Principles for Establishing Labor Norms according to Decree 121/2018/ND-CP

Enterprises shall establish labor norms as a basis for paying wages to employees on a product basis, ensuring the following principles:

1. Labor norms shall be implemented for each step of work, each stage, and the entire production process of products and services based on scientific labor organization and rational production organization.

2. The labor norm shall be established based on the grade of the job or title, suitable for the grade and training level of the employee, the technological process, technical standards of machinery and equipment, and ensure labor standards.

3. The labor norm must be an average advanced level, ensuring that the majority of employees can perform it without having to extend the standard working hours of the enterprise as prescribed by law.

4. New labor norms must be tested before official promulgation. Enterprises must notify employees at least 15 days before trial application. The trial period depends on the nature of the work but shall not exceed 3 months and must evaluate the implementation of the level.

In case during the standard working hours, the actual performance measured by output is less than 5% below or more than 10% above the assigned level, or the actual performance measured by time is more than 5% above or less than 10% below the assigned level, the enterprise must adjust the labor norm.

5. Labor norms must be periodically reviewed and evaluated for amendments, supplements, and adjustments. When establishing or amending, supplementing, and adjusting labor norms, enterprises must consult with the representative organization of the collective of employees at the enterprise and publicly announce it at the workplace before implementation, and simultaneously send it to the district-level state labor management agency where the enterprise's production facility is located.

Additionally, Decree 121/2018/ND-CP also supplements regulations at the end of Point a, Clause 2, Article 10, Chapter IV of Decree 49/2013/ND-CP, whereby enterprises employing fewer than 10 laborers are exempt from the procedure of submitting salary scales, payrolls, and labor norms to the district-level state labor management agency where the enterprise's production, business facility is located.

See more: Decree 121/2018/ND-CP, effective from November 1, 2018.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE