Company Director Does a limited liability member have to sign a labor contract with the company?

1. Does the director of a single-member limited liability company have to sign a labor contract with the company?

According to Article 84 of the Law on Enterprises 2020, it is stipulated as follows:

“Article 84. Salaries, remunerations, bonuses and other benefits of company managers and Controllers

1. Company managers and Controllers Members are entitled to salaries, remunerations, bonuses and other benefits according to the company’s business results and efficiency.

2. The company owner decides on the salaries, remunerations, bonuses and other benefits of members of the Board of Members, the Company President and the Controllers. Salaries, remunerations, bonuses and other benefits of the company managers and Controllers are included in business expenses according to the provisions of law on corporate income tax and the law. relevant laws and must be shown in a separate section in the company’s annual financial report.

3. Salaries, remunerations, bonuses and other benefits of Controllers may be paid directly by the company owner according to the provisions of the company’s Charter.”

Accordingly, company managers and Controllers are entitled to salaries, remunerations, bonuses and other benefits according to business results and performance. of the company. Based on the concept and nature of salary, remuneration and regulations above, directors can receive salary or remuneration. If you receive a salary, sign a labor contract. If you receive remuneration, you do not need to sign a labor contract.

However, your company should sign a labor contract with the director to ensure the rights and obligations of the parties, because the director is the legal representative of the company and performs rights and obligations such as:

+ Organizing the implementation of resolutions and decisions of the Board of Members or the Chairman of the Company company;

+ Decide on issues related to the company’s daily business operations;

+ Organize the implementation of the company’s business plans and investment plans;

+ Promulgate the company’s internal management regulations;

+ Appoint, dismiss, dismiss company managers, except for positions under the authority of the Board of Members or President of the company;

+ Sign contracts on behalf of the company, except in cases falling under the authority of the Chairman of the Board of Members or President of the company;

+ Propose a plan for public organizational structure company;

+ Submit annual financial reports to the Board of Members or President of the company;

+ Recommend plans for using profits or handling losses in business;

+ Recruit labor;

+ Other rights and obligations specified in the company charter and labor contract dynamic.

To ensure the proper implementation of the above rights and obligations, there should be a labor contract to bind and resolve when there is a dispute or damage caused by a director’s violation, for example.

2. How are directors in a single-member limited liability company regulated?

According to Article 82 of the Law on Enterprises 2020, the company’s directors are regulated as follows:

– The Board of members or the President of the company appoints or hires a Director or General Director for a term of not more than 05 years to manage the company’s daily business activities. The Director or General Director is responsible before the law and the Board of Members or the President of the company for exercising their rights and obligations. The Chairman of the Board of Members, other members of the Board of Members or the President of the company may concurrently be the Director or General Director, unless otherwise prescribed by law or the Company’s Charter.

– The Director or General Director has the following rights and obligations:

+ Organize the implementation of resolutions and decisions of the Board of Members or the Chairman of the company company;

+ Decide on issues related to the company’s daily business operations;

+ Organize the implementation of the company’s business plans and investment plans;

+ Issue the company’s internal management regulations;

+ Appoint, dismiss, and dismiss company managers, except for officials names under the authority of the Board of Members or the President of the company;

+ Signing contracts on behalf of the company, except in cases under the authority of the Chairman of the Board of Members or the President of the company;

+ Proposing a plan for the company’s organizational structure;

+ Submit annual financial reports to the Board of Members or President of the company;

+ Propose plans for using profits or handling losses in business;

+ Recruit labor;

+ Other rights and obligations specified in the company charter and labor contract dynamic.

– The Director or General Director must have the following standards and conditions:

+ Not subject to the provisions of Clause 2, Article 17 of this Law;

+ Have professional qualifications and experience in business administration of the company and other conditions prescribed by the company’s Charter.

3. What are salaries and remunerations?

According to Article 90 of the 2019 Labor Code, it is stipulated as follows:

“Article 90. Wages

1. Wages are the amount of money that the employer pays the employee according to the agreement to perform the job, including the salary according to the job or title, salary allowances and other benefits. other supplements.

Accordingly, salary is the amount of money that an employer pays an employee according to an agreement to perform work, including salary according to job or title, salary allowances and other additional payments.

For remuneration, there are no specific regulations, however, it can be understood that remuneration is the amount of money paid when you complete the job, based on the volume and quality of work. working time or previous agreement where the remuneration is paid in accordance with the effort you put in.