Decree No. 74/2020/ND-CP Amending and supplementing certain articles of Decree No. 121/2016/ND-CP dated August 24, 2016 of the Government on pilot management of labor and wages for the Military Telecommunications Group during the period of 2016-2020.

DECREE

AMENDMENTS AND SUPPLEMENTS TO CERTAIN ARTICLES OF THE DECREE NO. 121/2016/ND-CP OF AUGUST 24, 2016, ISSUED BY THE GOVERNMENT ON TRIAL MANAGEMENT OF LABOR AND WAGES FOR THE MILITARY TELECOMMUNICATION GROUP DURING THE 2016-2020 PERIOD

||| Pursuant to the Law on Organization of the Government dated June 19, 2015;

Based on the Labor Code dated June 18, 2012;

Based on the Enterprise Law dated November 26, 2014;

Pursuant to the Law on Management and Use of State Capital for Investment in Business Operations dated November 26, 2014;

Decree No. 07/2021/NĐ-CP

The Government issues this Decree to amend and supplement certain articles of Decree No. 121/2016/ND-CP of August 24, 2016, issued by the Government on trial management of labor and wages for the Military Telecommunication Group during the 2016-2020 period.

Article 1. Amend and supplement certain articles of Decree No. 121/2016/ND-CP of August 24, 2016, issued by the Government on trial management of labor and wages for the Military Telecommunication Group during the 2016-2020 period (hereinafter referred to as Decree No. 121/2016/ND-CP) as follows:

1. Amend the phrase "Military Telecommunication Group" in the name of the Decree, basis for issuance, Article 1, Clause 1, 2, 3 of Article 2, Clause 2 of Article 3, Article 5, Article 6, the name of Article 7, Clause 2 of Article 8, the name, point a, b, d, đ, e, g of Clause 1, the name, point c of Clause 2, the name, point a, b of Clause 3, Clauses 4, 5, 6, 7 of Article 9, Clause 3 of Article 10 and the recipient of Decree No. 121/2016/ND-CP to "Military Industry and Telecommunication Group".

2. Supplement Clause 5 to Article 6 as follows:

“5. In 2020, when implementing the expansion of production and business activities, implementing the restructuring plan of the Military Industry and Telecommunication Group according to the decision of the Prime Minister, if a limited liability company with 100% state capital held by the Parent Company - Military Industry and Telecommunication Group must take on new production and business tasks from the Parent Company - Military Industry and Telecommunication Group or accept the merger of another limited liability company with 100% state capital held by the Parent Company - Military Industry and Telecommunication Group, then within the time from accepting new production and business tasks or accepting the merger until the end of 2020, the wage fund for employees performing these newly accepted production and business tasks or mergers shall be determined based on the actual average number of employees used and the maximum wage level equal to the average wage of employees who have performed these production and business tasks at the transferring company or the merged company in the year immediately preceding the transfer or merger, ensuring the following conditions: completing well the defense and security tasks assigned by the Party and State; paying taxes according to the law and achieving profits.”

3. Amending and supplementing Article 7 as follows:

“Article 7. Wage management for subsidiaries and companies held over 50% of charter capital by the Parent Company - Military Industry and Telecommunication Group

1. The representative of the Parent Company - Military Industry and Telecommunication Group's share capital shall base on the principles stipulated in Clause 1, 2, 3, and 4 of Article 6 of this Decree to decide or participate in the Board of Members or the Board of Directors, General Shareholders' Meeting to decide: stabilizing the unit price of wages; the wage of enterprise managers included in the unit price of wages and the actual wage fund of the company; determining the annual actual wage fund linked to labor productivity and business efficiency of subsidiaries and companies during the 2016-2020 period.

2. During the 2016-2020 period, when implementing the expansion of production and business activities, implementing the restructuring plan of the Military Industry and Telecommunication Group according to the Decision of the Prime Minister, subsidiaries and companies held over 50% of charter capital by the Parent Company - Military Industry and Telecommunication Group must take on new production and business tasks from the Parent Company - Military Industry and Telecommunication Group, then the representative of the Parent Company - Military Industry and Telecommunication Group's share capital shall decide or participate in the Board of Members or the Board of Directors, General Shareholders' Meeting to decide on the determination of the actual wage fund for employees performing these new production and business tasks as follows:

a) Within the time from taking on new production and business tasks to the end of the fiscal year immediately following the acceptance year, the actual wage fund shall be determined based on the actual average number of employees used and the maximum wage level equal to the average wage of employees performing these production and business tasks at the Parent Company - Military Industry and Telecommunication Group in the year immediately preceding the transfer, ensuring the following conditions: completing well the defense and security tasks assigned by the Party and State; paying taxes according to the law and achieving profits.

b) After the time specified in point a of this Clause, the annual actual wage fund shall be determined based on the average number of employees and the average wage level calculated according to the labor productivity and profit indicators compared to the previous year, in accordance with the principles stipulated in Clause 3, Clause 4 of Article 6 of this Decree.

3. For new companies established in 2020 that are held over 50% of charter capital by the Parent Company - Military Industry and Telecommunication Group, the representative of the Parent Company - Military Industry and Telecommunication Group's share capital shall decide or participate in the Board of Members or the Board of Directors, General Shareholders' Meeting to determine the actual wage fund based on the average number of employees and the average wage level ensuring a general parity with the 2020 wage level of employees at other companies held over 50% of charter capital by the Parent Company - Military Industry and Telecommunication Group and report to the Parent Company - Military Industry and Telecommunication Group for comments before implementation.”

Article 2. Effectiveness and responsibility for implementation

1. This Decree takes effect from August 15, 2020 until December 31, 2020.

2. The determination of the actual wage fund for employees performing new production and business tasks that have been newly assigned or merged in accordance with Clause 2 and Clause 3 of Article 1 of this Decree shall be calculated from the date of receiving such new production and business tasks or the date of merging within the period of 2016-2020 at a limited liability company wholly owned by the Joint Stock Company - Military Industry and Telecommunications Group, at a corporation, or at a company where the Joint Stock Company - Military Industry and Telecommunications Group holds more than 50% of the charter capital.

3. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial and centrally-run city People's Committees, Chairpersons and General Directors of the Joint Stock Company - Military Industry and Telecommunications Group, limited liability companies wholly owned by the Joint Stock Company - Military Industry and Telecommunications Group, and representatives of the capital of the Joint Stock Company - Military Industry and Telecommunications Group are responsible for implementing this Decree./.