Labour
Question 65: Under the labour law, are Employers obliged to annually adjust the salary scales applied to Employees? What is the minimum gap between two successive pay grades?
Annual adjustment to increase the salary scale applied to Employees Pursuant to the labour law[1], Employers are required to periodically review to amend and supplement wage scales and payrolls in line with: (i) actual conditions for technological innovation; (ii) production and labour organisation; (iii) salary levels in the labour market; and (iv) ensuring compliance with…
Question 64: May Employers set the ceiling and provide for the same ceiling for different jobs in the salary scale and payroll?
The labour law on salaries only stipulates the minimum wage level in the salary scale and payroll, namely the lowest salary of the job or the simplest title under normal working conditions must not be lower than the area minimum wage prescribed by the Government; and the lowest salary of a job or title requiring…
Question 63: May Employers simultaneously refer to the salary scale and table and the system of Key Performance Indicators (KPIs) to evaluate the Employees’ task completion level and the corresponding salary level?
The Key Performance Indicators (KPIs) serve as a condition for evaluating the Employees’ task completion level. In addition, there are no regulations allowing Employers to combine the salary scale and table with the KPIs to evaluate the Employees’ task completion level and to raise their salaries; also, there is not any guideline on what contents…
Question 62: Must Employers pay Employees for their overtime work if they have to work on the annual leave days specified by Employers?
As prescribed by labour law, if Employees have to work extra hours on fully-paid days off, they will be paid for overtime work with the rate of at least 300% excluding the daily wage of the fully-paid days off[1]. In addition, labour law also prescribes that Employees who have spent full 12 months working for…
Question 61: What legal issues that Employers should be aware of when issuing the salary scale and salary table, and determining the ceiling level for each position in the enterprise?
When issuing the salary scale and salary table, Employers should pay attention to the following: The salary levels of the jobs or titles with heavy, harmful, dangerous working conditions or extremely heavy, harmful, dangerous working conditions must be at least 5% or 7% higher than the salary levels of the jobs or titles with the…
Question 60: May Employers set a fixed salary without bonuses in order to pay compulsory insurance premiums for the Employees who have reached the ceiling level of salary in the salary scale and table?
The salary serving as the basis for payment of compulsory insurance premiums includes the salary, allowances and other additional amounts as prescribed by labour law[1]. Pursuant to the guiding documents, allowances and other additional amounts do not include bonuses[2]. From the analysis above, the salary serving as the basis for payment of compulsory insurance premiums…
Question 59: If a parent company abroad has a representative office and a subsidiary in Vietnam, and the same person is hired to be the head of the representative office and the director of the subsidiary at the same time, can it pay the salary 0 dong for the title of the head of the representative office during the time the procedure for closing the representative office is being conducted?
Pursuant to Decree 07/2016/NĐ-CP of the Government providing for the operations of representative offices and branches of foreign companies in Vietnam, the head of a representative office cannot be the legal representative of an economic organisation established under the law of Vietnam[1]. Therefore, if a person is currently the head of a representative office, and…
Question 58: In the period of training and re-training fire prevention and fighting skills, Employees who are members of the grassroots fire prevention and fighting team will enjoy what kinds of allowance? Will these allowances be added to the salary as a basis to pay compulsory SI premiums? If the training, re-training period falls into weekly days off, must Employers pay Employees for their overtime work?
In the period of training and re-training fire prevention and fighting skills, Employees who are members of the grassroots fire prevention and fighting team will enjoy what kinds of allowance? Will these allowances be added to the salary as a basis to pay compulsory SI premiums? As prescribed by labour law, when participating in fire…
Question 56: Is the travel time added to Employees’ annual leave?
Upon taking annual leave, if Employees spend any time travelling by long distance vehicle, that period may be considered for addition to the annual leave as agreed in the LC. Conditions for the travel time to be added The travel time will be added to Employees’ annual leave (apart from fully paid annual leave days…
Question 55: Due to the nature of the manufacturing industry, can the Employer apply intermittent working hours and ensure that Employees will not have to work more than 08 hours/day?
Pursuant to Article 34 of the Labor Code, the part-time work regime is one where Employees have less working hours than the ordinary number of working hours in a day or a week as prescribed in labour law, the collective labour agreement of the enterprise, the labour collective agreement of the industry, or the Employer’s…