Subject to the application of this Circular are:

1. Enterprises, which are restructured under Article 17 of the Labor Code, including:

- Enterprises holding 100% of the State capital;

- Joint-stock companies converted from State enterprises with their restructure plans certified by the competent State agencies within 12 months after they are granted the business registration certificates under the Enterprise Law.

2. State enterprises, which are restructured in the conversion forms, including:

- State enterprises converted into one-member limited liability companies;

- State enterprises converted into joint-stock companies;

- Merged or consolidated State enterprises;

- Assigned, sold, commercially contracted or leased State enterprises.

3. State enterprises which are dissolved or go bankrupt.

The Circular also guides the retirement regime as well as allowances and funding sources for payment under this regime to laborers redundant from the reorganization of State enterprises.- (Summary)