Do enterprises have to register salary range and salary structure ?

Are FDI enterprises, FDI companies employing less than 10 employees required to organize the development of salary scales, wage tables and labor norms, and carry out the procedures for sending and registering with the state management agencies in charge of labor in the localities where the enterprises or FDI companies registering their business activities? In case enterprises, FDI companies fail to create a salary range, salary structure and labor norms ?

DMS Lawyers in Danang, Vietnam advise about how does an enterprise have to send its salary range and salary structure to the state management agency in charge of labor ?

Establish the salary range, salary structure and the labor norms:

- For period from May 01, 2013 to January 01, 2021:

When formulating the wage range, salary structure, and labor norms, the employer must consult the representative organization of the collective labor at the grassroots level and publicly announce it at the workplace of the employee before implementing it. Concurrently, send it to State management agency in charge of labor at the district level where the employer's production and business establishments are located (Clause 2, Article 93 of the Labor Code No. 10/2012/QH13 dated June 18, 2012).

- From 01/01/2021 until now:

Employers must develop a salary range, salary structure and labor norms as the basis for recruiting, employing, agreeing on salary levels according to the job or title stated in the labor contract and paying salaries, wages to employees

The labor level must be the average level that ensures the majority of employees can do it without prolonging the normal working hours and must be tested before it is officially issued.

The employer must consult with the employee’s representative organization at the grassroots level for the place where the representative organization is located when developing the salary range, salary structure and labor norms.

The salary range, salary structure and labor norms must be publicly announced at the workplace before implementation (Article 93 of the Labor Code No. 45/2019/QH14 dated November 20, 2019).

Register the salary range, salary structure and the labor norms:

- For the period from July 01, 2013 to November 01, 2018:

The enterprise shall organize the formulation or review, amend and supplement the salary range, salary structure, and the labor norms and send it to the district-level State management agency in charge of labor where the enterprise's production and business establishment is located for monitoring, inspecting purposes according to the provisions of this Decree (Point a, Clause 2, Article 10 of Decree No. 49/2013/ND-CP dated May 14, 2013).

- For the period from November 01, 2018 to February 01, 2021:

Enterprises employing less than 10 employees are exempted from the procedure of sending salary range, salary structure, and labor norms to the district-level State management agency in charge of labor where the enterprise's production and business establishments are located ( Clause 2, Article 1 of Decree No. 121/2018/ND-CP dated September 13, 2018).

- From February 01, 2021 until now:

Enterprises and FDI companies must develop a salary range, salary structure and labor norms, consult with the employees’ representative organization at the grassroots level, and publicly announce it at the workplace before implementation in accordance with the regulations specified in Clause 1, Article 41, Point b, Clause 1, Article 43, Point b, Clause 1, Article 44 of Decree No. 145/2020/ND-CP dated December 14, 2020.

In summary, at the present time, FDI enterprises, FDI companies employing less than 10 employees still have to establish a salary range, salary structure and labor norms, but do not have to carry out the procedures for sending, registering with the state management agency in charge of labor. If an enterprise or FDI company fails to create a salary range, salary structure, it breaches the regulations on salaries, wages at Points a, d, dd and e, Clause 1, Article 16 of Decree No. 28/2020/ND-CP March 1, 2020./.

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DMS LAW LLC
Director
(Signed)
Lawyer Do Minh Son