Every start-up enterprise usually has a lot of human resources to do, such as declaring employment, registering to participate in social insurance, etc. Below is a summary of 13 crucial human resource jobs that a new business needs to do.
1. The signing of the labor contract
Legal grounds: Section 1, Chapter III of the 2012 Labor Code.
Specific work: Before accepting workers to work, enterprises must directly sign labor contracts with them.
In case the employee is from 15 to under 18 years old, the enterprise is only allowed to sign the contract with the consent of the legal representative.
The employment contract must be in writing in one of the following categories (temporary jobs with a term of fewer than three months may create a verbal agreement):
– Indefinite-term labor contracts;
– Definite-term labor contract;
– A seasonal labor contract (or a specific job with a term of fewer than 12 months).
Deadline: Immediately after the employee satisfies the requirements of probation.
2. Report on employment
Legal grounds: Clause 1, Article 8 of Decree 03/2014 / ND-CP.
Specific work: Declare employment with the Department of Labor, War Invalids, and Social Affairs and its headquarters, branches, and representative offices.
Deadline: Within 30 days from the date the business starts operating.
3. Notice of the number of employees
Legal grounds: Clause 1, Article 16 of Circular 28/2015 / TT-BLDTBXH.
Specific work: Inform the Employment Service Center of the number of working employees.
Deadline: Within 30 days from the date of establishment.
4. Making a labor-management book
Legal grounds: Article 7 of Circular 23/2014 / TT-BLDTBXH.
Specific work: Make a labor-management book at the location of the head office, branches, and representative offices.
The employer has the right to choose the form of the labor-management book in paper or electronic form that is suitable to the management needs but must ensure the following essential contents about the employee:
– Full name, gender, year of birth, nationality, address, identity card number (or passport);
– Technical qualification;
– Level of occupational skills;
– Job position;
– Type of labor contract;
– Time to start working;
– Status of participation in social insurance, health insurance, and unemployment insurance;
– Raising grade, raising salary;
– Number of days off in the year and reason;
– Number of overtime hours (on weekdays, weekly breaks, annual leave, public holidays, New Year holidays);
– Receiving social insurance and health insurance benefits;
– Apprenticeship, training, retraining, improving vocational skills level;
– Labor discipline, material responsibility;
– Labor accident, occupational disease;
– Time of labor contract termination and reason.
Deadline: Within 30 days from the date the business starts operating.
5. Set up the wage scale and the payroll
Legal grounds: Article 93 of the 2012 Labor Code.
Specific work: Setting up the wage scale, payroll, and labor norms to serve as a basis for recruiting, employing, negotiating wages in labor contracts, and paying workers.
Based on the organizational structure and employment, an enterprise builds a wage scale and payroll for managerial, professional, technical, direct production, business, and service workers.
The gap between the two adjacent wage grades must be at least 5% to encourage employees to improve their technical and professional qualifications, experience accumulation, and talent development.
The lowest wage for a simple job or title under normal employment conditions cannot be lower than the regional minimum wage.
The lowest wage for a job or title requiring workers to undergo vocational training (including those taught by enterprises) must be at least 7% higher than the regional minimum wage.
The salary of the job or title with heavy, toxic, and dangerous working conditions must be at least 5% higher than the salary of a job or title of equivalent complexity, working under normal circumstances. The salary of a job or title with extremely difficult, toxic, or dangerous working conditions must be at least 7% higher than the salary of a job or title of equivalent complexity, working under normal circumstances.
Note: Enterprises employing less than ten employees are exempt from the procedure for sending wage scales, payrolls, and labor norms to the District-level State Administration of Labor.
6. Signing and notification of collective labor agreement (if any)
Legal grounds: Sections 3 and 4, Chapter V of the 2012 Labor Code.
Specific work: Organize the negotiation between the labor collective and the employer about the working conditions and sign the achieved contents when more than 50% of the workers of the labor collective vote to agree.
Deadline: Within ten days after signing, the enterprise sends a collective labor agreement to the Department of Labor, War Invalids, and Social Affairs (at the district level).
7. Set up the written labor regulations
Legal grounds: Article 119 of the 2012 Labor Code.
Specific work: Enterprises employing ten or more employees must set up the written labor regulations with the following principal contents:
– Working time and rest time;
– Regulations at work;
– Occupational safety and labor hygiene at the workplace;
– The protection of asset and business know-how, technological secret, and intellectual property of the employer;
– Acts of violating labor discipline and handling methods; Material responsibility.
Deadline: Within ten days of the issuance of the written labor regulations, the enterprise must submit its dossier to the Department of Labor, War Invalids, and Social Affairs (at the district level).
8. Register individual tax code for employees
Legal grounds: Article 7 of Circular 95/2016 / TT-BTC.
Specific work: The business deducts the workers’ income tax before paying salaries or wages (in case their income is so high that they have to pay personal income tax).
Individuals who already have a tax code must provide it to the business. If they don’t already have it, they can register it themselves (or give its profile to the company).
9. Register social insurance, health insurance, unemployment insurance for the first time
Legal grounds: Article 2 of the 2014 Law on Social Insurance and Decision 772 / QD-BHXH.
Specific work: Enterprises employing employees covered by social insurance, health insurance, and unemployment insurance are responsible for registering to participate in these types when signing labor contracts.
Contact us for detailed advice on this registration for the first time.
10. Declare machines, equipment, supplies, and substances with strict requirements on occupational safety and sanitation (if any)
Legal grounds: Article 30 of the 2015 Law on Occupational Safety and Hygiene.
Specific work: Machines, equipment, and supplies subject to strict labor safety requirements must be tested before being put into use by the occupational safety technical inspection organization.
When using them, enterprises must declare to the specialized agencies under the Provincial People’s Committees at the place of use. The list of machines, equipment, and supplies with strict occupational safety requirements is attached to Circular 53/2016 / TT-BLDTBXH.
11. Pay the monthly insurance fees
Legal grounds: Chapter II of Decision 595 / QD-BHXH.
Specific work: After registering to participate in various types of insurance with employees, enterprises need to pay monthly insurance premiums to the social insurance agency at the prescribed rate.
Deadline: No later than the last day of the month (if paid monthly) or the last day of payment method (if paid every 03 months or every 06 months).
12. Establishment of Trade Union (if any)
Legal grounds: Article 6 of the 2012 Law on Trade Union.
Specific work: When you want to set up a trade union, employees in the business must have a campaign board for it. After that, they need to contact the superior trade union directly for guidance and assistance in establishing it.
Contact us for detailed advice on trade union establishment procedures.
13. Pay the monthly trade union fees
Legal grounds: Article 5 of Decree 191/2013 / ND-CP.
Specific work: Enterprises (including those that do not set up trade unions) must pay a union fee of 2% per month on the salary fund. This amount will serve as a basis for employees to pay social insurance premiums (one-time payment at the time of insurance payment).
The above are some necessary human resources work that every newly established enterprise must perform. Depending on the production and business conditions, each enterprise may have additional or reduced jobs as prescribed by law.