Chương I Nghị định 20/2020/NĐ-CP: Quy định chung

Chapter I

GENERAL PROVISIONS

Article 1. Scope 

This Decree deals with the pilot management of labor, design of pay scale and payroll, salary and bonuses of employees and General Directors, Deputy General Directors and Chief Accountants, and salary, remuneration and bonuses of members of Boards of Members, members of Management Boards, heads of Control Boards and comptrollers in 2020 of the following economic groups and corporations:

1. Parent company - Vietnam Posts and Telecommunications Group (VNPT).

2. Parent company - Vietnam Airlines JSC (Vietnam Airlines).

3. Parent company – Viet Nam Air Traffic Management Corporation (VATM).

These parent companies are hereinafter referred to as “company” or “companies”.

Article 2. Regulated entities

1. The employees as defined in the Labour Code.

2. General Directors, Deputy General Directors and Chief Accountants.

3. Members of Boards of Members, members of Management Boards, heads of Control Boards and comptrollers.

4. Representatives of state capital invested in companies, the owner’s direct representatives and the owner’s representative agencies as defined in the Law on management and utilization of state capital invested in the enterprises’ manufacturing and business operations.

5. Other regulatory authorities, institutional and individual entities involved in the implementation of this Decree.

Article 3. Labor, salary and bonus management rules

1. Companies shall introduce their own policies on recruitment and use of labor, salary and bonus in accordance with applicable laws and the company’s Charter.

2. Salaries and bonuses awarded to employees, General Directors, Deputy General Directors, Chief Accountants, members of Boards of Members, members of Management Boards, heads of Control Boards and comptrollers shall be associated with the productivity, business or production effectiveness of companies.

3. Labor, salary, remuneration and bonuses in wholly state-owned companies shall be managed by the Government according to regulations on assignment of tasks and responsibilities to the owner’s representative agencies and direct representatives in companies; with regard to joint-stock companies, the owner’s representative agencies shall, pursuant to this Decree, direct the representatives of state capital invested in such companies to attend and vote on these matters at meetings of the Management Boards or General Meetings of Shareholders.

Article 4. Elimination of objective factors

Companies shall exclude objective factors (if any) which may directly cause increase or decrease in the labor productivity, profits and return on equity when determining salary and bonus in accordance with this Decree, including:   

1. The Government shall adjust the pricing of products and services of which the price or price bracket is set out by the Government, revise corporate income tax incentives, amend mechanisms/policies or request companies to relocate or shrink their business premises, make accelerated depreciations for quick capital recovery, increase or decrease the charter capital or state capital invested in companies.

2. Companies undertake social security tasks, maintain market stabilization, balances of economic supply and demand according to the Prime Minister’s decisions, expand their business and production, invest in and develop new products and services, implement regulations of competent authorities, conventions, treaties or recommendations which are adopted by international organizations and to which Vietnam is a signatory.

3. Basic production inputs of companies are adversely affected by the market; natural disasters, conflagration, epidemics, war and other force majeure events.