Does a director of a 100% state-owned enterprise have to report difficulties when implementing labor contracts??

Do employees hired as directors in 100% state-owned enterprises have to report difficulties encountered during the implementation of labor contracts?

1. What is a 100% state-owned enterprise?

Pursuant to Clause 1 and Clause 2, Article 88 of the Law on Enterprises 2020, the regulations on state-owned enterprises are as follows:

“Article 88. State-owned enterprises1. State-owned enterprises are organized and managed in the form of limited liability companies, Joint stock companies, including:a) Enterprises with 100% of charter capital held by the State;b) Enterprises with more than 50% of charter capital or total voting shares held by the State, except for enterprises specified in point a, Clause 1 of this Article.2. Enterprises with 100% of capital held by the State charter according to the provisions of Point a, Clause 1 of this Article includes:a) A single-member limited liability company with 100% charter capital held by the State that is the parent company of a state-owned economic group, parent company of a state-owned corporation, parent company in the group of parent companies – subsidiaries;b) Single-member limited liability company that is an independent company run by the State holds 100% of the charter capital.”

Thus, an enterprise with 100% charter capital held by the State (often called an enterprise with 100% state capital) is a state-owned enterprise, including a single-member limited liability company with 100% charter capital held by the State, which is the parent company of a state-owned economic group, the parent company of a state-owned corporation, and the parent company in the group of parent companies – Subsidiary companies and one-member limited liability companies are independent companies with 100% charter capital held by the State.

2. What standards and conditions must a Director of a 100% state-owned enterprise meet?

Pursuant to Article 101 of the Law on Enterprises 2020, which stipulates the standards and conditions of a Director of a 100% state-owned enterprise as follows:

– Not subject to the provisions of Clause 2, Article 17 of this Law.

– Have professional qualifications and experience in business administration or in the company’s field, industry or line of business.

– Not be a person related to the family of the head or deputy of the head of the owner’s representative agency; Member of the Board of Members, Chairman of the company; Deputy General Director, Deputy Director and Chief Accountant of the company; Company controller.

– Have never been dismissed as Chairman of the Board of Members, member of the Board of Members, Company President, Director or General Director, Deputy Director or Deputy General Director at the company or at another state-owned enterprise.

– Must not concurrently be Director or General Director of another enterprise.

– Standards, conditions different from the provisions of the company’s Charter.

3. Does a director in a 100% state-owned enterprise need to report difficulties in the process of performing work?

Pursuant to Article 5 of Decree 145/2020/ND-CP regulating the content of labor contracts for employees hired as directors in 100% state-owned enterprises as follows:

Labor contracts for for employees hired as directors in enterprises where the State holds 100% of the charter capital or the State holds more than 50% of the charter capital or the total number of shares with voting rights in Clause 4, Article 21 of the Labor Code, including the following main contents:

– Name and head office address of the enterprise according to the business registration certificate; full name, date of birth, Citizen Identification card number or ID card or passport, phone number, contact address of the Chairman of the Board of Members or the Company Chairman or the Chairman of the Board of Directors.

– Full name; date of birth; sex; nationality; training level; address of residence in Vietnam, address of residence abroad (for foreign workers); Citizen Identification card number or ID card or passport; phone number, contact address; Work permit number issued by a competent state authority or written confirmation that a work permit is not required; Other documents required by the employer (for foreign employees), if any, of the employee hired as a director.

– Jobs to be done, not to be done and obligations associated with the job performance results of the employee hired as a director.

– Work location of the employee hired as a director.

– The maximum term of the labor contract agreed by both parties must not exceed 36 months. For foreign workers hired as directors, the term of the labor contract must not exceed the term of the Work Permit issued by a competent state authority.

– Content, duration, and responsibility to protect business secrets and technological secrets of the enterprise for workers hired as directors and handle violations.

– Rights and obligations of the employer, including including:

+ Providing information for employees hired as directors to perform tasks;

+ Inspecting, supervising, and evaluating job performance of people hired as directors;

+ Rights and obligations according to the provisions of law;

+ Promulgating working regulations for directors director;

+ Fulfill obligations to employees hired as directors regarding: payment of salaries and bonuses; pay social insurance, health insurance, unemployment insurance; Equipped with means of work, travel, food, and accommodation; training and fostering;

+ Other rights and obligations agreed upon by both parties.

– Rights and obligations of employees hired as directors, including:

+ Carry out work according to the labor contract;

+ Report and propose solutions to handle difficulties and problems during the implementation process Perform work under labor contract;

+ Report on the management and use of capital, assets, labor and other resources;

+ Enjoy benefits regarding: salary, bonuses; working time, rest time; Equipped with means of work, travel, food, and accommodation; social insurance, health insurance, unemployment insurance; training and fostering; Other regimes agreed upon by both parties;

+ Other rights and obligations agreed upon by both parties.

– Conditions, processes, procedures for amending and supplementing labor contracts, unilaterally terminating labor contracts.

– Rights and obligations of employers and employees hired as directors upon termination of labor contracts labor.

– Labor discipline, material responsibility, resolution of labor disputes and complaints.

– Other contents agreed upon by both parties.

Thus, reporting and proposing solutions to handle difficulties and problems in the process of performing work under the labor contract is one of the contents of the rights and obligations of employees hired as directors. Accordingly, directors of 100% state-owned enterprises need to report difficulties during work performance.