. If the time for job training is less than 15 days, a verbal arrangement may be made.

Article 17.-

1. A job-training contract made at job-training establishments must write clearly:

a/ Name of the target occupation;

b/ Aim of the training: The occupational level that must be obtained; the work that can be done; the products that can be produced after the training;

c/ The time for theoretical study and practice;

d/ The type of machine and equipment used for practice, the way of organizing practice, and the means for ensuring labor safety and labor hygiene;

e/ The place for study and practice;

f/ The rate of fees that must be paid; the percentage of fees that is exempted or reduced (if any), the mode of paying the fees;

g/ Whether the job-training establishment is responsible for finding job for the trainees or the latter have to find it by themselves.

h/ The settlement of the training fees when the training contract is infringed on is defined in Article 18 and Article 19 of this Decree.

2. When an enterprise enrolls new recruits for training and later working for it, the trainees do not have to pay the training fees. In this case, the training contract does not include Points (e) and (g) in Item 1 of this Article, but it must include the following:

a/ The time the trainees must work for the enterprise after the training;

b/ The rate of payment paid to the trainees when they directly make or take part in making products for the enterprise during the time of training. The rate of payment shall be fixed on the basis of profit and mutually agreed upon by both sides.

3. With regard to a training contract at the job-training establishments for training at the workshop or at home, apart from the stipulations in Item 1 of this Article, it must write clearly the time when the trainees begin to be paid and the rate of payment for them in each period of time. The rate of payment shall be fixed on the basis of profit and mutually agreed upon by both sides.

Article 18.-

1. When a trainee unilaterally terminates the contract before the expiry date, he/she shall not have the right to take back the fees he/she has paid. If for such reasons as doing military service, illness, death or failure by the job-training establishment to adhere to the training contract and other cases as stipulated by law, he/she can ask back the training fees for the remaining period of time.

2. If the job-training establishment unilaterally terminates the contract before the expiry date, it must report the reason to the State management agency in charge of job training. If this agency affirms that it is a case of force majeure, the job-training establishment shall not have to return to the trainees the fees it has collected. For other reasons, the job-training establishment must return to the trainees all the fees it has collected.

Article 19.- In case the enterprise enrolls new recruits for training and later working for it:

1. If a trainee deliberately drops out of the course before finishing it, or refuses to work after finishing the course, or works for a shorter period than he/she is committed to, he/she must compensate the enterprise for the cost of training. This cost of training includes spendings for the teachers, textbooks, classrooms, machines and equipment, and raw materials for doing practice. The rate of compensation shall be fixed by the enterprise, agreed upon in advance and clearly written in the training contract.

2. In case the enterprise does not sign a labor contract with the trainee, the latter shall not have to compensate it for the cost of training, and can sign a labor contract with others;

3. If during the process of carrying out her training contract with the enterprise, a female trainee is pregnant, and if she gets a doctor's certification that implementing the training contract would badly affect her pregnancy, she can terminate her contract without having to compensate the enterprise for the cost of training.

Chapter V

IMPLEMENTATION PROVISIONS

Article 20.- The Ministry of Labor, War Invalids and Social Affairs shall have to work with other Ministries, branches and localities in planning a system of job-training establishments according to this Decree and to the provisions of the Labor Code.

Article 21.- This Decree takes effect from the date of its signing. All stipulations made earlier for job-training establishments which are contrary to the Labor Code and to this Decree are now annulled.

Article 22.- The Ministers, the Heads of ministerial-level agencies, the Heads of the agencies attached to the Government, and the Presidents of the People's Committees directly under the Central Government shall have to implement this Decree.

On behalf of the Government,

For the Prime Minister,

Deputy Prime Minister,

PHAN VAN KHAI