After completing business registration procedures and filing the first tax return, businesses should not rush into operations immediately but must first complete the necessary government procedures for the Human Resources department, specifically regarding labor, wages, and social insurance.
Accordingly, newly established businesses need to strictly implement the following Labor and Wage Management tasks to begin managing and utilizing their workforce.
1. Establish a Labor Management Register
Within 30 days of commencing operations, businesses must establish a Labor Management Register at their headquarters, branches, and representative offices.
Businesses are responsible for recording and entering complete information about employees when the employment contract is in effect and updating the information in the Labor Management Register whenever there are changes.
2. Develop salary scales and payrolls.
Businesses must establish their own salary scales and wage tables. This serves as the basis for recruitment, employment, negotiating salary levels in labor contracts, and paying wages to employees.
3. Develop written labor regulations.
Businesses employing 10 or more workers must have written labor regulations.
Within 10 days of issuing the Labor Regulations, the enterprise must submit one set of registration documents for the Labor Regulations to the Department of Labor, War Invalids and Social Affairs (hereinafter referred to as the Department of LIS) where the enterprise is headquartered.
4. Declare the use of machinery, equipment, and materials that require strict occupational safety standards (if any).
Businesses must select a qualified occupational safety inspection organization to conduct the initial inspection before putting into use machinery, equipment, and materials that require strict occupational safety standards – as specified in the List of Machinery, Equipment, and Materials Requiring Strict Occupational Safety Standards issued with Circular 53/2016/TT-BLDTBXH.
5. Concluding an employment contract
Businesses must enter into written employment contracts with each employee, with each party retaining one copy; except for temporary jobs with a duration of less than 3 months, in which case the parties may enter into oral employment contracts.
6. Register for a personal income tax identification number (if you don't already have one)
Businesses that pay salaries and wages are responsible for deducting tax before paying income to individuals if the income reaches the taxable threshold. Individuals who already have a tax identification number should provide it to the business; if they do not, individuals can register for a tax identification number themselves and provide it to the business, or authorize the business to register on their behalf.
7. Registering for Social Insurance, Health Insurance, and Unemployment Insurance for the first time.
Employees working under indefinite-term employment contracts, fixed-term employment contracts, seasonal employment contracts, or contracts for a specific job with a duration of at least 03 months but less than 12 months, including those under 15 years of age, are required to participate in social insurance, health insurance, and unemployment insurance.
Businesses employing workers who are subject to social insurance, health insurance, and unemployment insurance are responsible for registering their employees for these insurance schemes when signing employment contracts.
8. Monthly deductions for social insurance, health insurance, and unemployment insurance contributions.
After registering employees for social insurance (BHXH), health insurance (BHYT), and unemployment insurance (BHTN), businesses are responsible for deducting and paying BHXH, BHYT, and BHTN contributions monthly to the insurance agency.
9. Deduct and remit monthly trade union fees.
Every month, when businesses pay mandatory social insurance contributions for their employees, they must also pay trade union fees. This is an obligation of the business, regardless of whether or not it has a trade union organization.
Above are 09 labor and wage-related tasks that businesses need to perform when they are newly established.
