Decree No. 50/2013/ND-CP on labor management, wages, and bonuses for employees working in state-owned joint stock companies with a single member.

DECREE

Regulations on labor management, wages, and bonuses for employees working in state-owned joint stock companies with a single member in a joint stock company with a single member where the State is the owner

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Labor Code dated June 18, 2012;

Pursuant to the Enterprise Law dated November 29, 2005;

Decree No. 07/2021/NĐ-CP

The Government issues this Decree to regulate labor management, wages, and bonuses for employees working in state-owned joint stock companies with a single member (hereinafter referred to as the company).

Article 1. Scope of Regulation

This Decree regulates labor management, wages, and bonuses for employees working in state-owned joint stock companies with a single member (hereinafter referred to as the company).

Article 2. Applicability

1. Laborers working under labor contracts as prescribed by the Labor Code.

2. Board of Members or Company Chairman, Supervisory Board Member, General Director or Director of the company.

3. State management agencies, agencies, organizations assigned or delegated to perform the rights and obligations of the owner towards the company (hereinafter referred to as the owner).

Article 3. Labor Management

1. The company decides on recruitment and employment of labor based on reviewing the current workforce, determining positions and job titles, ensuring effective recruitment and employment of labor, linked to the process of labor restructuring and corporate reorganization.

2. Based on production and business plans, the situation of labor utilization in the previous year, the company determines the plan for labor utilization, reports to the owner, and organizes recruitment according to the company's recruitment regulations and signs labor contracts in accordance with the law.

3. In the fourth quarter of each year, the company evaluates the implementation of the labor utilization plan to serve as a basis for building the next year's plan. In cases where recruitment exceeds the plan, leading to unemployed workers, the company must terminate their labor contracts and fully settle the employee's benefits according to labor laws and record it as part of the company's operating costs.

Article 4. Salary scale, salary table, and salary allowances

The company establishes and enacts salary scales, wage tables, and allowances according to the Government's Decree detailing the implementation of certain provisions of the Labor Code regarding wages and implements salary adjustments for employees from the salary scale and wage table issued by the Government under Decree No. 205/2004/NĐ-CP dated December 14, 2004 to the company's established salary scale and wage table.

Article 5. Determining the planned salary fund

1. Based on the production and business plan and the anticipated level of achievement of wage-related indicators as stipulated in Article 6 of this Decree, the company decides on the planned wage fund and temporarily pays wages not exceeding 80% of the actual wage fund of the immediately preceding year to pay to employees.

2. Depending on actual conditions, the company determines the unit wage rate corresponding to the planned production and business targets or units of products and services to manage the company's production and business activities.

Article 6. Determination of Actual Wage Fund

1. The actual wage fund of employees is determined based on the average number of employees actually used and the average actual wage rate.

2. The average actual wage rate for calculating the wage fund is determined based on the average actual wage rate of the immediately preceding year, labor productivity, and profit performance compared to the labor productivity and profit performance of the immediately preceding year according to the principle:

a) If labor productivity and profit performance increase in the year, then the actual wage rate increases compared to the previous year, with a 1% increase in labor productivity resulting in an additional wage increase of no more than 0.8%, and ensuring that the average wage increase (based on labor productivity and profit) is lower than the increase in labor productivity;

b) If labor productivity and profit performance decrease in the year, then the actual wage rate decreases compared to the previous year;

c) In cases where there is no profit or loss, the actual wage rate is calculated based on the average contractual wage rate (statutory wage rate).

3. When determining the average actual wage rate according to Clause 2 of this Article:

a) The company may exclude objective factors affecting profits and labor productivity, including: government intervention to stabilize the market, preferential corporate income tax, increased depreciation to recover capital quickly; the company implements products or services with state-set prices or price management, implements social welfare programs as prescribed by the Government, expands production and business operations, new investments, and actual bonus payments exceeding those of the previous year for lottery businesses;

b) For companies implementing public utility products or services ordered by the state or companies operating without profit objectives, the profit target is replaced by the volume of products or services or tasks completed;

c) The company must review the average actual wage rate for 2012 to ensure compliance with the principles stipulated in Clause 2 of this Article as a basis for determining the average actual wage rate for 2013.

4. Based on the actual wage fund according to Clause 1 of this Article and the temporarily paid wage fund for employees according to Article 5 of this Decree, the company determines the remaining wage fund to be enjoyed. If the temporarily paid and spent amount exceeds the actual wage fund, it must be repaid from the next year's wage fund.

Article 7. Distribution of Wages

1. Based on the actual wage fund, the company can establish a reserve fund to supplement the next year's wage fund and distribute wages to employees according to the company's wage distribution regulations. The company's reserve fund shall not exceed 17% of the actual wage fund. For companies engaged in seasonal production and business, the reserve fund shall not exceed 20% of the actual wage fund.

2. The company establishes a wage distribution regulation based on position and job title, ensuring fair wages (without a maximum limit) for talented individuals with professional expertise and significant contributions to the company.

3. The company shall not use the wage fund of employees to pay members of the Board of Members or the Company Chairman, Supervisory Board Member, General Director or Director, Deputy General Director or Deputy Director, Chief Accountant.

Article 8. Bonuses

1. Employee bonus funds are extracted from the company's award and welfare fund as prescribed by the Government.

2. Employee bonuses are implemented according to the company's bonus regulations.

Article 9. Implementation responsibilities

1. General Director or Director:

a) Develop a labor utilization plan to be submitted to the Board of Members or the Chairman of the company for approval, report to the owner for monitoring, inspection, and supervision, on the basis of which organize implementation and bear responsibility before the Board of Members or the Chairman of the company for recruitment and labor utilization;

b) Organize a review to determine positions, job titles, and tasks; establish salary scales, wage supplements, and salary systems based on job positions, submit to the Board of Members or the Chairman of the company for approval, and implement wage adjustments for the company's employees;

c) Determine the planned wage fund to be submitted to the Board of Members or the Chairman of the company for decision to temporarily advance and pay wages to employees;

d) Based on the degree of completion of production and business plans, determine the actual wage fund to be submitted to the Board of Members or the Chairman of the company for decision; decide on setting aside wage reserves after obtaining the opinion of the Company Trade Union Executive Committee; implement wage distribution to employees according to the company's wage regulations;

đ) Establish labor norms corresponding to the production and business plan tasks; job title standards, work standards, professional standards; wage grade promotion regulations; wage payment regulations; bonus regulations in accordance with the law, ensuring democracy, transparency, and participation of the grassroots trade union executive committee, and publicizing within the company before implementation;

e) Regularly report to the Board of Members or the Chairman of the company on labor conditions, wages, and bonuses; provide complete reports, documents, and data on labor, wages, and bonuses as required by the Inspector;

2. Board of Members or Chairman of the Company:

a) Decide on production and business plans, labor utilization plans, salary scales, wage supplements, and salary systems based on job positions, planned wage funds, and actual wage funds linked to production and business targets as stipulated in this Decree;

b) Report to the owner and simultaneously send the Inspector the plan for determining the planned wage fund and actual wage fund no later than ten days from the date of decision for inspection and supervision. For state-owned enterprise parent companies - State Economic Groups, parent companies of Special-Class State-Owned Corporations, and State-Owned Corporations performing important public service functions, simultaneously send the Ministry of Labor, Invalids, and Social Affairs for monitoring;

c) Improve the organizational structure and personnel responsible for labor and wage management in the company to implement labor, wage, and bonus management contents as prescribed in this Decree;

d) In the first quarter of each year, report to the owner on the implementation of labor, wages, and income of employees in the company in the previous year;

3. Inspector:

a) Inspect, supervise, and regularly report to the owner on the implementation by the Board of Members or the Chairman of the company, General Director or Director as prescribed in this Decree. If non-compliance is discovered, propose that the Board of Members or the Chairman of the company direct corrections or adjustments. If the proposal is not implemented, report to the owner for prompt handling;

b) Within fifteen days from receiving the report from the Board of Members or the Chairman of the company, review and verify the determination of the actual wage fund to report to the owner and bear responsibility for the accuracy and honesty of the verification report;

4. Owner:

a) Receive reports from the Board of Members or the Chairman of the company, and the Inspector regarding the actual wage fund and objective factors affecting profits (if any) for review, inspection, and supervision;

If non-compliance is discovered, within thirty days from receipt of the report, issue a written request for the Board of Members or the Chairman of the company to direct corrections, additions, or adjustments. Simultaneously, depending on the severity of the violation, decide on disciplinary measures such as withholding salary increases, extending salary grade advancement periods, reducing salary grades, deducting salaries, bonuses, and remuneration for the Chairman of the Board of Members or the Chairman of the company;

b) Regularly annually organize inspections and supervision and bear responsibility before the Government;

c) In the second quarter of each year, compile and send the Ministry of Labor, Invalids, and Social Affairs the implementation of labor, wages, and bonuses in the previous year and the construction of the wage plan and wage fund for the planning year of companies under its ownership;

5. The Ministry of Labor, Invalids, and Social Affairs:

a) Take the lead and coordinate with relevant Ministries to guide the implementation of labor, wage, and bonus management as prescribed in this Decree;

b) Guide companies to establish salary scales and wage supplements in accordance with the Government's regulations; labor norms; determine average planned wage levels and labor productivity to establish the wage fund;

c) Take the lead and coordinate with owners to select and guide some pilot companies to determine the wage fund based on positions and job titles consistent with market wage relationships;

d) Coordinate with owners to monitor wages of state-owned enterprise parent companies - State Economic Groups, parent companies of Special-Class State-Owned Corporations, and State-Owned Corporations performing important public service functions;

đ) Organize inspections and audits of the implementation of labor, wage, and bonus policies by companies. If non-compliance in determining the wage fund is found, provide opinions for owners to direct companies to adjust or settle according to regulations;

e) Compile labor, wage, and bonus situations of companies and regularly report;

Article 10. Effective Date

1. This Decree takes effect from July 1, 2013. The provisions of this Decree shall be applied from May 1, 2013.

2. This Decree replaces the following provisions:

a) Decree No. 86/2007/NĐ-CP dated May 28, 2007 of the Government on labor management and wages in limited liability companies wholly owned by the State;

b) Decree No. 141/2007/NĐ-CP dated September 5, 2007 of the Government on wage systems for state-owned parent companies and subsidiaries in economic groups.

c) Clause 6, Article 20 of Decree No. 25/2010/NĐ-CP dated March 19, 2010 of the Government on the conversion of state-owned enterprises into limited liability companies with the State as the sole shareholder and the management of limited liability companies with the State as the sole shareholder;

d) Point b, Clause 5, Article 18 of Decree No. 101/2009/NĐ-CP dated November 5, 2009 of the Government on piloting the establishment, organization, operation, and management of state-owned economic groups;

3. The Parent Company - Military Telecommunications Group shall continue to apply the provisions of Decree No. 65/2011/NĐ-CP dated July 29, 2011 of the Government on piloting the management of salaries for the Parent Company - Military Telecommunications Group during the period from 2011 to 2013 to determine the salary for 2013;

4. For General Directors or Directors, Deputy General Directors or Deputy Directors, and Chief Accountants working under labor contracts in limited liability companies with the State as the sole shareholder, salaries and bonuses shall be implemented according to the principle of agreement, separated from the wage and bonus fund for employees and recorded as business expenses of the company;

5. Organizations and units currently applying the wage system similar to that of state-owned enterprises before or limited liability companies with the State as the sole shareholder as prescribed by competent state agencies shall manage labor, wages, and bonuses for employees in accordance with the provisions of this Decree;

6. The Board of Members or Chairman of the Parent Company of the company referred to in Article 1 of this Decree shall organize the management of labor, wages, and bonuses for employees working in limited liability companies with themselves as the sole shareholders based on the content of labor management, wages, and bonuses stipulated in this Decree;

7. For organizations established and operating under the model of limited liability companies with the State as the sole shareholder as prescribed by the Securities Law, based on the provisions of this Decree, the Ministry of Labor, Invalids, and Social Affairs shall guide the management of labor, wages, and bonuses for employees in accordance with the specific nature of operations of these organizations, after reaching consensus with the Ministry of Finance;

8. Political organizations and political-social organizations shall consider and decide on the application of the provisions of this Decree for employees working in limited liability companies with themselves as the sole shareholders;

9. Agencies and organizations representing the State's shareholding interest in companies with controlling shares or capital contributions of the State shall instruct representatives of the State's capital to participate in decisions or propose to the Board of Directors or Board of Members to make decisions on managing labor, wages, and bonuses in companies with controlling shares or capital contributions of the State in accordance with actual conditions and ensuring overall State management;

10. The Minister, Head of a ministerial-level agency, Head of an agency under the Government, Chairman of the People's Committee of a province or centrally governed city, Board of Members or Chairman of limited liability companies with the State as the sole shareholder shall be responsible for implementing this Decree./.