A reasonable reward and punishment in a company can encourage employees to work hard and at the same time ensure compliance with rules and regulations. However, building effective rewards and punishments in businesses is not simple. In this article, Viindoo will share with readers the necessary information to build a reasonable punishment and reward regime to help businesses operate effectively.
1. The latest form of reward and punishment regulations in the company
Sample regulations on reward and punishment in the company The latest technology provides businesses with a legal framework to deal with labor violations and encourages employees to do their jobs well. Readers can refer to a sample of the company's fines and bonuses below:
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2. Bonus regulations in the company
In a company, the bonus policy is put in place to motivate and reward employees for a job well done. Bonus methods include bonuses, welfare regimes and salaries. However, the bonus regulation must be established in a fair and transparent manner to avoid causing conflicts among employees. Find out more details in the section below.
2.1 Salary Regulations
The classification of wages according to many forms of labor will help management more effectively. Salary categories include:
- Basic salary: The basic salary to be paid to employees who complete the work according to the agreed contract. The main salary is not lower than the regional minimum wage of the state.
- Salary paid for social insurance: Calculated based on the salary to calculate the insurance amount that individuals have to pay monthly.
- Probationary salary: Usually accounts for about 85% of the main salary. However, some businesses do not pay probationary wages if experienced personnel do well.
- Package salary: Calculated based on contract with individuals.
- Product salary: Calculated based on the quantity and quality of products achieved by employees.
The classification of wages according to many forms of labor will make management easier and motivate employees to complete their work well.
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2.2 Regulations on leave, holidays, Tet and welfare regimes
In addition to the main salary and allowances, the employees may also receive additional money or gifts on special occasions every year such as:
- New Year
- Lunar New Year
- National Day 2/9
- International Labor Day 1/5
- International Children's Day 1/6
- Vietnamese Women's Day 20/10 and International Women's Day 8/3
- Weddings, weddings, birthdays, and events such as the death of a loved one, employee illness, birth, or accident.
- In addition, employees are entitled to a vacation once a year, and other benefits may vary depending on the culture of each business or the product that the business operates.
2.3 Other bonus rules
To motivate and encourage employees to work hard and be productive, businesses need to apply a clear reward system. Bonus regulations are often designed in detail and professionally to ensure fairness and transparency.
Types of bonuses include: good initiative bonus, personal revenue bonus, commission, good labor bonus and many other forms. The rewards can be cash, certificates of merit, coupons for using the company's services, rank increases, salary increases and other rewards.
The application of an appropriate bonus system not only motivates employees but also helps to improve the performance of the entire organization. At the same time, this also shows the concern and appreciation of the business for the dedication and achievements of employees.
In addition, businesses can check out the article "Remuneration for employees to retain talents” for reference on how to develop employee compensation regimes to better support bonus regulations.
3. Penalty regulations in the company
In addition to the bonus regulations to encourage and motivate employees, enterprises also need to introduce punishment regulations to ensure work performance. Penalties can apply directly to an employee's salary, material compensation, salary downgrade/grade and even dismissal. This helps to create a professional and disciplined working environment.
In order to improve the production and business efficiency of enterprises, the reward and punishment regulations used include: penalties for being late to work, penalties for awareness and attitude, penalties for professional ethics, discipline and responsibility in the work. The application of these penalties will help employees comply with the rules, preserve the company's reputation and avoid mistakes at work.
Some acts of violating the code of ethics, manners and professional principles of employees in the company, along with corresponding penalties are as follows:
- The first behavior is related to uniform style, communication attitude and labor security. Employees who fail to comply with these regulations may be warned or fined from VND 20,000 to VND 100,000.
- The second behavior is related to working time and self-management of work. Acts of being late, leaving early or skipping shifts without a valid reason may result in a warning or a fine ranging from VND 20,000 to VND 100,000. While more serious acts can lead to forced dismissal.
- The third is a violation of ethics and the law, including loss, damage to the common property of the company or customers, misappropriation of property, theft, embezzlement or bribery. Employees who engage in this behavior may be forced to pay compensation or be fired, depending on the extent of the damage caused.
- The fourth behavior is related to ethics and reputation, including using fake documents, not reporting to the company when entering into a contract or on duty, hitting people or disclosing inside information to the detriment of the company. company. Employees who engage in this behavior may also be fired or compensated, depending on the extent of the damage caused.
- The fifth act is related to superiors directing subordinates to violate regulations. These circumstances can lead to dismissal and forced compensation depending on the extent of the damage. The company will also report to the authorities for legal handling if necessary.
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4. How to build an effective reward and punishment policy in the company
The reward and punishment regulation is one of the important factors to help maintain and improve labor productivity, working style and professional ethics in the company. To build a bonus and punishment regulations in the company effectively, businesses can refer to the following 7 steps:
4.1 Step 1: Consult the laws and legal bases
To create an accurate and effective compensation policy, you can refer to the documents below. These documents will help in the construction the company's reward, punishment policy become more precise and efficient.
- Official Letter 4320/LDTBXH-TL of the Ministry of Labour, Invalids and Social Affairs: providing guidance on the salary payment process for SOEs.
- Decree 49/2013/ND-CP: detailing the implementation of regulations related to salary and bonus policy.
- Decree No. 52/2016/ND-CP regulating salary, bonus and remuneration. Applies to managers of single-member limited liability enterprises in which 100% of charter capital is held by the State.
4.2 Step 2: Set up a council to develop reward and punishment regulations
The Regulations Committee was established to ensure transparency and community participation in developing effective reward, punishment regulations. To ensure openness and democracy, the members of the Regulation Board must include: Chairman of the Board of Directors, permanent members and other members. The task of the Regulation Board is to draft the salary and bonus regulations and collect the opinions of employees in the enterprise to perfect the regulations in the most perfect way.
4.3 Step 3: Get opinions from employees and compare with the general labor market
It is important to get input from employees and compare them with the general labor market to ensure regulations on reward - punishment in the company fair and reasonable. Enterprises need to collect opinions of employees in the enterprise and compare it with the external labor market to make decisions on salary adjustment - reasonable sanction.
This step will help build an objective, fair, respectful, and goodwill policy for long-term cooperation from businesses. If the compensation policy is not reasonable, it will affect work morale and may be the leading reason for employees to leave. Therefore, this is an irreducible step to ensure long-term cooperation for both businesses and employees.
4.4 Step 4: Determine how to reward and punish employees appropriately
To ensure transparency, the HR department needs to determine how, when, and how to pay wages. In particular, special cases such as employees sent by the company for professional training, overtime, maternity leave for female employees, funeral leave - weddings need to be specified and clearly defined. Only then can the company build a fair and effective compensation policy.
4.5 Step 5: Build a clear reward evaluation framework
An enterprise, the design of reward, punishment regulations is also very important. The rules are set up to raise employee morale, helping them to become more disciplined. These rewards and penalties will be determined based on the business industry and corporate culture of the organization. The implementation of a reasonable reward and punishment regime will help businesses maintain a positive and motivating working environment and increase labor productivity.
4.6 Step 6: Put it into practice
To ensure the effectiveness of the created regulations, enterprises need to conduct the compilation in a concise, clear and easy to understand manner. After that, this regulation must be widely publicized in the enterprise. The human resources department is tasked with gathering employee input to ensure its suitability and expectations. The policy should also answer questions for employees and supervisors to ensure transparency and fairness.
4.7 Step 7: Conduct evaluation and improvement
Evaluation and improvement bonus and punishment regulations in the company is necessary to ensure the effectiveness of the regulation. By providing clear and objective regulations, businesses can help employees better understand the evaluation criteria and the results achieved. At the same time, the improvement regulations on reward and punishment of employees in the company It also helps to increase discipline and improve work quality.
5. Necessary requirements of an effective and fair reward and punishment regulation
When developing a template for employee compensation, fines and allowances, the provisions need to adhere to a number of important criteria to ensure their rationality and practicality. This includes being consistent with the characteristics of labor and employees of each enterprise, and needs to be clear, transparent and detailed in each provision. In addition, the regulations also need to be clearly disseminated and detailed instructions to ensure that employees understand the principles and rules in the regulation.
6. Legal provisions on reward and punishment regulations
The application of the reward-punishment regulation with the support of the law helps to increase transparency and fairness in the treatment of employees. Many provisions in the Labor Law and other related documents below also detail the establishment and application of reward, punishment regulations in enterprises.
6.1 Legal provisions on bonus regulations
In the 2019 Labor Code, the concept of bonus is defined as money, property or other forms that businesses give to employees. The bonus level is based on the production/business results and the job completion level of each employee. Important things to note in the law include:
- Reward is one of the measures applied to encourage employees to successfully complete the assigned work.
- It is necessary to consult the workers' representative organization on the content of the provisions.
- Regulations must be published throughout the company so that everyone can understand and obey.
6.2 Laws on fines
In the company, labor rules are something that every employee must follow. If they do not comply, they will be disciplined. To learn about the company's reward, punishment policy, leaders and personnel need to know the following, quoted from the 2019 labor code:
- Employers must prove an employee's fault before disciplinary action can be taken.
- When disciplinary action is taken, the participation of the labor representative organization at the establishment is required.
- Workers are required to be present at the hearing and have the right to defend themselves.
Disciplinary action must be recorded and kept in the minutes.
- If the matter has many complicated circumstances, the employee may be suspended from work for a period not exceeding 15 days or up to 90 days in some special cases.
- The Code also lists cases where workers were not disciplined.
Why is it essential for a company to have reward and punishment regulations?
Reward, punishment regulations are crucial for maintaining discipline, fostering a positive work culture, and promoting fairness within a company. They provide clear guidelines for recognizing and incentivizing exceptional performance while discouraging misconduct or underperformance.
What can I expect to find in the latest sample of reward & punishment regulations?
The latest sample of reward, punishment regulations will outline the company's policies and procedures related to rewards and punishments. It will include details on performance evaluation criteria, types of rewards and punishments, the process of review and approval, and any updates or changes made to the regulations.
Are the reward, punishment regulations specific to certain departments or applicable company-wide?
The applicability of reward and punishment regulations can vary from company to company. In some cases, they may be specific to certain departments or job roles, while in others, they may apply company-wide. It is essential to consult the specific document to determine its scope within your organization.
How do reward, punishment regulations contribute to a positive work environment?
Reward and punishment regulations contribute to a positive work environment by establishing clear expectations and consequences. When employees understand the rewards and punishments associated with their performance, it fosters transparency, accountability, and fairness, which in turn promotes a healthy and motivating work culture.
Are reward and punishment regulations a substitute for effective management and leadership?
No, reward and punishment regulations are not a substitute for effective management and leadership. While regulations provide a framework, it is the responsibility of managers and leaders to implement these policies consistently, provide guidance and feedback, and foster an environment where employees feel valued and motivated to perform their best. Effective management and leadership complement reward and punishment regulations to create a harmonious work environment.
Above is the information of Viindoo about bonus and punishment regulations in the company that everyone needs to know. Understanding this regulation will help the company's leaders and personnel to apply it more fairly and effectively. At the same time, effectively applying the regulations on reward and punishment in the company also helps to increase work productivity, motivate employees and reduce risks in human resource management.
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