Instructions for building reward and punishment regulations in enterprises

Article overview

Reward and punishment regulations in the company are an important tool to help maintain discipline, promote work productivity and motivate employees. Establishing clear regulations helps members of the organization understand expectations, thereby improving work efficiency, minimizing conflicts and building a fair working environment. This is also a way to help the company manage human resources effectively, ensuring sustainable development.

Regulations on rewards and punishments - Things to know when building
Regulations on rewards and punishments – Things to know when building

What are the reward and punishment regulations? The role of reward and punishment regulations in corporate governance

According to the provisions of Article 104 of the Labor Code 2019, there are regulations on bonus regulations, but there is no law that recognizes the concept of penalty regulations. However, from the content of Article 104, it can be understood that the reward and punishment regulations are documents that record the forms, criteria and levels of rewards or punishments for employees in the company when they complete their work well or commit violations.

Reward and punishment regulations play an important role in corporate governance because they help create a clear and fair working environment. Specifically, reward and punishment regulations help:

  • Encourage employees: Reasonable forms of reward will create strong motivation for employees to strive to achieve goals and improve work performance.
  • Ensuring compliance with rules: This regulation helps employees clearly understand the company’s regulations and rules and creates strict compliance, limiting violations.
  • Building company culture: A transparent reward and punishment system contributes to creating a positive working environment, where the efforts and efforts of each individual are properly recognized.
  • Effective management: Reasonable rewards and punishments help managers easily control employees’ behavior and performance, thereby making timely adjustment decisions.
  • Enhance fairness: Reward and punishment regulations help ensure fairness in treating employees, avoid favoritism and create a healthy competitive environment.

In short, reward and punishment regulations are an indispensable tool in maintaining order, improving productivity and building a team of loyal and responsible employees at work.

Principles for building reward and punishment regulations

Developing reward and punishment regulations is an internal matter of the enterprise, but it is necessary to pay attention to the following principles:

  • Ensure fairness and transparency in the application of rewards and penalties.
  • Comply with labor laws and relevant legal regulations.
  • The reward and punishment regulations must be consistent with the enterprise’s goals and development strategy.
  • Encourage creativity, innovation and outstanding efforts at work.
  • Flexible, can be adjusted to suit business and market changes.
  • Apply consistently and stably across the entire organization.
  • Positively motivate employees, encourage effective behavior and improve work performance.
  • Consult with the representative organization of workers at the facility.
  • Develop reward and punishment regulations with a clear evaluation framework.
Principles for building reward and punishment regulations
Principles for building reward and punishment regulations

Main contents of the enterprise’s reward and punishment regulations

Regulations on rewards and punishments in enterprises need to have clear and detailed main contents to ensure transparency, fairness and efficiency in human resource management. Basic contents include:

  • Purpose and principles of application: Regulations must clarify the purpose of encouraging employees and ensuring discipline, while stating the principles of fairness, transparency and objectivity.
  • Form of reward: Regulations need to clearly specify the forms of reward (money, in-kind, promotion, public commendation) and criteria for receiving rewards (fulfillment of targets, initiatives, excellent work).
  • Penalties: Regulations must stipulate penalties for violations (warning, fine, suspension, dismissal) and specific penalty levels.
  • Evaluation criteria: It is necessary to clearly stipulate evaluation criteria such as level of job completion, working attitude, and sense of responsibility to ensure objective reward/punishment decisions.
  • Implementation process: Regulations must indicate the process from detecting violations to handling, notifying decisions and resolving complaints.
  • Exceptions: The regulations should clearly state special situations where exceptions may apply, such as accidents or health problems.
  • Time of application and adjustment: It is necessary to determine the time of application and adjustment of regulations to suit business reality and changes in the law.
Some main contents of the enterprise's reward and punishment regulations
Some main contents of the enterprise’s reward and punishment regulations

Process of implementing and applying reward and punishment regulations

Regulations on rewards and punishments in enterprises will be developed by the employer, based on legal regulations and in consultation with employee representatives in the enterprise. After completion of construction, in order for the reward and punishment regulations to be implemented and applied in practice, businesses will need to take the following steps:

Step 1: Develop reward and punishment regulations

  • Determine goals: Reward and punishment regulations must clearly reflect the business’s goals, including encouraging employees to make efforts, comply with rules and maintain a positive working environment.
  • Set specific criteria: Criteria for evaluating work performance, work attitude, and sense of responsibility need to be clearly specified to avoid ambiguity in rewards and punishments.
  • Ensuring transparency and fairness: Regulations must be public and easy to understand, ensuring that all employees understand the regulations on rewards and penalties.

Step 2: Publicize the reward and punishment regulations

  • Notify all employees: After developing the regulations, businesses need to notify all employees about the reward and punishment regulations at the workplace.
  • Update internal documents: Regulations need to be clearly stated in internal documents and instructions so that employees can easily look up and understand.

Step 3: Evaluate and apply reward and punishment regulations

  • Periodically evaluate employees: Regulations on rewards and punishments need to be applied during performance evaluation periods. The established criteria will help leaders properly evaluate employees’ abilities and contributions.
  • Timely decision on rewards/punishments: Decisions on rewards or punishments need to be made quickly, transparently and fairly, to avoid causing difficulties for employees.

Step 4: Resolve complaints and adjustments

  • Listen to employee opinions: Enterprises need to have a complaint resolution process to ensure fairness and reasonableness in applying reward and punishment regulations.
  • Adjust regulations when necessary: ​​Periodically review and adjust reward and punishment regulations to suit reality and changes in the working environment or the law.

Consulting on building reward and punishment regulations in businesses in Long Phan

At Long Phan, we provide consulting services to build professional reward and punishment regulations, helping you create a transparent, effective and easy-to-implement human resources management system, thereby building a positive working environment.

Long Phan’s services include:

  • Consulting on building reward and punishment regulations suitable to business characteristics;
  • Analyze and evaluate the effectiveness of your current reward and punishment work;
  • Support the development of reward policies to encourage employees to achieve excellent achievements;
  • Consulting on designing appropriate forms of handling violations, ensuring fairness and transparency;
  • Support in drafting regulatory documents in accordance with business requirements;
  • Consulting on other related issues.

With a team of experienced experts, Long Phan is committed to providing optimal solutions for your business, helping to build a fair, transparent and motivating working environment. Please contact us immediately via the hotline 0906735386 to receive advice and implement services to build reward and punishment regulations in businesses in Long Phan, to bring long-term success to your company.