Circular No. 04/2019/TT-BLDTBXH guiding the management of labor, wages, remuneration, and bonuses for small and medium-sized enterprise credit guarantee funds.

CIRCULAR

GUIDELINES FOR THE MANAGEMENT OF LABOR, WAGES, COMPENSATION, AND BONUSES FOR THE CREDIT GUARANTEE FUND FOR SMALL AND MEDIUM-SIZED ENTERPRISES

Pursuant to Decree No. 14/2017/NĐ-CP dated February 17, 2017, of the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor, Invalids, and Social Affairs;

BASED ON Decree No. 34/2018/NĐ-CP dated March 8, 2018 of the Government on the establishment, organization, and operation of the Credit Guarantee Fund for Small and Medium-sized Enterprises;

BASED ON Decree No. 51/2016/NĐ-CP dated June 13, 2016 of the Government on the management of labor, wages, and bonuses for employees working in a limited liability company with 100% state capital; Decree No. 52/2016/NĐ-CP dated June 13, 2016 of the Government on wages, compensation, and bonuses for managers of a limited liability company with 100% state capital;BASED ON Decree No. 52/2016/NĐ-CP dated June 13, 2016 of the Government on wages, compensation, and bonuses for managers of a limited liability company with 100% state capital;BASED ON Decree No. 52/2016/NĐ-CP dated June 13, 2016 of the Government on wages, compensation, and bonuses for managers of a limited liability company with 100% state capital;

Pursuant to the proposal of the Director of the Directorate of Labor Relations and Wages;

The Minister of Labor, Invalids, and Social Affairs issues this Circular to guide the implementation of the management of labor, wages, compensation, and bonuses for the Credit Guarantee Fund for Small and Medium-sized Enterprises;BASED ON Decree No. 34/2018/NĐ-CP dated March 8, 2018 of the Government on the establishment, organization, and operation of the Credit Guarantee Fund for Small and Medium-sized Enterprises (hereinafter referred to as Decree No. 34/2018/NĐ-CP);BASED ON Decree No. 34/2018/NĐ-CP dated March 8, 2018 of the Government on the establishment, organization, and operation of the Credit Guarantee Fund for Small and Medium-sized Enterprises (hereinafter referred to as Decree No. 34/2018/NĐ-CP);BASED ON Decree No. 34/2018/NĐ-CP dated March 8, 2018 of the Government on the establishment, organization, and operation of the Credit Guarantee Fund for Small and Medium-sized Enterprises (hereinafter referred to as Decree No. 34/2018/NĐ-CP);

Section 1. GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the management of labor, wages, compensation, and bonuses for employees, Chairperson, Director, Deputy Director, Chief Accountant, and Auditor of the Credit Guarantee Fund for Small and Medium-sized Enterprises as stipulated in Decree No. 34/2018/NĐ-CP dated March 8, 2018 of the Government on the establishment, organization, and operation of the Credit Guarantee Fund for Small and Medium-sized Enterprises (hereinafter referred to as Decree No. 34/2018/NĐ-CP), including:

1. The Credit Guarantee Fund for Small and Medium Enterprises is established, organized, and operates according to the provisions of Decree No. 34/2018/NĐ-CP.

2. The Credit Guarantee Fund for Small and Medium-sized Enterprises operates under Decision No. 58/2013/QĐ-TTg dated October 15, 2013 of the Prime Minister promulgating the Charter for the establishment, organization, and operation of the Credit Guarantee Fund for Small and Medium-sized Enterprises, which has reorganized its organizational structure and supplemented its charter capital according to Decree No. 34/2018/NĐ-CP.

The Credit Guarantee Funds for Small and Medium Enterprises specified in Clause 1 and Clause 2 of this Article hereinafter shall be collectively referred to as the Credit Guarantee Fund.

Article 2. Applicability

1. Employees working under labor contracts.

2. Chairperson, Director, Deputy Directors, Chief Accountant, and Auditor (hereinafter collectively referred to as managers).

3. Agencies, organizations, and individuals related to the management of labor, wages, remuneration, and bonuses as stipulated in this Circular.

Chapter 2. MANAGEMENT OF LABOR, WAGES, AND BONUSES FOR EMPLOYEES

||| Article 3. Wage Scale, Payroll, and Allowances

The Credit Guarantee Fund establishes wage scales, wage tables, allowances, and wage adjustments for employees in accordance with Article 93 of the Labor Code, Decree No. 49/2013/NĐ-CP dated May 14, 2013 of the Government detailing certain provisions of the Labor Code regarding wages, and Circular No. 17/2015/TT-BLĐTBXH dated April 22, 2015 of the Ministry of Labor, Invalids, and Social Affairs guiding the establishment of wage scales, wage tables, allowances, and wage adjustments for employees in a limited liability company with 100% state ownership.

Article 4. Labor Management, Determination of Salary Fund, Advance Payment of Salary Fund, Distribution of Salaries, and Bonuses

1. The Credit Guarantee Fund implements labor management, determines the planned wage fund, actual wage fund, advance payments, and distribution of wages and bonuses for employees in accordance with Section 2; Clause 9, 10, 13 Section 3 and Section 4 of Circular No. 26/2016/TT-BLĐTBXH dated September 1, 2016 of the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of labor management, wages, and bonuses for employees working in a limited liability company with 100% state capital (hereinafter referred to as Circular No. 26/2016/TT-BLĐTBXH).

2. When determining the average planned wage level, the average actual wage level to calculate the planned wage fund and the actual wage fund as stipulated in Article 9 and Article 14 of Circular No. 26/2016/TT-BLĐTBXH, the profit indicator (planned profit, actual profit for the year, and actual profit for the immediately preceding year) shall be calculated based on the difference between total income and total expenses (hereinafter referred to as income minus expenses) of the Credit Guarantee Fund.

Article 5. Exclusion of Objective Factors when Determining Planned Salary Funds and Actual Salary Funds for Workers

1. When determining the planned wage fund and the actual wage fund for employees, the Credit Guarantee Fund excludes objective factors affecting labor productivity and income minus expenses, including:

a) The impact of objective factors stipulated in Article 11 of Circular No. 26/2016/TT-BLDTBXH;

b) The State adjusts credit guarantee fee policies affecting the financial results of the Credit Guarantee Fund or waives/reduces credit guarantee fees as provided for in Point b, Clause 2, Article 49 of Decree No. 34/2018/NĐ-CP.

2. The exclusion of objective factors as stipulated in Clause 1 of this Article must be quantified with data and excluded according to the principle: Objective factors reducing labor productivity and income minus expenses shall be added to the labor productivity and income minus expenses reduction indicators; Objective factors increasing labor productivity and income minus expenses shall be deducted from the labor productivity and income minus expenses increase indicators.

Section 3. SALARY, COMPENSATION, AND BONUS FOR MANAGEMENT PERSONNEL

Article 6. Classification of salaries and transfer of salary classification for responsible managers of credit guarantee funds

The credit guarantee fund shall implement the classification of salaries and transfer of salary classification for responsible managers in accordance with the provisions of Section 2 of Circular No. 27/2016/TT-BLDTBXH dated September 1, 2016, issued by the Ministry of Labor, Invalids and Social Affairs to guide the implementation of wage systems, remuneration, and bonuses for managers of joint-stock companies wholly owned by the State (hereinafter referred to as Circular No. 27/2016/TT-BLDTBXH). Based on the classification criteria issued in the Appendix attached to this Circular, the credit guarantee fund shall rank the managers to determine the level of wages and basic salaries for responsible managers.

Article 7. Determining the Salary, Compensation, and Bonus Fund for Management Personnel

1. The determination of average wage levels, wage funds, planned remuneration; actual wage funds, remuneration; bonus funds; payment of wages, remuneration, and bonuses for managers of credit guarantee funds shall be carried out in accordance with the provisions of Articles 3, 9, 11, 12, 14, 15, 16, 17, 18 and Clause 1, 3, 4, 5, 6 of Article 10 of Circular No. 27/2016/TT-BLDTBXH.

2. When determining the average wage level, planned wage fund, and actual wage fund for responsible managers as stipulated in Clause 1 of this Article, profit indicators (planned profit, profit realized in the year, and profit realized in the immediately preceding year) shall be calculated based on the difference between income and expenditure, provided that the credit guarantee fund meets the following conditions: preservation and development of state capital; payment of taxes and budget contributions, and risk reserve funds in accordance with the provisions of the law; average labor productivity does not decrease and the planned income-expenditure difference is higher than the previous year's actual difference, then the planned average wage level for responsible managers shall be determined as follows:

TL_bqkh = TL_cb + TL_cb x H_ln

Where:

- TL_bqkh: Planned average salary level for dedicated management personnel;

- TL_cb: Basic salary of dedicated management personnel determined in accordance with Clause 1 of Article 10 of Circular No. 27/2016/TT-BLDTBXH;

- Central agencies of political-social organizations;_{lFor power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.}: Additional salary coefficient compared to the basic salary linked to the income-expense difference as follows: if the difference is less than three billion VND, H_{lFor power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.} is calculated at a maximum of 0.3; if the difference is from three billion to less than five billion VND, H_{lFor power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.} is calculated at a maximum of 0.5; if the difference is from five billion to less than ten billion VND, H_{lFor power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.} is calculated at a maximum of 0.7; if the difference is ten billion VND or more, H_{lFor power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.} is calculated at a maximum of 1.0.

3. When determining remuneration for non-responsible managers, if the credit guarantee fund does not have corresponding responsible managers to determine the remuneration for non-responsible managers according to Clause 2, Article 3 of Circular No. 27/2016/TT-BLDTBXH, it shall be implemented as follows:

a) Determine the maximum salary level for each dedicated management personnel in accordance with Clause 2 of this Article;

b) Determine the remuneration for non-responsible managers based on their work and working hours, but not exceeding 20% of the wage level of corresponding responsible managers as specified in point a, Clause 3 of this Article.

Article 8. Exclusion of Objective Factors When Determining Wages, Fees, and Bonuses for Managers

When determining planned wage funds and remuneration; actual wage funds and remuneration, the credit guarantee fund shall exclude objective factors affecting labor productivity and income-expenditure differences as stipulated in Article 5 of this Circular.

Section 4. RESPONSIBILITY FOR IMPLEMENTATION AND EFFECTIVENESS OF ENFORCEMENT

Article 9. Responsibility for Implementation

1. Responsibilities of the Credit Guarantee Fund:

a) The Director of the Credit Guarantee Fund is responsible for performing the tasks stipulated in Article 17 of Circular No. 26/2016/TT-BLDTBXH;

b) The Chairman of the credit guarantee fund shall be responsible for performing the tasks prescribed in Article 18, Clause 4 of Article 22 of Circular No. 26/2016/TT-BLDTBXH; Article 20, Clause 4 of Article 25 of Circular No. 27/2016/TT-BLDTBXH. When submitting wage and bonus reports to the representative body of the owner, they must also submit to the Ministry of Labor, Invalids and Social Affairs for general monitoring, inspection, and supervision;

c) The Inspector shall be responsible for performing the tasks prescribed in Article 19 of Circular No. 26/2016/TT-BLDTBXH, Article 21 of Circular No. 27/2016/TT-BLDTBXH, and in accordance with the Charter of organization and operation of the credit guarantee fund.

2. The representative body of the owner for the credit guarantee fund shall be responsible for performing the tasks prescribed in Article 20 of Circular No. 26/2016/TT-BLDTBXH; Article 19, Article 22 of Circular No. 27/2016/TT-BLDTBXH. When submitting opinions to the fund regarding annual wage and bonus funds, they must also submit to the Ministry of Labor, Invalids and Social Affairs for general monitoring and supervision.

Article 10. Effective Date

1. This Circular takes effect from March 8, 2019. The regulations set forth in this Circular shall be applied to determine wage funds, remuneration, bonuses, and payment of wages, remuneration, and bonuses from January 1, 2019.

2. For credit guarantee funds for small and medium-sized enterprises operating under Decision No. 58/2013/QD-TTg dated October 15, 2013 of the Prime Minister but have not yet reorganized their organizational structure and supplemented registered capital as prescribed in Decree No. 34/2018/NĐ-CP, they shall continue to manage labor, wages, remuneration, and bonuses in accordance with Circular No. 26/2016/TT-BLDTBXH and Circular No. 27/2016/TT-BLDTBXH.

During implementation, if there are any difficulties, agencies and organizations are requested to report to the Ministry of Labor, Invalids, and Social Affairs for timely guidance and supplementation.