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MINISTRY OF EDUCATION AND TRAINING VIETNAM ACADEMY OF SOCIAL SCIENCES GRADUATE ACADEMY OF SOCIAL SCIENCES PHẠM THỊ LIÊN NGỌC SALARY IN THE ENTERPRISE ACCORDING TO THE CURRENT VIETNAMESE LABOR LAW Major: Economic Law Code: 9380107 SUMMARY OF DOCTORAL THESIS IN LAW HA NOI - 2019 The thesis is completed at GRADUATE ACADEMY OF SOCIAL SCIENCES Supervisor: Assoc Prof., Dr. Nguyen Huu Chi Reviewer 1: Prof., Dr. Hoang The Lien Reviewer 2: Prof., Dr. Nguyen Thi Mo Reviewer 3: Assoc Prof., Dr. Nguyen Hien Phuong The thesis shall be defended in front of the Thesis Committee at Academy Level at GRADUATE ACADEMY OF SOCIAL SCIENCES At.......hour........date........month....... 2019 The thesis can be found at The library of Graduate Academy Of Social Sciences and National Library LIST OF PUBLISHED WORKS OF THE AUTHOR RELATING TO THE THESIS 1. Pham Thi Lien Ngoc, “Perfecting the law on wages in enterprises in Vietnam”, Journal of Democracy and Law, edition July (316) in 2018, Section of Building legislation, pages 23-26. 2. Pham Thi Lien Ngoc, “Law on wages and practical application in enterprises”, Financial Journal, editon 682, period 1- June 2018, Section of Enterprise finance, page 6668. 1 INTRODUCTION 1. Rationale The enterprise salary plays an important role, has profound effects not only on socio-economic issues in macro level of the economy but also directly on employees' life and their family. Over the years, the Party and the State have paid much attention to the issue of employees' salary in enterprises by the promulgation of the Labor Code, effective from January 1, 1995 with four times of amendments and supplements in 2002, 2006, 2007 and 2012. In addition, competent state agencies also have issued a lot of normative documents that regulate the enterprise salary. Typically, there are regulations on minimum wage, the principle of building payroll in different types of enterprises. Those regulations initially have been creating the legal basis for social relations on salary whose formation and development according to the law of the socialist-oriented economy, have been not only contributing to create fairness and transparency in paying salary but also protecting employees’ rights. However, besides changes and fluctuations in the labor market, the social relations on salary are also growing more diverse. Enterprises can easily use their specific reasons to set their own regulations on salary that are causing disadvantages for employees, making difficulties for the state inspection and supervision on payrolls and employees’ actual payment, affecting badly the living standard of employees as well as ensuring the deduction rate to social insurance, health insurance, unemployment insurance, causing consequences in eco-social life. In fact, over the time, there has not been any research to systematically and comprehensively study this issue. Therefore, the PhD students choose the topic “Salary in the enterprise according to the current Vietnamese labor law” as a doctoral thesis with theoretical and practical significance, contributing to improve the law performance on enterprise salary nowadays. 2. Purposes and missions of the thesis 2.1. Purposes of the thesis The purpose of the thesis is clarifying the theoretical and practical 2 basis of enterprise salary. Therefore, the thesis assesses the practical issues of current legal regulations and proposes solutions to improve the law on salary in enterprises. 2.2. Missions of the thesis - Re-systemizing the content of legal theory on enterprise salary. - Evaluating the legal content of salary in enterprises, including the advantages and limitations of the current legal regulations. - Determining the direction and propose solutions to improve the current legal regulations on enterprise salary. 3. Objects and scope of the thesis 3.1. Objects of the thesis The object of the thesis includes the system of legal regulations governing salary in enterprises: The Labor Code and guiding documents, other relevant legal documents, scientific published research related to the thesis topic. 3.2. Scope of the thesis The scope of the research is the system of legal regulations governing salary in enterprises generally. The thesis does not focus on particular salary regulations of any enterprise. The study period is determined from 2013 to 2018, with comparisons and references to previous periods. 4. New scientific contributions of the thesis The thesis has systematized and generalized the theoretical issues about salary in enterprises and laws on salary; Pointed out the role of the law on enterprise salary that are used as an important legal tool in protecting employees; analyzed the current situation and shortcomings of the law on enterprise salary and law enforcement mechanisms; Proposed solutions to improve the law and law enforcement mechanisms on enterprise salary in Vietnam. 5. Scientific and practical meanings of the thesis About theoretical meanings, the thesis contributes to summarizing the theoretical and legal issues of salary in enterprises, thereby the thesis gives some scientific theory to complete the thesis topic. 3 About practical meanings, the thesis contributes to practical evaluation, points out the advantages and limitations of legal regulations and pratical situation of salary in enterprises. The results of the thesis will provide the legal science a more general view, contribute certain practical values to legal scientists and enterprises in legislation and law application on the enterprise salary. 6. Structure of the thesis The thesis includes introduction, 4 chapters conclusion, recommendation, list of published works, references and appendix. Chapter 1 OVERVIEW AND RELATED MATTERS ABOUT RESEARCH 1.1. Overview about research 1.1.1. Abroad studies Group of studies related to salary in enterprise Firstly, group of studies about salary under economic perspective - Typical research in this perspective are: Textbook of Labor economics of Prof., Dr. Pogosian GP and Prof., Dr. Giucop; The book: Modern labor economics: Theory and public policy of Ronald G. Ehrenberg , Robert S. Smith; States with Minimum wage above the Federal level has had small business overcoming and retail job growth of Fiscal Policy Institute,... Secondly, the studies analized related contents of salary in some perspectives: payroll, payment methods, minimum salary. Some typical research: The effect of mininmum wage throughout the wage distribution of Neumark; The Advantage Of The Minimum Wage of Robert Nielsen,…; Thirdly, those research and studies have shown that salary has been a sentitive issuse to achieve the goal of building a progressive and transparent labor market in the integration context, following the formation of economic and political communities and labor mobility between countries and regions. Some typical research in this perspective are: The effect of mininmum wage throughout the wage distribution of Neumark, D. and Wascher, W.; The tail of two countries: 4 Minimum wage and employment in United States and France of Abowed,… Group of studies related to legal provisions on enterprise salary that are focused on some research: Theory and public policy of Ronald G. Ehrenberg, Robert S. Smith, Rudolph J. Rummel, Understanding Factor Analysis of Rudolph J. Rummel; ILO 2006: Minimum wages policy, ... 1.1.2. Vietnamese studies Firstly, published works and documents discussed and pointed out characteristics of salary in economic perspective and emphasized the need to adjust by law of salary issues in enterprises. Typically, the topic: “Labor law on enterprise salary - some theoretical and practical issues” by Le Thi Quynh Hoa and “Labor law on enterprise salary and practical application in Hai Duong province” by Nguyen Manh Tuan. Secondly, the studies interpreted and answered those questions: Who has the right to decide on the payment of salary to employees in each enterprise? How is the State's intervention in the issues of enterprise salary? How effective is the tripartite mechanism in negotiating and agreeing on salary issues? What are responsibilities of representive organizations of the employees in negotiating, signing collective labor agreements... Typical research: Current salary and income policies in Vietnam by Mai Ngoc Cuong; Research on salaries and income in non-state enterprises in Hanoi by Vu Hong Phong. Thirdly, with the importance of salary in labor relations, some studies suggested that there should be a legal valid document as the Salary Law in legal documents system regulating the labor field. Fourthly, the research related to examinating, monitoring and evaluating the effectiveness of the application of labor laws on salary, the rights and obligations of the parties in labor relations related to salary issues. 1.1.3. Evaluating the research situation related to the thesis topic Theoretically, those studies have basically raised some legal arguments about the enterprise salary, but have not yet systematically clarified the theory of salary in enterprises according to labor laws. 5 Practically, those research has raised many situations in each aspect. However, there have not been any studies that overall evaluated situation of the current situation of enterprise salary in Vietnam. Relating to the solutions, few domestic studies have approached under the perspective of labor law on salary. However, there has not been a systematic study on this issue. Therefore, a comprehensive research is needed about enterprise salary in current Vietnamese labour law. 1.2. Theretical basis and research methods of the thesis 1.2.1. Theretical basis 1.2.1.1. Research theory The thesis applied theory of business - labour administration approach, management theory, general theory of salary management, theory of human resource management. The thesis researchs on the basis of the theory about roles of State and Law in economy, the theory of the socialist rule-of-law state of Vietnam, the theory related to labor law on salary. 1.2.1.2. Research questions, research hypothesis of the thesis * Research questions: Which theoretical and practical issues about salary in enterprises according to labor law are studied and not studied or not clarified? - What are the orientations and solutions to improve the salary issue in enterprises according to labor law in the future? * Research hypothesis: The current theory and regulations current Vietnamese law do not meet the requirements of the salary issues in enterprises; the practical situation has many loopholes; the solutions to improve salary in enterprises under labor law have not been studied systematically, deeply and comprehensively. 1.2.2. Research methods The PhD student used some methods such as: Methods of analysis and synthesis, systematic methods, comparative law methods, specific historical methods, methods of statistic, methods of expert interviews... Chapter 1 Conclusion 6 Chapter 2 THEORETICAL AND LEGAL MATTERS ON SALARY IN ENTREPRISE 2.1. Theoretical matters on enterprise salary 2.1.1. Concept of salary in enterprises Under the perspective of enterprises, salary in enterprises are understood as the amount that employers must pay to employees based on productivity, quality, work efficiency and working conditions, determined by agreement between two parties in labor relations and not contrary to legal regulations. 2.1.2. The nature of salary in the enterprises Firstly, the nature of salary in enterprises is expressed in its economic perspective, that is the result of the negotiating and exchanging labor goods that are provided by the employees in a period of time; or the result of a product or service introduction that the employees will receive an amount agreed with the employer. In market economy, salary is dominated by the rule of value and the law of labor supply and demand. In social perspective, salary is also a guarantee for employees to cover their life and family. Therefore, employees can also receive allowances based on salary, bonus and welfare. 2.1.3. Factors affecting salary in enterprises * Factors from labor supply and demand * Factors from internal enterprises and employers * Factors from employees * Collective labor agreement on salary * Factors from legal policies of the State * Factors from international integration 2.2. Theory of law on salary in enterprises 2.2.1. Concept of law on salary in enterprises Although salary is an economic factor that is put into the value and cost of products by employers, the state needs to manage and monitor salary in enterprises to protect employees who have lower position in 7 labour agreement as well as to ensure social objectives that are avoiding exploitation, ensuring the reproducing and accumulating labor capacity; The promulgation of legal regulations to state salary in enterprises forms a legal framework on salary in enterprises, so that law on salary is a combination of regulations issued by the State to determine rights and obligations of parties in the field of salary and minimum salary; to adjust principles for setting up a system of payrolls and labor norms. 2.2.2. Objects of law on salary in enterprises Objects of law on salary in enterprises are legal relations on salary in enterprises. There are 2 groups of objects: First, legal relation on salary in enterprises between employees and employers Second, legal relation on salary in enterprises between employees and employers with the State’s participation. 2.2.3. The basic principles of salary * Salary in eneterprises is decided by employers Based on the nature of corporate governance, business owners have the right to determine the elements of business issues from which to seek profits for business. The State does not interfere with the payment of enterprise salary, but only promulgates principles to build salary scales, payrolls, labor norms and supervises the minimum salary to protect employees and ensure social security and safety * Employee's salaries must be paid based on an agreement with employers and base on productivity, quality and work efficiency but not lower than the minimum salary stipulated by the State. The nature of labor relations regulated by labor law is a free agreement. In each enterprise, the salary agreement can be implemented at different levels such as individual agreements through labor contracts or collective agreement (collective labor agreement), including subcontracts allowances, bonuses,... are all agreed by parties in labor relations. On the law basis, parties in labor relations, especially employers, need to comply with the limits set by the State such as minimum salary, payment principles, payment time... to ensure legal valid for agreements between the parties. 8 * Principle of non-discrimination in the field of salary Employers must ensure equal payments, regardless of gender for the same valuable work of employees 2.2.4. Adjusting methods of law on salary in enterprises - Method of agreement - Administrative methods - Combining method of agreement and administrative method 2.2.5. Contents of of law on salary in enterprises Minimum salary The minimum salary is understood as the lowest amount to pay employees to do the simplest work in normal labor conditions and must ensure the minimum living needs of employees and their families. The minimum salary has the effect of reproducing simple labor power, ensuring the minimum demand and re-manufacturing of labor. The minimum salary is regulated by the State, which is mandatory for both parties in labor relations, which means that the minimum salary cannot be lowered by both employers and employees. The minimum salary has sone characteristics such as: it is paid for a labor at the simplest level, for the lightest labor intensity, for the labor takes place under normal conditions; The minimum salary must ensure the minimum consumption demand for employees and their families; The minimum salary is determined by the cost of living in the region with the average cost of living. Usually there are two types of minimum salary: minimum regional salary and minimum salary in industry sectors. The Convention No.131 in 1970 of the International Labor Organization (ILO) noted that: The elements to be taken into consideration in determining the level of minimum wages shall, so far as possible and appropriate in relation to national practice and conditions, include: a) the needs of workers and their families, taking into account the general level of wages in the country, the cost of living, social security benefits, and the relative living standards of other social groups; b) economic factors, including the requirements of economic 9 development, levels of productivity and the desirability of attaining and maintaining a high level of employment. The minimum salary plays an important role in the labor law system. Most countries in the world have law to adjust this issue. Principles of building wage scales, payrolls and labor norms * Wage scale: The wage scale is a correlation rate of wage between the skilled workers and others who work in the same profession or a group of occupations with clear technical standards. * Payroll: Payroll is a correlation rate of wage between employees in the same industry according to the levels, work experience or actual work undertaken by the employees. * Labor norms: Labor norms are the regulation set by enterprises in terms of quantity and quality of products corresponding to a certain amount of labor time, applied to each group of laborers, certain working groups within specific scopes. Allowance and supplementary salary amount Allowance is a component of salary which has additional effects, helps improve the employee's salary. The allowance regime may be agreed by both parties or fixed by the employer, recorded in individual labor contracts or collective labor agreements. There are a number of allowances: responsibility allowance, toxic allowance, working seniority allowance, ... * Payment methods - Payment methods by time - Payment methods by products - Payment methods by stock salary - Other provisions on salary payment in some special cases * Salary deduction The employer can only deduct the employee's salary to compensate for damage caused by employees to the employer's tools and equipment. Employees have the right to know the reason for deducting their salary. Monthly deduction of salary cannot exceed a monthly percentage of employee's income after deducting compulsory social insurance, health insurance, unemployment insurance and income tax. 10 * Rights and obligations of employers and employees in term of wages - Employers: Labor relations are formed and maintained in the form of labor contracts, in which the rights and interests of the parties are agreed by the parties on the law basis. Employers, as owners and capital investors as well as employers and users of labor, have rights to decide income distribution in enterprises such as the right to build payroll system, labor norms, wage regulations and salary allowances... - Employees: Employees must comply with the regulations of employers in the field of salary such as salary scales and payrolls suitable to their professional qualifications; being assigned appropriate labor norms; being paid directly, fully and on time; knowing the reason for all wage deductions, having right to receive advance salary... Chapter 2 Conclusion Chapter 3 PRACTICAL REGULATION AND APPLICATION ON SALARY IN ENTERPRISES UNDER CURRENT VIETNAMESE LABOR LAW 3.1. Salary in enterprises under current law 3.1.1. Law on the basic principles of salary The basic principles of salary which are recorded in the law on salary are the the foundation for applying law of labor relations. These principles are all aimed at creating fairness and protection of employees in the weak side of relationship with employers. 3.1.2. Law on the minimum wage In market economy, wage is adjusted through negotiations, between individuals or collective of emplyee with employers. In Vietnam, the basic criteria to determine the minimum wage is the balance of labor supply and demand, the economic capability of employers, cost of living index, inflation,... The National Wage Council has a regular duty to provide a minimum wage for employees. The mechanism to establish regional minimum wage is based on national three-party bargaining on market 11 principles, through the results of negotiations and recommendations of the National Wage Council. 3.1.3. Law on wage scales and payroll Employers are responsible for building salary scales, payrolls, and labor norms as a basis for recruitment, employment and agreement on the salary stated in labor contracts and salary for employees. The employer needs to consult the representative organization of the employee at the establishment, publicly announce it at the employee's workplace. After that, send a notice to the competent management agency at the district level, where the business and production establishment of the employer is located. The construction of wage scales, payrolls and reasonable determination of allowance levels must be derived from different characteristics in each industry and in each specific working condition. 3.1.4. Law on building labor norms Some principles to build labor norms: Implementing for each step and each stage in job and the whole process of product production; Building on the level of work or title; Labor level must be an advanced average, ensuring that the majority of employees can perform it; The new labor level must be tested before being officially issued; Periodically reviewed and evaluated to modify, supplement and adjust accordingly. When formulating or adjusting labor levels, enterprises must consult the organizations representing the collective of employees in enterprises and make public at the employees' work places and send them to competent management agencies. 3.1.5. Other regulations about salary * Salary allowance The regulation of many allowances are leading to the allowance a relatively large proportion of the total income of employees, reducting the importance of salary. Therefore, from the Party and the State’s point of view, especially the Resolution No. 27/2018 of the Party requires the agencies to conduct research to review and amend the legal provisions on wage allowances in which the total number of salary allowances does not account for more than 30% of the employee's total income. 12 * Bonus The bonus regime for the production area is very diversity in form. Bonus fund is created from many sources: Business production efficiency, good performance of economic contracts, product quality... Bonus regime for employees includes many modes: completion of norms with high quality products, material saving... * Payment when employees stop working This regulation a legal corridor to resolve conflicts about salary when employees have to stop working due to subjective or objective reasons. However, still having to pay salaries easily leads to losses for employers, so it is necessary to have regulations that are agreed between employees and employers. * Payment when employees work overtime Some regulations are unreasonable, especially in the field of labor with fixed norms, is calculated in advance, if applied, it will lead to production costs and reduce competitiveness of products or decline in profits of employers. This requires regulations for specific sectors. * Payment in leave regime Enterprises often apply the calculation from the minimum wage multiplied by the employee's coefficient of benefits, leading to the fact that the actual amount is much lower than that of the employee when working normally. This makes employees not interested in long-term leave, but focus on short vacations for reasons of personal reasons. * Payment through contractors In fact, there are cases where employers do not directly manage, use and pay wages to employees, which are performed by contractors. If the contractor does not pay wages and other benefits to employees, the main employer must be responsible for paying wages and ensuring such benefits for the employees. The employer has the right to ask the contractor to compensate in accordance with the legal regulations. * Advance salary Under the provisions of Article 100 of the Labor Code 2012, employees are entitled to have advance salary in case: (1) Employees are paid in advance according to the conditions agreed by the two 13 parties; (2) Employers must pay advance salary corresponding to the number of days employees temporarily leave to perform their civic obligations from 01 week or more but not exceed 01 month's salary and must repay the advance amount unless perform military service. 3.2. Practical implementation of the law on wages in enterprises in Vietnam recently General assessement The average income of employees increased steadily over the years, by the fourth quarter in 2016, it reached 5.08 million VND, of which male reached 5.24 million VND and female reached 4.85 million VND. The salary in public sector gradually improved, State’s enterprises were given more autonomy in managing labor; income and bonuses for employees and managers; clearly assigning responsibilities of enterprises, controllers, owners and management agencies in monitoring and inspecting wage regime and bonuses of enterprises; supplementing regulations on publicity in terms and bonuses; salaries associated with labor productivity and production efficiency, ensuring the autonomy of enterprises in determining and paying salary for employees. The Labor Code has determined the basic principle of salary payment for employees according to agreement principles. Besides, there are guiding documents to protect employees’ salary. However, the management on salary in enterprises still has some problems. The rate of enterprises implementing the building and sending salary scales and payrolls to local labor management agencies is still low: foreign invested enterprises are about 30%, private enterprises are about 10%. The formulation and amendment of payroll scales; regulations on salary payment, bonus payment, salary increase for employees are still slow. Many enterprises set up a salary scale for many levels, separating salary into many allowances, subsidies and other supplementary amounts to escape social insurance premiums. Some enterprises stipulate criteria for salary increase, allowance for benefits, allowances and bonuses which are complicated and difficult for employee to monitor and supervise their performace. 14 Mechanism of adjusting wage in enterprises with 100% stateowned capital, enterprises with state-owned shares is ineffective, has not created motivation for enterprises to do business effectively and have not controlled well the labor costs in losing businesses: Salary of managers of state-owned enterprises is too high while business performance of enterprises is low; The stipulation of wage scale for state managers according to the relationship of administrative area, while employees follow the wage scale by construction enterprises, which leads to the same enterprise, income to calculate social insurance, salary of the retired employees may be higher than the manager. * Strikes are mainly caused by low wages: According to statistics from the Ministry of Labor, Invalids and Social Affairs, in 2017, the country had 314 strikes and collective cessation. The main reason is the minimum wage and labor norms. Employees are paid improperly, the wage are still low or owed; employers are not paid bonuses, along with working conditions and extreme intensity of labor. Many businesses have adjusted the minimum regional wage but cut, reduced subsidies and allowances, so the income of some employees is basically not improved. 3.2.1. The minimum wage In Vietnam, the National Wage Council has a regular duty to provide a minimum wage for employees. Since its establishment, the Council has 6 times successfully held negotiations and the adjustment level announced by the Government is also the level recommended by the Council (the average level in 2014 increased by 15.4%; in 2015 increased by 14.2%, by 12.4% in 2016, by 7.3% in 2017, 6.5% by 2018 and by 2019 by 5.3%). The minimum wage is determined by region in accordance with natural characteristics, economic and social conditions, policies to attract investment and develop labor market of the region and the country. The process of adjusting the minimum wage increases gradually in accordance with the social economic conditions, the payment ability of enterprises (especially small and medium-sized enterprises), contributing to ensuring employees’ life, stabilizing the labor market and labor 15 relations in enterprises. The minimum regional wage in 2018 is from 2,760,000 to 3,980,000 VND per month (about USD 121 to 175 per month) that ensures competitiveness in attracting investment compared to other countries in the region (higher than Laos, Cambodia, and Myanmar). The actual salary payment of enterprises for employees is not low in comparision with the minimum wage announced by Government. Many businesses have set labor norms, scales, payrolls and appropriate forms of salary payment, creating a driving force to promote production, business development, contributing to ensuring employees' life. However, the law on minimum wage has revealed some limitations: Legalization of minimum wage has not been specific and completed, especially the determinants of the new minimum wage mainly emphasize the minimum living needs of employees, the lack of elements of labor market, production, business and competitiveness of the economy. Currently, the minimum wage is still low, not ensuring the minimum living needs of employees, causing much frustration for employees. The low minimum wage is a huge implication for the implementation of employee welfare policies such as sickness, maternity, unemployment, overtime pay... Employers often base on the minimum wage to sign labor contracts, paying wages, and deducting insurance for employees close to or far less than the regional minimum wage. This situation will lead to very low social insurance and pensions of employees, failing to ensure life when they retire. However, paradoxically, enterprises in Vietnam are mainly small and medium scale, low labor productivity, if they quickly adjust to ensure the minimum living needs of employees, many businesses will face difficulties and reduce capacity, lose their income, the labor market is unstable. It is very difficult to reconcile interests between the parties. Taking the base of district administrative area to divide into 4 regional wages by the Government is irrelevant and fragmented. There is not minimum wage set by the hour, so the minimum rate does not cover and protect employees who do not work full-time; the 16 composition, functions, and operational mechanisms of the National Wage Council are still limited and need to be further improved in accordance with the integration process and participation in international agreements. The implementation has not been synchronous and widespread, the private sector and cooperatives mainly have lovw rate of minimum wage. Employers do not want to adjust the minimum wage increase, the employee itself is not fully aware of their rights. The promulgation of the Decree on the minimum wage of the Government is still slow, leading to the implementation of guidelines for implementation to slow establishments, making businesses passive in developing annual minimum wage. State management on the implementation of the minimum wage regime is still limited; the impact assessment has not been carried out when adjusting the minimum wage level, especially in checking and monitoring the minimum adjustment. Collective bargaining in the minimum wage and wage in enterprises is low; almost enterprises have not reached an agreement on higher minimums than regulated. The sanctions for handling violations in the implementation of the minimum wage are not strong enough, the lack of measures and monitoring mechanisms lead to the tendency to force the employee’s wage to close to the minimum wage, affecting the employee's interests as the main cause of leading to labor disputes and strikes. 3.2.2. The principle of building salary scales and payrolls Salary scales: Because the labor market in Vietnam has not yet completed, the agreements on wage have not really taken effect, the State has stipulated a number of general principles for enterprises to build ladders and tables, contributing to limit the situation of wage pressure. Therefore, employee benefits are more secure. However, the gap between the salary levels in the salary scale of enterprises is not clear, confusing and inadequate. The Government stipulates the principle of building payrolls that interfere with the structure of payrolls of enterprises, 17 leading to discouraging salary by job but mainly by seniority, making businesses do not want to use labor with many seniority Payrolls The system of salary scales and payrolls of all types of enterprises shows that the wage scale is almost the same. However, for the equitized enterprises from the previous state-owned enterprises, there has been more progress, that is, there are three types of wage scales: Applied to laborers with unskilled education; Applied to trained laborers from intermediate or higher; Applied for high-level labor is attractive, encouraging laborers with high experience. The salary scale in enterprises is only calculated by multiplying the minimum salary set by the State and then calculating the payable regime of employees for compulsory or voluntary funds stipulated by the State such as social insurance, security Health insurance, unemployment insurance... This also leads to the fact that the actual income of the employees is high, but the contribution to the funds is low, making the future payment is. 3.2.3. The principle of building labor norms Labor norms are a matter of great concern of the State, through the regulation and control of labor norms for a number of labor and employment sectors, the State also closely monitors the labor norms set by internal regulations of enterprises. On the basis of stipulating the principles and bases for building labor norms, the State has contributed to minimizing the imposition and even exploitation of labor force of employees. However, in fact, there are still some enterprises, the application of high labor norms to employees is still very sophisticated and complicated. Although the minimum wage is still applied, some enterprises create certain difficulties for employees, which are building labor norms too high, with strict conditions to make employees spend a lot of effort; only working overtime can meet the minimum wage if the employees want to increase income. Therefore, the state management agency should issue effective regulations and implement strict monitoring to end this situation. Chapter 3 Conclusion
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