Draft Decree detailing the implementation of several provisions of the Labor Code regarding labor management, labor contracts, wages, labor discipline, and material responsibility is currently being solicited for public comment online, expected to take effect from January 01, 2021.
Article table of contents
Detailed Regulations on Payment Forms for Employees
One noteworthy aspect of this Draft is the detailed regulations on payment forms for employees according to Article 96 of the 2019 Labor Code. To be specific:
- Based on the nature of the work and production and business conditions, the employer and the employee shall agree in the labor contract on the form of payment by time, by product, or by contract as follows:
- Salary by time is paid to employees based on the working time agreed upon in the labor contract, specifically:
+ Monthly salary is paid for a month of work;+ Weekly salary is paid for a week of work. If the labor contract agrees on a monthly salary, the weekly salary is determined by multiplying the monthly salary by 12 months and dividing by 52 weeks;+ Daily salary is paid for a day of work. If the labor contract agrees on a monthly salary, the daily salary is determined by dividing the monthly salary by the number of normal working days in a month as chosen by the enterprise according to the law. If the labor contract agrees on a weekly salary, the daily salary is determined by dividing the weekly salary by the number of working days in the week as agreed in the labor contract;+ Hourly salary is paid for an hour of work. If the labor contract agrees on a monthly, weekly, or daily salary, the hourly salary is determined by dividing the daily salary, as determined above, by the number of normal working hours in a day according to Article 105 of the Labor Code.
- Salary by product is paid to employees based on the completion level of the quantity and quality of products according to labor norms and unit prices for the assigned products.
- Contract-based salary is paid to employees based on the volume, quality of work, and the time required to complete it.
- Employee salaries according to the payment forms mentioned above can be paid in cash or via the employee’s personal account opened at a bank. Employers must cover all fees related to opening the account and transferring salaries if they choose to pay via the employee’s personal account.
It can be seen that the contents regarding payment forms for employees mentioned above are already regulated in Decree 05/2015/ND-CP. This Draft continues to inherit and further detail the contents in Decree 05 to address current issues effectively.
See more details about this Draft Decree HERE.
Nguyen Trinh
