Circular No. 04/2018/TT-BLDTBXH dated June 22, 2018 amendments to Circular 37/2016/TT-BLDTBXH providing guidelines for management of employees, wages, remunerations and bonuses paid to employees working in Vietnam Asset Management Company

CIRCULAR

AMENDMENTS TO CIRCULAR NO. 37/2016/TT-BLDTBXH DATED OCTOBER 25, 2016 PROVIDING GUIDELINES FOR MANAGEMENT OF EMPLOYEES, WAGES, REMUNERATIONS AND BONUSES PAID TO EMPLOYEES WORKING IN VIETNAM ASSET MANAGEMENT COMPANY

Pursuant to the Government’s Decree No. 14/2017/ND-CP dated February 17, 2017 defining the functions, tasks, powers and organizational structure of the Ministry of Labour, War Invalids and Social Affairs;

Pursuant to the Government’s Decree No. 53/2013/ND-CP dated May 18, 2013 on the establishment, organization and operation of Vietnam Asset Management Company; the Government’s Decree No. 34/2015/ND-CP dated March 31, 2015 and the Government's Decree No. 18/2016/ND-CP dated March 18, 2016 on amendments to the Government’s Decree No. 53/2013/ND-CP dated May 18, 2013 on the establishment, organization and operation of Vietnam Asset Management Company;

Pursuant to the Government’s Decree No. 51/2016/ND-CP dated June 13, 2016 on management of employees, wages, remunerations and bonuses paid to employees working in single-member limited liability companies of which charter capital is wholly owned by the State; the Government’s Decree No. 52/2016/ND-CP dated June 13, 2016 providing for salary, remuneration and bonus payment to managers of single-member limited liability companies of which charter capital is wholly owned by the State;

At the Director General of the Department of Industrial Relations and Wage;

The Minister of Labour, War Invalids and Social Affairs promulgates the Circular providing amendments to Circular No. 37/2016/TT-BLDTBXH dated October 25, 2016 providing guidelines for management of employees, wages, remunerations and bonuses paid to employees working in Vietnam Asset Management Company.

Article 1. Amendments to Circular No. 37/2016/TT-BLDTBXH dated October 25, 2016 providing guidelines for management of employees, wages, remunerations and bonuses paid to employees working in Vietnam Asset Management Company (VAMC)

1. Point b Clause 2 Article 3 of Section 2 is amended as follows:

“b. The profit (planned or realized in the current year or previous year) is replaced by the difference between revenues and expenses (total revenue minus total expenses).”2 . Article 4 of Section 2 is amended as follows:

“1. When determining planned and realized salary budgets for employees, VAMC may disregard objective factors that may cause impacts on labor productivity or the difference between revenues and expenses, including:

a) Impacts of objective factors specified in Article 11 of the Circular No. 26/2016/TT-BLDTBXH..

b) The State decides to make intervention that directly affects the difference between revenues and expenses, or the purchase or sale of bad debts and collaterals; adjust the ratio calculated according to the amount collected from bad debts bought by VAMC with special bonds; adjust the ratio calculated according to the closing balance of the debts bought by VAMC with special bonds.

c) VAMC makes new investments in business (excluding investments, repair and upgrading of collaterals which VAMC has bought for establishing business offices or for lease).

2. Disregarding of objective factors specified in Clause 1 of this Article shall be carried out as follows:

a) The labor productivity or the difference between revenues and expenses that is affected by such objective factors must be quantified and expressed in specific figures.

b) When calculating the annual labor productivity or the difference between revenues and expenses, VAMC may add (or deduct) the amount of labor productivity or the difference between revenues and expenses decreased (or increased) due to such objective factors.

c) On determining its realized salary budget, VAMC must take into account the objective factors that may cause impacts on the labor productivity or the difference between revenues and expenses compared with the planned ones.”

3. Point b Clause 2 Article 6 of Section 3 is amended as follows:

“b. Disregarding of objective factors that may cause impacts on the labor productivity or the difference between revenues and expenses is carried out under regulations of Article 4 of this Circular.”.

Article 2. Implementation

This Decree comes into force as from August 15, 2018. Regulations specified in this Circular shall be applied as from January 01, 2018.

Difficulties that arise during the implementation of this Circular should be promptly reported to the Ministry of Labour, War Invalids and Social Affairs for consideration.