If your enterprise is facing difficulties in its accounting system and needs to make changes to its accounting personnel, you may be looking for a downloadable Word template for a Decision on Dismissal of the Chief Accountant. In the following guidance, KMC’s experts provide detailed instructions on how to issue a Decision on Dismissal of the Chief Accountant, helping enterprises—especially FDI enterprises—carry out the dismissal process promptly, smoothly, and in compliance with the law, thereby minimizing legal risks.
Download Now: Word Template – Decision on Dismissal of Chief Accountant
If you need to download the most up-to-date and accurate template for the Decision on Dismissal of the Chief Accountant, please click the download link below:
Download Now: Decision on Dismissal of Chief Accountant Template
Legal Basis for Issuing a Decision on Dismissal of the Chief Accountant
To ensure that your decision carries solid legal validity, it is essential to clearly understand its legal grounds. The following key legal documents serve as the foundation:
- Law on Accounting 2015: Prescribes standards, conditions, rights, and obligations of the Chief Accountant.
- Law on Enterprises 2020: Provides regulations on the authority of the Members’ Council/Company Owner and the Director/General Director in appointing, relieving, or dismissing managerial positions.
- Decree No. 174/2016/NĐ-CP: Details and guides the implementation of several articles of the Law on Accounting, including provisions relating to the Chief Accountant.
- Company Charter: An important internal document that may provide more specific procedures and requirements regarding dismissal.
Distinguishing Between “Dismissal” and “Relief from Duty” of the Chief Accountant
Many people still confuse the two terms—dismissal and relief from duty—leading to the use of inappropriate documents. To help you clearly understand the difference between these two concepts, please refer to the explanation below:
- Dismissal: A form of termination of duties due to violations, failure to fulfill job responsibilities, or failure to meet the required standards or conditions. This action is generally disciplinary in nature.
- Relief from duty: A form of termination of duties even though the individual still meets the required standards and conditions; however, they are relieved from the position based on personal request or due to the company’s restructuring or personnel reorganization. This action is voluntary or objective in nature.
Understanding these two terms ensures that the enterprise selects the appropriate terminology for the document and makes the correct decision for each specific case.
Legitimate Cases for Dismissal of the Chief Accountant
The dismissal of a Chief Accountant is a significant decision for any enterprise; therefore, the company must ensure that such decision is made on a proper and lawful basis to avoid potential issues, including legal risks. Below are common and legally accepted circumstances:
- The Chief Accountant commits serious violations of accounting or financial regulations.
- Failure to fulfill assigned duties and responsibilities, causing damage to the company.
- Being subject to disciplinary action in the form of demotion or removal under internal regulations.
- No longer meeting the standards and conditions required for the position of Chief Accountant in accordance with the Law on Accounting.
- Any other violations of law or conduct deemed inappropriate for continuing in this position.
Internal Procedures for Dismissal of the Chief Accountant
The process of issuing a decision on the dismissal of the Chief Accountant must be transparent and compliant with legal requirements. Below are the fundamental steps to ensure accuracy and legality:
- Proposal and preparation of documentation:
The individual/department with authority (typically the Director or the Board of Management) proposes the dismissal. Relevant documents and evidence supporting the grounds for dismissal must be compiled. - Approval and issuance of the decision:
Prepare the Decision on Dismissal of the Chief Accountant and submit it to the competent authority (General Director, Chairman of the Members’ Council, depending on the Company Charter) for signature and approval. - Notification and handover:
Inform the dismissed individual and relevant departments of the decision. Conduct the handover of duties, documents, and accounting seals (if any) between the outgoing Chief Accountant and the interim/new appointee. A complete handover record must be prepared and signed.
Guidance on Completing the Decision on Dismissal of the Chief Accountant
Although a template is provided, many enterprises still make errors when completing the document. To avoid such mistakes, consider the following instructions:
- Legal basis section:
Enter the full names of the relevant legal documents and the Company Charter as mentioned above. This ensures the highest level of legal validity for the decision. - Content section:
– Enter the full legal name of the company and its enterprise registration number.
– Specify the full name and position of the individual being dismissed.
– Clearly and concisely state the reason for dismissal.
Example: “Due to serious violations of the Company’s financial regulations, adversely affecting business operations.”
– Indicate the effective date of the dismissal. - Signature section:
The signatory must be the person legally authorized to issue such decisions under the Company Charter and relevant laws. Clearly state the full name, title, and ensure the signature and corporate seal (if applicable) are properly affixed.
Mandatory Procedures When Dismissing the Chief Accountant
To complete the dismissal process and avoid future legal complications, enterprises must notify the tax authority and the business registration authority upon issuing the internal Decision on Dismissal of the Chief Accountant, as follows:
1. Notification to the Tax Authority
Required documents:
- Form 08-MST – Application for change of taxpayer information.
- Certified copy of the Decision on Dismissal of the Chief Accountant.
- Certified copy of the Decision on Appointment of the new Chief Accountant (if available).
Deadline: Within 10 working days from the official date of the dismissal decision.
2. Notification to the Department of Planning and Investment (where the enterprise is registered)
Required documents:
- Notice of changes to enterprise registration details (Form No. 08).
- Certified copy of the Decision on Dismissal of the Chief Accountant.
- Minutes of the meeting/Members’ Council Resolution regarding this matter (if applicable).
Deadline: Within 10 working days from the date of the change.
Compliance with these procedures helps the enterprise avoid administrative penalties and ensures the continuity and legality of accounting and tax operations.
Frequently Asked Questions Regarding the Dismissal of the Chief Accountant
Who has the authority to sign the Decision on Dismissal of the Chief Accountant?
After receiving the dismissal decision, the Chief Accountant must hand over all accounting tasks, documents, vouchers, books, and any other assets related to the accounting function to the designated successor.
The entire handover process must be documented in a written handover record with full signatures of all parties involved.
What are the responsibilities of the Chief Accountant after being dismissed?
After receiving the dismissal decision, the Chief Accountant must hand over all accounting tasks, documents, vouchers, books, and any other assets related to the accounting function to the designated successor.
The entire handover process must be documented in a written handover record with full signatures of all parties involved.
What should the company do after dismissing the former Chief Accountant?
In addition to notifying the relevant State authorities, the enterprise should promptly appoint a new Chief Accountant who meets the statutory qualifications to ensure that accounting operations are not disrupted.
KMC has provided detailed explanations regarding the Decision on Dismissal of the Chief Accountant and the important considerations involved. If you are facing difficulties in the dismissal or relief-from-duty process, or if you need in-depth advisory services to avoid legal risks in accounting and taxation matters:
Contact KMC – a leading provider of tax and accounting services, especially for FDI enterprises.
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