Circular No. 37/2016/TT-BLDTBXH guiding the management of labor, wages, remuneration, and bonuses in the Vietnam Asset Management Corporation (VAMC).

CIRCULAR

Guidelines for managing labor, wages, remuneration, and bonuses in the Vietnam Asset Management Corporation

Decree No. 106/2012/NĐ-CP dated December 20, 2012, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor, Invalids, and Social Affairs;

Decree No. 53/2013/NĐ-CP dated May 18, 2013, of the Government on the establishment, organization, and operation of the Vietnam Asset Management Corporation (VAMC); Decree number 115/2015/ND-CP dated March 31, 2015 and Decree number 18/2016/NĐ-CP dated March 18, 2016 of the Government amending and supplementing certain provisions of Decree No. 53/2013/NĐ-CP dated May 18, 2013, of the Government on the establishment, organization, and operation of the Vietnam Asset Management Corporation (VAMC);

Decree No. 51/2016/NĐ-CP dated June 13, 2016, of the Government stipulating the management of labor, wages, and bonuses for employees in a limited liability company wholly owned by the State; Decree number 52/2016/NĐ-CP dated June 13, 2016, of the Government stipulating wages, remuneration, and bonuses for managers in a limited liability company wholly owned by the State;

At the proposal of the Director of the Department of Labor and Wages;

The Minister of Labor, Invalids, and Social Affairs issues this Circular to guide the management of labor, wages, remuneration, and bonuses in the Vietnam Asset Management Corporation (VAMC).

Section 1

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the management of labor, wages, remuneration, and bonuses for employees, Chairman of the Board of Members, members of the Board of Members, General Director, Deputy General Director, Chief Accountant, Head of Supervisory Board, and members of the Supervisory Board in the Vietnam Asset Management Corporation (hereinafter referred to as VAMC).

Article 2. Applicability

1. Employees work under labor contracts as prescribed by the Labor Code.

2. Chairman of the Board of Members, Board of Members members, General Director, Deputy General Director, Chief Accountant, Head of Supervisory Board, and Supervisory Board members.

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

Section 2

MANAGEMENT OF LABOR, WAGES, AND BONUSES FOR EMPLOYEES

Article 3. Labor management, planned wage fund, unit wage rate, advance payment of wages, actual wage fund, wage distribution, and bonuses

1. VAMC shall manage labor, determine the planned wage fund, unit wage rate, advance payment of wages, actual wage fund, distribution of wages and bonuses for employees according to the provisions of Section 2; Article 9, 10, 13 Section 3 and Section 4 of Circular No. 26/2016/TT-BLDTBXH dated September 1, 2016 issued by 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 wholly owned by the State (hereinafter referred to as Circular No. 26/2016/TT-BLDTBXH).

2. When determining the average planned wage level and the average actual wage level to calculate the planned wage fund and the actual wage fund as prescribed in Article 9 and Article 14 of Circular No. 26/2016/TT-BLDTBXH, VAMC shall determine the average labor productivity index and profit as follows:

a) The average labor productivity index (planned, implemented in the year or implemented in the immediately preceding year) is calculated based on the total revenue minus total costs excluding wages, where the total revenue and total costs are determined according to the provisions of Decree No. 53/2013/NĐ-CP dated May 18, 2013, Decree No. 34/2015/NĐ-CP dated March 31, 2015 of the Government, and the guidance of the Ministry of Finance on the financial regime for VAMC.

b) The profit index (planned, implemented in the year or implemented in the immediately preceding year) is replaced by the amount recovered from non-performing loans purchased with special bonds.

Article 4. Excluding objective factors when determining the planned payroll fund and the actual payroll fund for employees.

1. When determining the planned wage fund and the actual wage fund for employees, VAMC shall exclude the following objective factors affecting labor productivity and the amount recovered from non-performing loans purchased with special bonds:

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

b) The State has made a decision to intervene directly affecting the amount recovered from non-performing loans purchased with special bonds or directly affecting the purchase or sale of non-performing loans and collateral; adjust the ratio based on the amount recovered from non-performing loans purchased with special bonds by VAMC; adjust the ratio based on the remaining balance at the end of the period of non-performing loans purchased with special bonds by VAMC.

c) VAMC implements new investments for business operations (excluding investments, repairs, and upgrades of collateral assets for non-performing loans purchased by VAMC to be transformed into office premises or for lease).

2. The exclusion of objective factors as prescribed in Clause 1 of this Article shall be carried out according to the following principles:

a) Labor productivity and the amount recovered from non-performing loans purchased with special bonds affected by objective factors must be quantified and calculated using specific data.

b) Objective factors that reduce (or increase) labor productivity and the amount recovered from non-performing loans purchased with special bonds shall be added (or deducted) from the corresponding labor productivity and the amount recovered from non-performing loans purchased with special bonds in the year.

c) When determining the actual wage fund, VAMC must reassess the implementation of objective factors against the plan to exclude their impact on labor productivity and the amount recovered from non-performing loans purchased with special bonds.

Section 3

MANAGEMENT OF WAGES, REMUNERATION, AND BONUSES FOR BOARD MEMBERS, GENERAL DIRECTOR, DEPUTY GENERAL DIRECTOR, CHIEF ACCOUNTANT, AND SUPERVISORY BOARD MEMBERS

Article 5. Classification of Salaries for the Chairman of the Board of Members, Dedicated Board Members, General Manager, Deputy General Manager, Chief Accountant, Head of the Supervisory Board, and Supervisory Board Members

The Chairman of the Board of Members, specialized members of the Board of Members, General Director, Deputy General Director, Chief Accountant, Head of Supervisory Board, and members of the Supervisory Board of VAMC shall be paid according to the provisions of Circular No. 27/2016/TT-BLDTBXH dated September 1, 2016, issued by the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of the wage, remuneration, and bonus system for managers in a limited liability company wholly owned by the State (hereinafter referred to as Circular No. 27/2016/TT-BLDTBXH).

Article 6. Determination of Salary, Fee, and Bonus Funds and Payment of Salaries, Fees, and Bonuses

1. Determining the planned wage and remuneration fund; determining the actual wage and remuneration fund, bonus fund; paying wages, remuneration, and bonuses for members of the Board of Members, General Director, Deputy General Director, Chief Accountant, Head of Supervisory Board, and members of the Supervisory Board shall be carried out according to the provisions of Article 3, 9, 10, 11, 12, 14, 15, 16, 17, 18, and Article 19 of Circular No. 27/2016/TT-BLDTBXH.

2. When determining the planned payroll fund and remuneration fund as prescribed in Clause 1 of this Article, VAMC shall implement the following provisions:

a) The average labor productivity index and profit used as the basis for determining the wage and remuneration fund and the average wage level shall be implemented according to the provisions of Clause 2, Article 3 of this Circular;

b) The exclusion of objective factors affecting labor productivity and the amount recovered from bad debts purchased with special bonds shall be carried out in accordance with the provisions of Article 4 of this Circular.

Section 4

IMPLEMENTING PROVISIONS

Article 7. Implementation Organization

1. The General Director of VAMC is responsible for performing the tasks prescribed in Article 17 of Circular No. 26/2016/TT-BLDTBXH.

2. The Board of Members of VAMC shall be responsible for:

a) Perform the tasks prescribed in Article 18 of Circular No. 26/2016/TT-BLDTBXH and Article 20 of Circular No. 27/2016/TT-BLDTBXH. When submitting wage and bonus reports to the representative body of the owner, simultaneously submit them to the Ministry of Labor, Invalids, and Social Affairs for monitoring, inspection, and general supervision.

b) Determine the amount of wages and bonuses for the Chairman of the Supervisory Board and members of the Supervisory Board according to the provisions of this Circular and remit to the representative body of the owner for payment based on the level of completion of their respective tasks.

3. The Chairman of the Supervisory Board and members of the Supervisory Board are responsible for inspecting, supervising, appraising, and proposing contents related to labor management, wages, remuneration, and bonuses as stipulated for the position of Supervisor in Article 19 of Circular No. 26/2016/TT-BLDTBXH and Article 21 of Circular No. 27/2016/TT-BLDTBXH, and in accordance with the Charter on organization and operation of VAMC.

4. The agency representing the owner of VAMC (State Bank of Vietnam) shall be responsible for:

a) Perform the tasks prescribed in Article 20 of Circular No. 26/2016/TT-BLDTBXH and Article 22 of Circular No. 27/2016/TT-BLDTBXH. When submitting opinions to VAMC regarding the annual wage and bonus fund, simultaneously submit them to the Ministry of Labor, Invalids, and Social Affairs for monitoring and general supervision.

b) Receiving, reviewing, and providing comments on external factors (if any) as stipulated in this Circular, serving as the basis for VAMC to determine employee salaries and managerial salaries and fees.

c) Organize the management, evaluation, payment of wages, remuneration, bonuses, and implementation of benefits for the Chairman of the Supervisory Board and members of the Supervisory Board of VAMC as stipulated for the positions of Chairman of the Supervisory Board and Supervisor in Article 19 of Circular No. 27/2016/TT-BLDTBXH.

Article 8. Effective Date

1. This Circular takes effect from December 10, 2016. The systems prescribed in this Circular shall be applied from January 1, 2016.

2. Circular No. 31/2015/TT-BLDTBXH dated August 31, 2015, issued by the Ministry of Labor, Invalids, and Social Affairs guiding the management of labor, wages, remuneration, and bonuses in the Vietnam Asset Management Corporation ceases to be effective from the date this Circular takes effect.

3. Specialized managers shall continue to be classified according to the VAMC classification. Three years after the date this Circular takes effect, VAMC shall implement the general national classification system.

4. VAMC applies the meal allowance during working hours for employees and managers as prescribed in Clause 4, Article 22 of Circular No. 26/2016/TT-BLDTBXH and Clause 4, Article 25 of Circular No. 27/2016/TT-BLDTBXH.

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