Takes effect on August 01, 2016, Decree No. 51/2016/ND- CP of the Government on management of employees, salaries, bonuses of employees in single-member limited liability companies of which charter capital is wholly owned by the State, includes: Parent companies of State-owned economic corporations or State-owned general companies or parent companies belonging to the group of parent- subsidiary companies; Independent single-member limited companies wholly owned by the State.
In accordance with this Decree, single-member limited liability companies of which charter capital is wholly owned by the State shall prepare an annual employment plan as the basis for recruitment and allocation of employees; in normal operational conditions, the average number of employees in the annual employment plan shall not exceed 5% of the actual employees of the immediately preceding year.
In case the number of recruited employees exceeds that in the employment plan or is inconsistent with the employment plan causing downsizing due to lack of work, the Director General and Director or the Board of Members or President shall take responsibilities and shall not be awarded any bonus or pay raise or even have their salary cut. This is considered as one of criteria for management performance assessment under the Government’s Decree No. 97/2015/ND-CP dated October 19, 2015
Also in this Decree, every company shall set aside a reserve fund for the salary budget of the following year according to their realized payroll. The reserve fund shall not exceed 17% of the realized payroll. For seasonal companies, the reserve budget shall not exceed 20% of the realized payroll.
