Does the enterprise in Vietnam have to establish a salary scale and salary table?

Before recruiting employees, agreeing on salary levels in labor contracts and paying salaries, wages to employees, do employers in enterprises (FDI companies) need to create salary scale, salary table and labor norms? Does it breach the law if an FDI company fails to create the salary scale and salary table?

Establish salary scale, salary table and labor norms:

Employers are required to develop a salary scale, salary table and labor norms as the basis for recruiting, employing, agreeing on salary levels with employees according to the job or title stated in the labor contract and paying salaries, wages to employees.

The labor norm 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 are required to consult with the employee’s representative organization at the grassroots level for the place where the representative organization is located when developing the salary scale, salary table and labor norms.

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

Hold a dialogue when there is a case:

For the case in which the employer must consult and exchange opinions with the employee’s representative organization at the grassroots level on the salary scale, wage table and labor norms as prescribed in Article 93 of the Labor Code No. 45/2019/QH14 dated November 20, 2019 (Clause 1, Article 41 of Decree No. 145/2020/ND-CP dated December 14, 2020).

Contents and forms that employers must disclose:

The employer must disclose to the employee the contents of the labor regulations, salary scale, salary table, labor norms, internal rules, regulations and other regulations of the employer related to the rights, obligations and responsibilities of employees (Point b, Clause 1, Article 43 of Decree No. 145/2020/ND-CP dated December 14, 2020).

In case an FDI company fails to develop the salary scale and salary table, it is a breach of the regulations on salary at Points a, d, dd and e, Clause 1, Article 16 of Decree No. 28/2020/ND-CP dated March 01, 2020.

In conclusion, before recruiting, employing and agreeing on the salary level in the labor contract and paying wages to employees, the employer in an FDI company must establish the salary scale, salary table and labor norms, consult with the employee’s representative organization at the grassroots level, and make public announcement at the workplace before implementation./.

Does a company in Vietnam have to make a salary scale and salary table ?