Decree No. 121/2016/ND-CP on Pilot Management of Labor and Wages for the Military Telecommunications Group for the Period 2016-2020

DECREE

TRIAL MANAGEMENT OF LABOR AND WAGES

FOR THE MILITARY COMMUNICATIONS GROUP PERIOD 2016 - 2020 

organization of the issued by the Government on June 19, 2015;

Pursuant to the Labor Code dated June 18, 2012;

Pursuant to the Enterprise Law dated December 8, 2014;

Pursuant to the Law on State Capital Management for Investment in Production and Business at Enterprises dated November 26, 2014;Based on the proposal of the Minister of Labor, War Invalids and Social Affairs and the Minister of National Defense;The Government promulgates this Decree on trial management of labor and wages for the Military Communications Group during the period 2016 - 2020.

This Decree stipulates the trial management of labor and wages during the period 2016 - 2020 for the Parent Company - Military Communications Group; a limited liability company wholly owned by the Parent Company - Military Communications Group; holding companies and companies held over 50% of charter capital by the Parent Company - Military Communications Group.1. Enterprise managers include: Chairman of the Board of Members or Chairman of the Company, members of the Board of Members, Head of the Supervisory Board, Supervisor, General Director or Director, Deputy General Director or Deputy Director, Chief Accountant of the Parent Company - Military Communications Group; a limited liability company wholly owned by the Parent Company - Military Communications Group.

2. Workers are officers, professional soldiers, workers, defense civil servants, employees working under labor contracts as prescribed by the Labor Code of the Parent Company - Military Communications Group; a limited liability company wholly owned by the Parent Company - Military Communications Group. 3. Persons authorized in writing by the Parent Company to exercise the rights and responsibilities of the representative of the owner's share in holding companies and companies held over 50% of charter capital by the Parent Company - Military Communications Group (hereinafter referred to collectively as the representative of the Parent Company's share).6 - 2020.

Article 1. Scope of Regulation

Companies specified in Article 1 of this Decree shall manage labor as follows:

Article 2. Applicability

2. Annually, based on volume, quality, requirements, and tasks of production and business, develop a labor plan as the basis for recruitment and utilization of labor according to the provisions of the Labor Code, the Officer Law of the Vietnam People's Army, the Law on Professional Soldiers, Workers, and Defense Civil Servants, guiding documents, and the company's charter; report to the representative body of the owner for comments before implementation (for holding companies and companies held over 50% of charter capital by the Parent Company - Military Communications Group through reports from the representative of the Parent Company's share).

4. In the fourth quarter of each year, evaluate the implementation of the labor plan to serve as the basis for developing the next year's labor plan; in cases where recruitment exceeds the plan leading to unemployed workers, they must be dismissed or their labor contracts terminated, and full benefits must be provided to the workers according to relevant laws.

1. The subjects specified in Clause 1, 2, and 3 of Article 2 of this Decree continue to have their salaries and allowances determined according to the salary scale and allowance table issued together with Decision No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on the wage system for cadres, civil servants, public officials, and armed forces personnel.

The company specified in

Article 3. Labor Management

2. The subjects specified in Clause 1 of Article 2 of this Decree who are not officers or professional soldiers shall have their salaries determined according to Appendix I issued together with Decision No. 52/2016/NĐ-CP dated June 13, 2016 of the Government on wages, remuneration, and bonuses for managers of limited liability companies wholly owned by the State.

1. Review the organizational structure, staffing norms, and determine job positions to ensure effective recruitment and utilization of labor.

3. The subjects specified in Clauses 2 and 3 of Article 2 of this Decree, who are workers and defense civil servants, shall have their salaries and allowances determined according to the regulations of the Government and guidelines of the Ministry of National Defense.

3. Implement recruitment and labor use in accordance with relevant laws and the company's regulations.

4. Subjects not included in the salary determination provisions of Clauses 1, 2, and 3 of this Article shall have their salaries and allowances determined according to the salary scale and table established and decided by the company in accordance with Decision No. 49/2013/NĐ-CP dated May 14, 2013 of the Government detailing certain provisions of the Labor Code regarding wages.

4. In the fourth quarter of each year, evaluate the implementation of the labor plan to build the next year's labor plan; in cases where recruitment exceeds the plan, leading to unemployed workers, they must be dismissed or their employment contracts terminated, and full benefits must be provided to the workers in accordance with relevant laws.

1. The subjects specified in Clauses 1, 2, and 3 of Article 2 of this Decree are officers and professional military personnel who continue to be graded according to the salary scale, salary table, and salary allowances issued together with Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on the salary system for cadres, civil servants, public officials, and armed forces personnel.

2. The subjects specified in Clause 1 of Article 2 of this Decree are not officers and professional military personnel implementing salaries according to Appendix I issued together with Decree No. 52/2016/NĐ-CP dated June 13, 2016 of the Government stipulating salaries, remuneration, and bonuses for managers of state-owned joint stock companies with 100% state capital.

3. The subjects specified in Clauses 2 and 3 of Article 2 of this Decree are defense workers and public officials who are graded according to the regulations of the Government and guidelines of the Ministry of National Defense.

4. Subjects not falling within the scope of those graded under Clauses 1, 2, and 3 of this Article shall be graded according to the salary scale and salary allowances established and decided by the company in accordance with Decree No. 49/2013/NĐ-CP dated May 14, 2013 of the Government detailing the implementation of certain provisions of the Labor Code concerning salaries.

Article 5. Management of wages for the Parent Company - Military Telecommunications Group

1. The Parent Company - Military Telecommunications Group shall be assigned to stabilize the unit wage rate (calculated based on total revenue minus total costs excluding wages) during the period from 2016 to 2020 based on the average unit wage rate implemented during the period from 2011 to 2015 provided that all conditions are met: Successfully completing national defense and security tasks assigned by the Party and State; paying taxes to the state budget as prescribed by law; the average wage increase rate must be lower than the average labor productivity increase rate; and annual profit realized must be at least 3% higher than the profit realized in the immediately preceding year.

2. The wages of enterprise managers shall be included in the unit wage rate and the wage fund implemented by the Parent Company - Military Telecommunications Group.

3. The annual wage fund of the Parent Company - Military Telecommunications Group shall be determined based on the stabilized unit wage rate assigned according to Clause 1 of this Article, the total revenue minus total costs excluding wages implemented in accordance with laws on corporate income tax, and ensuring that the average wage increase rate is lower than the average labor productivity increase rate; in cases where profits do not meet the requirements stipulated in Clause 1 of this Article, the implemented wage fund must be reduced by the percentage of unmet profit compared to the specified condition.

4. When determining the implemented wage fund, the Parent Company - Military Telecommunications Group shall exclude objective factors affecting realized profit and labor productivity compared to the previous year, including: Implementing national defense and security tasks assigned by the State and the Ministry of Defense; the State adjusting prices (for products and services priced by the State); corporate income tax incentives; increases or decreases in state capital; the State adjusting mechanisms, policies, or requiring the company to relocate or reduce production and business locations directly impacting labor productivity and profit indicators; implementing political tasks, ensuring social welfare, and balancing supply and demand in the economy as decided by the Prime Minister; receiving or transferring ownership rights over state capital in restructured enterprises, debt resolution, and restructuring as directed by the Prime Minister; new investments and expansion of production and business activities; increased depreciation to recover capital faster than prescribed by law after approval by competent authorities; natural disasters, fires, epidemics, wars, and other unforeseeable objective factors.

Article 6. Management of wages for a single-member limited liability company held 100% by the Parent Company - Military Telecommunications Group

1. A single-member limited liability company held 100% by the Parent Company - Military Telecommunications Group shall be assigned to stabilize the unit wage rate (calculated based on total revenue minus total costs excluding wages or based on total product or converted total product) during the period from 2016 to 2020 based on the average unit wage rate implemented during the period from 2011 to 2015 provided that all conditions are met: Successfully completing national defense and security tasks assigned by the Party and State; paying taxes to the state budget as prescribed by law; the average wage increase rate must be lower than the average labor productivity increase rate; and annual profit realized must not be lower than the profit realized in the immediately preceding year.

The average unit wage rate implemented during the period from 2011 to 2015 shall be calculated based on the implemented wage fund and total revenue minus total costs excluding wages or total product or converted total product implemented annually during the period from 2011 to 2015.

2. The wages of enterprise managers shall be included in the unit wage rate and the wage fund implemented by the single-member limited liability company held 100% by the Parent Company - Military Telecommunications Group.

3. The annual wage fund of the single-member limited liability company held 100% by the Parent Company - Military Telecommunications Group shall be determined based on the stabilized unit wage rate assigned according to Clause 1 of this Article, total revenue minus total costs excluding wages or total product or converted total product implemented, and ensuring that the average wage increase rate is lower than the average labor productivity increase rate; in cases where profits do not meet the requirements stipulated in Clause 1 of this Article, the implemented wage fund must be reduced by the percentage of unmet profit compared to the specified condition.

4. When determining the implemented wage fund, the single-member limited liability company held 100% by the Parent Company - Military Telecommunications Group shall exclude objective factors affecting realized labor productivity and profit in the year compared to the previous year as stipulated in Clause 4 of Article 5 of this Decree.

Article 7. Management of wages for joint-stock companies held over 50% of charter capital by Military Post and Telecommunications Corporation's Parent Company.

The representative of the Parent Company shall decide or participate with the Board of Members or the Board of Directors, or the General Meeting of Shareholders to decide on: Stabilizing unit wage prices; including the wage of business managers within the unit wage price and the actual wage fund of the company; determining the annual actual wage fund linked to labor productivity and business efficiency of the corporation and company during the period from 2016 to 2020.

Article 8. Distribution of Wages

Joint-stock companies specified in Article 1 of this Decree shall distribute wages as follows:

1. Establishing a wage reserve fund for the following year not exceeding 17% of the actual wage fund of the company.

2. Establish a wage system based on job positions, linking wages to labor productivity, business efficiency, and the completion of tasks by business managers and employees. The wage system must ensure democracy, transparency, and involve the representative organization of workers at the grassroots level before implementation (for corporations and companies held over 50% of charter capital by Military Post and Telecommunications Corporation's Parent Company through reports from the Parent Company's representative).

3. Implement temporary advance payments and wage disbursements for enterprise managers and employees according to the law and the company's wage regulations.

Article 9. Implementation responsibilities

1. Chairman of the company, General Director of Military Post and Telecommunications Corporation's Parent Company

a) In the first quarter of each year, organize the review of labor norms; develop plans for labor, planned wage funds, and actual wage funds of the previous adjacent year of Military Post and Telecommunications Corporation's Parent Company; approve or submit for approval according to authority the plan for labor use, planned wage funds, and actual wage funds of the previous adjacent year of Military Post and Telecommunications Corporation's Parent Company, and send to the Ministry of National Defense, Ministry of Labor, Invalids and Social Affairs, and Ministry of Finance for supervision and inspection.

b) Develop and issue the wage system of Military Post and Telecommunications Corporation's Parent Company in accordance with this Decree after receiving opinions from the Ministry of National Defense; send to the Ministry of National Defense, Ministry of Labor, Invalids and Social Affairs, and Ministry of Finance for monitoring and supervision.

c) Decide on the level of establishment of the wage reserve fund, implement temporary advance payments, and pay wages to employees and enterprise managers according to the company's wage regulations.

d) Determine the average actual wage rate for the period from 2011 to 2015 and assign a stable wage rate to wholly-owned limited liability companies held by Military Post and Telecommunications Corporation's Parent Company according to Clause 1 of Article 6 of this Decree, while sending to the Ministry of National Defense for supervision and inspection; receive and consider reports and provide comments for the Board of Members of the wholly-owned limited liability company to approve or approve according to authority the plan for labor use, planned wage funds, actual wage funds, salary scale, pay table, and wage system of the wholly-owned limited liability company held by the parent company.

đ) Direct the representative of the Parent Company to decide or participate with the Board of Members or the Board of Directors to implement the assignment of a stable wage rate and manage labor and wages for corporations and companies held over 50% of charter capital by Military Post and Telecommunications Corporation's Parent Company according to the provisions of this Decree; receive, examine, and provide comments on reports from the Parent Company's representative regarding the management of labor and wages for corporations and companies held over 50% of charter capital by Military Post and Telecommunications Corporation's Parent Company.

e) Annually, compile the situation of labor, wages, and income of workers and managers in wholly-owned limited liability companies held by Military Post and Telecommunications Corporation's Parent Company and corporations and companies held over 50% of charter capital by Military Post and Telecommunications Corporation's Parent Company, and send to the Ministry of National Defense, Ministry of Labor, Invalids and Social Affairs, and Ministry of Finance for monitoring.

g) In the third quarter of 2020, organize a summary and report to the Ministry of National Defense, Ministry of Labor, Invalids and Social Affairs, and Ministry of Finance on the results of piloting the management of labor and wages for the Military Post and Telecommunications Corporation during the period from 2016 to 2020 as stipulated in this Decree.

2. Chairman of the Board of Members or Chairman of the wholly-owned limited liability company held 100% of charter capital by Military Post and Telecommunications Corporation's Parent Company

b) Report to the agency representing the owner before approving or approving within their authority the plan for labor utilization, planned wage funds, actual wage funds, salary scales, wage tables, and wage regulations of the company.

b) Report to the representative body of the owner before approving or approving according to authority the plan for labor use, planned wage funds, actual wage funds, salary scale, pay table, and wage system of the company.

c) In the third quarter of 2020, organize a summary of the pilot implementation of labor and wage management during the period from 2016 to 2020 as stipulated in this Decree, report to Military Post and Telecommunications Corporation's Parent Company, and simultaneously send to the Ministry of National Defense, Ministry of Labor, Invalids and Social Affairs, and Ministry of Finance.

3. General Director or Director of the wholly-owned limited liability company held 100% of charter capital by Military Post and Telecommunications Corporation's Parent Company

a) In the first quarter of each year, organize the review of labor norms; develop plans for labor, planned wage funds, and actual wage funds of the previous adjacent year of the company; approve or submit for approval according to authority the plan for labor use, planned wage funds, and actual wage funds of the previous adjacent year of the company, and send to Military Post and Telecommunications Corporation's Parent Company and the Ministry of National Defense for monitoring and inspection.

b) Develop and issue the wage system of the company in accordance with this Decree after receiving opinions from Military Post and Telecommunications Corporation's Parent Company, and send to Military Post and Telecommunications Corporation's Parent Company, the Ministry of National Defense, Ministry of Labor, Invalids and Social Affairs, and Ministry of Finance for monitoring and supervision.

c) Decide on the level of establishment of the wage reserve fund, implement temporary advance payments, and pay wages to employees and enterprise managers according to the company's wage regulations.

4. Representative of the Parent Company's Capital

a) Provide opinions to the Board of Members or the Board of Directors of the company to consider and decide or decide on the management of labor and wages for holding companies and companies under the Parent Company - Military Industry and Telecommunications Group

a) Provide comments to the Board of Members or the Board of Directors of the company to consider and decide on the management of labor and wages for corporations and companies held over 50% of charter capital by Military Post and Telecommunications Corporation's Parent Company according to this Decree.

b) Report and seek opinions from the owner on matters related to the management of labor and wages at corporations and companies held over 50% of charter capital by Military Post and Telecommunications Corporation's Parent Company during the implementation of the pilot program.

c) Propose to the Board of Members or the Board of Directors to conduct a pilot management summary of labor and salary at the company in accordance with this Decree, and report the results of implementation to the Military Post and Telecommunications Group Mother Company in the third quarter of 2020.

5. The Ministry of National Defense

a) Take the lead and coordinate with the Ministry of Labor, Invalids and Social Affairs, and the Ministry of Finance to set a stable salary unit price for the Military Post and Telecommunications Group Mother Company.

b) Receive reports on the plan for labor utilization, planned salary fund, actual salary fund, wage scale, pay schedule, and salary payment regulations of the Military Post and Telecommunications Group Mother Company, as well as the annual salary unit price assignment of the Military Post and Telecommunications Group Mother Company to wholly-owned limited liability companies held by the Military Post and Telecommunications Group Mother Company for monitoring and inspection.

c) Examine and provide opinions on the salary payment regulations of the Military Post and Telecommunications Group Mother Company.

d) Regularly annually organize inspections and supervision of labor and salary management for the Military Post and Telecommunications Group in accordance with this Decree.

đ) Coordinate with the Ministry of Labor, Invalids and Social Affairs to conclude and evaluate the results of piloting labor and salary management for the Military Post and Telecommunications Group during the period from 2016 to 2020 in accordance with this Decree.

6. The Ministry of Labor, Invalids and Social Affairs

a) Coordinate with the Ministry of National Defense to set a stable salary unit price for the Mother Company, inspect and supervise the implementation of labor and salary management for the Military Post and Telecommunications Group in accordance with this Decree.

b) Take the lead and coordinate with the Ministry of National Defense, the Ministry of Finance, and the Military Post and Telecommunications Group to conclude and evaluate the results of piloting labor and salary management for the Military Post and Telecommunications Group during the period from 2016 to 2020 in accordance with this Decree, and report to the Prime Minister in the fourth quarter of 2020.

7. The Ministry of Finance

a) Coordinate with the Ministry of National Defense to set a stable salary unit price for the Military Post and Telecommunications Group Mother Company; inspect and supervise the implementation of labor and salary management for the Military Post and Telecommunications Group in accordance with this Decree.

b) Coordinate with the Ministry of Labor, Invalids and Social Affairs to conclude and evaluate the results of piloting labor and salary management for the Military Post and Telecommunications Group during the period from 2016 to 2020 in accordance with this Decree.

Article 10. Effective Date

1. This Decree shall take effect from October 10, 2016.

The provisions of this Decree shall be implemented from January 1, 2016 to December 31, 2020.

2. The Minister of Labor, Invalids and Social Affairs shall guide the implementation of this Decree.

3. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally-administered city People's Committees, Chairpersons, General Directors, Directors of the Military Post and Telecommunications Group Mother Company, wholly-owned limited liability companies held by the Military Post and Telecommunications Group Mother Company with 100% capital contribution, and representatives of the capital of the Military Post and Telecommunications Group Mother Company are responsible for implementing this Decree./.