Circular No. 18/2008/TT-BLDTBXH amending and supplementing Circular No. 12/2003/TT-BLDTBXH dated May 30, 2003 of the Ministry of Labor - Invalids and Social Affairs guiding the implementation of certain provisions of Government Decree No. 114/2002/NĐ-CP dated December 31, 2002 on wages.

CIRCULAR

Amending and supplementing Circular No. 12/2003/TT-BLDTBXH dated May 30, 2003 of the Ministry of Labor, Invalids and Social Affairs guiding the implementation of certain provisions of Decree No. 114/2002/NĐ-CP dated December 31, 2002 of the Government on wages.

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Implementing Decree No. 114/2002/NĐ-CP dated December 31, 2002 of the Government detailing and guiding the implementation of certain provisions of the Labor Code on wages, the Ministry of Labor, Invalids and Social Affairs issued Circular No. 12/2003/TT-BLDTBXH dated May 30, 2003 guiding the implementation of certain provisions of Decree No. 114/2002/NĐ-CP dated December 31, 2002 of the Government on wages for workers employed in state-owned enterprises (hereinafter referred to as Circular No. 12/2003/TT-BLDTBXH).

Pursuant to Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government stipulating the wage scale, salary table, and allowances in state companies; Decree No. 86/2007/NĐ-CP dated May 28, 2007 of the Government stipulating labor management and wages in limited liability companies wholly owned by the State; Decree No. 141/2007/NĐ-CP dated September 5, 2007 of the Government stipulating wage systems for companies under State ownership and subsidiaries within economic groups; to ensure that companies comply with labor laws and protect the rights of workers, after exchanging opinions with relevant ministries and sectors, the Ministry of Labor, Invalids and Social Affairs guides the amendment and supplementation of Circular No. 12/2003/TT-BLDTBXH as follows:

1. Amend Section I of Circular No. 12/2003/TT-BLDTBXH as follows:

"I. Scope of regulation and applicable subjects

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a) State-owned companies established, managed, and operated according to the Law on State-Owned Enterprises, including:

- State-owned corporation;

- Independent state-owned company;

- Parent company in an economic group established by the Prime Minister's decision or approved project establishment and assigned to the Minister, Head of a ministry equivalent to a minister, Head of a government agency, Chairman of the People's Committee of provinces and centrally governed cities to decide on establishment;

- Parent company in a holding company or company operating under the parent-subsidiary model;

- Holding company, independent subsidiary with 100% state capital belonging to an economic group during the period before conversion and re-registration according to Decree No. 139/2007/NĐ-CP dated September 5, 2007 of the Government detailing the implementation of certain provisions of the Enterprise Law;

- Independent subsidiary with 100% state capital belonging to a holding company decided by the State to invest and establish.

b) Limited liability companies wholly owned by the State established, managed, and operated according to the Enterprise Law.

c) Vietnam Deposit Insurance Corporation, Vietnam Development Bank, Project Management Board for Investment and Construction, and other State organizations currently applying wage systems similar to those of state-owned companies.

The above-mentioned companies and organizations are collectively referred to as companies.

Thông tư này áp dụng đối với tổ chức, cá nhân có liên quan đến hoạt động kinh doanh đối tượng thủy sản nuôi chủ lực trên lãnh thổ Việt Nam.

a) Workers employed under labor contracts stipulated in Decree No. 44/2003/NĐ-CP dated May 9, 2003 of the Government detailing and guiding the implementation of certain provisions of the Labor Code on labor contracts.

b) Members of the Board of Directors, members of the Supervisory Board, members of the Board of Members (or Company Chairperson), members of the Management Board, General Director, Director, Deputy General Director, Deputy Director, and Chief Accountant (excluding General Director, Director, Deputy General Director, Deputy Director, and Chief Accountant working under contracts)."

2. Amend Clause 1, Clause 2 of Section II of Circular No. 12/2003/TT-BLDTBXH as follows:

"II. Minimum Wage

The minimum wage level as stipulated in Article 4 of Decree No. 114/2002/NĐ-CP is specified as follows:

According to Article 4 of Decree No. 114/2002/NĐ-CP, companies continue to apply the minimum wage levels prescribed in Decree No. 166/2007/NĐ-CP dated November 16, 2007 of the Government stipulating the general minimum wage and Decree No. 167/2007/NĐ-CP dated November 16, 2007 of the Government stipulating regional minimum wage levels for workers employed in companies, enterprises, cooperatives, production cooperatives, farms, households, individuals, and other organizations in Vietnam that hire labor, and circulars guiding their implementation until new regulations are issued."

3. Amend Section III of Circular No. 12/2003/TT-BLDTBXH as follows:

"III. Wage Scale, Salary Table, and Allowances

The wage scale, salary table as stipulated in Clause 4, Article 5 of Decree No. 114/2002/NĐ-CP is specified as follows:

According to Clause 4, Article 5 of Decree No. 114/2002/NĐ-CP, companies continue to apply the wage scales, salary tables, and allowance systems prescribed in Decree No. 204/2004/NĐ-CP, Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government on wage systems for cadres, civil servants, public officials, and armed forces personnel, stipulating the wage scale system, salary table, and allowance system in state companies, and circulars guiding their implementation until new regulations are issued."

4. Amend Clause 1 of Section VI of Circular No. 12/2003/TT-BLDTBXH as follows:

"VI. Promotion System

1. Promotion System

The promotion system as stipulated in Clause 2, Article 6 of Decree No. 114/2002/NĐ-CP shall be implemented as follows:

a) Annually, based on job requirements, production and business conditions, after consulting the opinion of the grassroots trade union committee or provisional trade union committee, the company establishes a plan and organizes promotions for workers employed in the company;

b) Criteria for promotion for direct production and business workers are technical grade standards corresponding to the job they undertake; for professional staff, administrative staff, and service staff, it is professional and vocational standards for staff and years of service in the company;

c) Conditions for annual promotion review are as follows:

- Must consistently complete tasks assigned in terms of quantity and quality as recorded in the signed labor contract;

- Not during the period of being subject to disciplinary action under the Labor Code and the company's internal labor regulations;

- For professional and technical staff, administrative and service personnel who have held their current salary grade at the enterprise for at least two years (twenty-four months) for job categories with an initial salary coefficient (grade 1) lower than 2.34; at least three years (thirty-six months) for job categories with an initial salary coefficient (grade 1) of 2.34 or higher as stipulated in Decree No. 205/2004/NĐ-CP.

For production and business workers directly involved who achieve results in the promotion examination according to the technical rank standards corresponding to the work they undertake, if they pass the examination at a certain rank, they will be assigned a salary according to that rank.

d) Cases eligible for early promotion and shortened promotion period:

During the time holding the rank specified in point c above, employees who win awards in national or international specialized and technical competitions organized by the company; those who are honored with titles such as Hero of Labor, Labor Medal, National Model Worker, or industry/sector model worker, and commendations from the Prime Minister or the relevant ministry shall be considered for early promotion as follows:

- Those who win first or second place in international competitions shall be promoted two grades earlier.

- Those who win first place in national competitions, third place in international competitions, or are conferred the title of Hero of Labor, Labor Medals of Class I, II, III, or National Model Worker as prescribed in Decree No. 121/2005/NĐ-CP dated September 30, 2005 of the Government detailing and guiding the implementation of certain provisions of the Law on Encouragement and Reward and the Law Amending and Supplementing Certain Provisions of the Law on Encouragement and Reward shall be promoted one grade earlier;

- Those who win second place in national competitions shall have their promotion period shortened by two-thirds;

- Those who win third place in national competitions or are awarded commendations by the Prime Minister shall have their promotion period shortened by no more than half;

- Those who are awarded commendations by the Ministry for two consecutive years, or recognized as industry/sector model workers, shall have their promotion period shortened by one year (twelve months);

The effective date of the new salary grade for those who are promoted early and whose promotion period is shortened shall be implemented as follows:

- Those who are promoted one grade or more earlier shall enjoy the new salary grade from the date of the decision and retain the time spent at the previous salary grade for calculating the next promotion period;

- Those whose promotion period is shortened shall enjoy the new salary grade from the date of the decision on early promotion, and the next promotion period shall start from the date of the decision on enjoying the new salary grade.

đ) Cases where the promotion period is extended:

During the time holding the salary grade, if an employee is disciplined under point b, Clause 1, Article 84 of the Labor Code, the promotion period may be extended by no more than six months.

e) The company must establish a Promotion Board to organize promotions according to the plan. The board consists of the General Director of the company, some members selected by the General Director, and representatives of the Trade Union Committee or the Temporary Trade Union Committee.

The Promotion Board is responsible for announcing the promotion plan; organizing promotion examinations for production and business workers; and annually reviewing the promotion of professional and technical staff, administrative and service personnel.

g) The promotion system for employees must be reflected in the labor contract and collective labor agreement.

5. Add a new Clause 2 to Section VI of Circular No. 12/2003/TT-BLDTBXH on the promotion system for members of the Management Board, General Director, Director, Deputy General Director, Deputy Director, and Chief Accountant as follows:

The promotion of full-time members of the Management Board, full-time members of the Board of Members (or Chairman of the Company), full-time members of the Management Council, General Director, Director, Deputy General Director, Deputy Director, and Chief Accountant in state-owned enterprises and wholly state-owned limited liability companies shall be based on the following conditions and criteria for promotion:

- Having held Grade 1 for three years or more;

- Completing the annual production and business plan;

- Not violating the responsibility regime as prescribed by labor laws;

- Not being in a disciplinary period.

In cases where management staff achieve achievements as stipulated in Clause 4 above, they may also be eligible for early promotion or shortened promotion periods; if they are subject to a reprimand or warning or higher disciplinary action, the promotion period will be extended by twelve months compared to the prescribed period.

6. Implementation organization.

a) This Circular takes effect fifteen days after its publication in the Official Gazette.

b) Repeal Clause 2, Section VI of Circular No. 12/2003/TT-BLDTBXH dated May 30, 2003 of the Ministry of Labor, Invalids and Social Affairs guiding the implementation of Decree No. 114/2002/NĐ-CP dated December 31, 2002 of the Government on salaries for employees working in state-owned enterprises.

c) State-owned companies that have converted to joint-stock companies with two or more shareholders or public companies operating under the Enterprise Law, if they continue to implement the wage scale, pay table, and wage allowance system prescribed by the Government, may apply the provisions of this Circular.

Any difficulties encountered during implementation should be reported to the Ministry of Labor, Invalids and Social Affairs for consideration and resolution./.