Deduction on procedures for submitting pay scales, payrolls for enterprises

Under current regulations, all enterprises, when making or revising their payscales, payrolls and labour productivity norms must submit them to the district-level State management agent on labour where their production and business establishments are located for the purpose of monitoring and inspection. With respect to enterprises having many business locations and branches operating in different areas, they must submit such dossiers to district-level State management agent on labour where such business locations or branches are located.

However, from 1 November 2018, enterprises using less than ten (10) laborers will not have to submit payscales, payrolls and labour productivity norms to the district-level State management agent on labour where business locations and branches of such enterprises are located.

This is the new outstanding point of Decree No.121/2018/ND-CP issued by the Government on 13 September 2018 (“Decree 121”) amending Decree 49/2013/ND-CP guiding the 2012Labour Code. This regulation aims at simplifying labour mandatory procedures of the enterprise, at the same time, reducing managerial pressures of local State management agent.

Decree 121 will officially take effect on 1 November 2018.