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GOVERNMENT
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SOCIALIST
REPUBLIC OF VIETNAM Independence
- Freedom – Happiness
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No.
206/2004/ND-CP
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Hanoi,
December 14 2004
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GOVERNMENT DECREE
ON
LABOR, SALARY AND INCOME MANAGEMENT IN STATE-OWNED COMPANIES
GOVERNMENT
Pursuant to the Law on
Organization of Government dated December 25, 2001
Pursuant to the Labor code dated June 23, 1994; the Law on amendment and
supplement of a number of articles in Labor code dated April 02, 2002
Pursuant to the Law on State-owned enterprises dated November 26, 2003
At the proposal by the Minister of Ministry of Labor, War Invalids and
Social Affairs
DECREES
Article 1. Scope of
application of regulations on labor, salary and income management in this
decree shall include:
1. State-owned companies:
- State owned general
corporations;
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2. Financially independent
member the company under the general corporation that was established and
invested by the State.
The afore-mentioned corporations
and the company shall hereinafter be referred to as the company.
Article 2. Objects of
application shall include labors who work on contractual basis as
stipulated in the Labor Code and Deputy General directors, deputy directors,
Chief accountants (exclusive of Deputy General directors, deputy directors,
Chief accountants who work on contractual basis)
Article 3. Labor
management
1. On the basis of the company’s
annual workload, quality, requirements as entailed by its annual business and
production plan, the company shall make plan of labor use and register the plan
with the ownership representative before implementing it.
2. On the basis of the
registered plan of labor use, the company shall directly conduct recruitment in
accordance with the company’s internal recruitment regulations and sign labor
contracts as required by Labor Code;
3. Each year it is
responsibility of the company to evaluate the plan of labor use and to provide
welfare for redundant employees in accordance with the Labor Code.
Article 4. The company shall
use the coefficient of at most twice as much as the general minimum salary
level as stipulated by the Government as the basis to salary determination.
Once this coefficient is to be employed, the company must meet the following
requirements:
1. To make financial
contribution to the state budget as required by the Law
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3. Planned profit must be not
lower than the realized profit in the previous year except special cases as
provided for the Government regulations.
Article 5. The
determination of salary units and salary management by the company must be in
accordance with the following regulations:
1. Salary unit must be
determined on the basis of advanced labor norms and of salary parameters that
are in accordance with conditions defined in article 4 of this decree.
2. Salary unit must be
registered with the ownership representative before being applied.
Salary unit for the company a
special type and in the company operating for public interest that play
an important role in national economy will be appraised by Ministry of Labor,
War Invalids and Social Affairs, Ministry of Finance for reporting to the Prime
Minister.
3. Salary fund to be used shall
be determined according to degree of accomplishment of the production,
business, productivity targets and realized profit and salary will be
paid to labors in accordance with the company’s’ internal regulations.
Article 6. Bonus
1. Bonus from the company’s bonus
fond shall be determined in accordance with the provisions in Decree No
199/2004/ND-CP dated 3 December 2004 by the Government promulgating the
regulations on financial management in State-owned companies and on the
management of the State-owned capital invested in other enterprises
2. Bonus for laborers shall be
granted in accordance with the company’s regulations on bonus
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1. Making a plan of profit; plan
of using laborers; salary unit and registering with the ownership
representative in the first quarter each year and sending local taxation office
the company’s salary unit as the basis to for tax purposes;
2. Determining the company’s
salary fund and bonus fond to be used;
3. Establishing labor norms;
criteria and standards for technical workers; professional criteria and
standards for the company’s staff and employees; norms for salary increment;
norms for salary payment, norms for bonus payment in accordance with the
provisions by the law in such a way that can be ensure democracy, equality,
transparency and can encourage talented people, people with advanced
professional and technical skill, high productivity to make greater
contributions to the company.
4. Strengthening organizational
structure and ensuring of sufficient number of qualified officers responsible
for labor and salary affairs in the company as required by the ownership
representative;
5. Reporting on business
results, profits, labor, salary, bonus of the previous year to the
representative of the Ownership representative and provincial department of
Labor, War Invalids and Social Affairs in their province in first quarter of
the planned year.
Article 8. The ownership
representative shall have the following responsibility
1. Board of directors:
a) approving the profit plan;
plan on using labor force; labor norms; salary unit; criteria and standards for
technical levels of workers; professional standards of the company’s
employees and staff; regulations on salary increment, salary category
promotion; salary budget, bonus fund, the company’s regulations on bonus
and salary payment;
b) Directing, monitoring and
supervising the implementation of this decree;
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d) Deciding on the company’s
organizational structure and number of civil workers responsible for labor and
salary affairs in the company;
e) Reporting on the result of
production, business and profits, the use of labor force, salary, bonus of the
previous year to Ministry of Labor, War Invalids and Social Affairs or the line
ministry, People’s committees in provinces and cities under central government
in the first quarter of the planned year
2. Line ministries, People’s
committee in provinces and cities under the central government
a) Receiving the registered
profit plan, plan on labor use; salary unit, regulation on salary payment,
bonus and reports on the results of production, business, profits, use of labor
force, bonus and salary payment in the year before the planned year sent by the
companies under its authority
b) Directing, inspecting and
supervising the implementation of regulations in this decree
c) Co-operating with Ministry of
Labor, War Invalids and Social Affairs and Ministry of Finance to appraise the
salary unit applied for the company of special type and the company operating
for public interest with an important role in the national economy
d) Reporting the result in
production, business, profits, labor force, salary, bonus of the year before
the planned year to leaders of Ministry of Labor, War Invalids and Social
Affairs in the first quarter of the planned year
Article 9. Ministry of
Labor, War Invalids and Social Affairs shall be responsible for:
1. providing guidelines
for developing labor norms; criteria and standards on technical levels of
workers; professional and specialist criteria and standards for employees and
staff; productivity; average salary level; salary units and regulations on
salary payment, regulations on bonus in companies;
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Article 10. This Decree
shall take effect in 15 days after it has been published in the Official
Gazette and supersede the Government Decree 28/CP dated 28 March 1997 and the
Government Decree 03/2001/ND-CP dated 11 January 2001 on reforms in salary and
income management in State-owned enterprises.
The provision in the Decree
shall be applied as of 01 January 2005.
Article 11. Ministers,
heads of Ministerial equivalents, Heads of agencies directly under the
government and Presidents of People’s Committees in Provinces and cities under
central government shall be responsible for implementing this Decree./.
Cc:
- Secretariat of Vietnam Communist
Party's Central Committee
- Prime Minister, Deputy Prime Ministers
- Ministries, ministerial equivalents, Government agencies
- People's Councils, People's Committees in provinces and cities directly
under the Government
- Office of National Assembly
- National Assembly’s Council on Ethnic Groups and other Committees
- Presidential Office
- Vietnam Communist Party's Central Committee Office and other
Committees
- Supreme People's Court
- Supreme People's Procuracy
- Central agencies of organizations
- National Academy of Public Administration
- Official Gazette
- Office of Government: functional offices and commissions Spokesman for the
Prime Minister, Divisions, Departments and affiliate units
- Filing: VX (5), Archives
ON
BEHALF OF THE GOVERNMENT
PRIME MINISTER
Phan Van Khai