Can enterprises change pay scales for employees themselves without the consent of the trade union in Vietnam?
- Can enterprises change pay scales for employees themselves without the consent of the trade union in Vietnam?
- What are the current salary payment rules in Vietnam? Can an employee authorize another person to receive salary?
- When the enterprise changes the new pay scale, do employees have the right to comment on the content?
Can enterprises change pay scales for employees themselves without the consent of the trade union in Vietnam?
Pursuant to the 2019 Labor Code of Vietnam promulgated by the National Assembly on November 20, 2019.
In Article 93 of the 2019 Labor Code of Vietnam on the establishment of pay scale for employees as follows:
Establishment of pay scales, payrolls and labor productivity norms
1. Every employer shall establish their worn pay scale, payroll and labor productivity norms as the basis for recruitment and use of labor, negotiation and payment of salaries.
2. The labor rate shall be an average value that is achievable to most employees without having to extend their normal working hours, and must be experimented before officially introduced.
3. The employer shall consult with the representative organization of employees (if any) during establishment of pay scales, payroll and labor productivity norms.
Pay scales, payroll and labor productivity norms shall be publicly posted at the workplace before they are implemented.
Thus, according to Clause 3, Article 93 of the 2019 Labor Code of Vietnam cited above, it can be seen that, when establishing pay scales for employees, if there is a representative organization of employees (trade union), the enterprise must carry out the consultation.
Therefore, according to current regulations, enterprises cannot change pay scales for employees themselves without consulting the trade union.
Can enterprises change pay scales for employees themselves without the consent of the trade union in Vietnam?
What are the current salary payment rules in Vietnam? Can an employee authorize another person to receive salary?
Currently, the salary payment rules to employees is implemented according to the provisions of Article 94 of the 2019 Labor Code of Vietnam as follows:
Salary payment rules in Vietnam
1. Employers shall directly, fully and punctually pay salaries to their employees. In the cases where an employee is not able to directly receive his/her salary, the employer may pay it through a person legally authorized by the employee.
2. Employers must not restrict or interfere with their employees’ spending of their salaries; must not force their employees to spend their salaries on goods or services of the employers or any particular providers decided by the employers.
Thus, pursuant to the above-mentioned rules, in the cases where an employee is not able to directly receive his/her salary, the employer may pay it through a person legally authorized by the employee.
When the enterprise changes the new pay scale, do employees have the right to comment on the content?
Pursuant to the provisions of Article 44 of Decree No. 145/2020/ND-CP on the contents that employees are entitled to comment as follows:
Methods of commenting and topics on which employees may comment
1. Employees may comment on the following topics:
a) Formulation of and revisions to rules and regulations and other regulatory documents of the employer relevant to employees’ rights, duties and interests;
b) Formulation of and revisions to pay scales, payroll, productivity norms; proposed collective bargaining contents;
c) Proposals, implementation of solutions for saving costs, improving productivity, work conditions, environmental safety, fire safety;
d) Other contents relevant to the employees’ rights, duties and interests;
2. Employees shall make comments on the topics mentioned in Clause 1 in accordance with the methods prescribed by law. If commenting methods are not prescribed by law, employees may choose one of the following methods according to business conditions and internal workplace democracy regulations:
a) Making comments directly or through the internal employee representative organization or representative group during the employee conference or dialogue in the workplace;
b) Directly sending comments or proposals;
c) Other methods that are not banned by law.
Thus, according to Point b, Clause 1, Article 44 of Decree No. 145/2020/ND-CP mentioned above, pay scale is one of the contents that employees are allowed to comment on to build, amend and supplement.
Thus, employees can comment on the change of pay scales in the following methods:
- Making comments directly or through the internal employee representative organization or representative group during the employee conference or dialogue in the workplace;
- Directly sending comments or proposals;
- Other methods that are not banned by law.
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