Nghiem Viet Anh and Vo Tuan Linh
Vision & Associates
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| National Assembly deputies press the button to pass the 2024 Law on Trade Unions Photo: Phuong Hoa/VNA |
On November 27, 2024, the National Assembly passed the Law on Trade Unions (the Law), which will take effect on July 1 this year and replace the 2012 Law on Trade Unions. In comparison with the 2012 version, the Law has a number of notable new provisions, particularly those on structure of and members’ rights in trade unions.
Members of trade unions
The Law allows for the first time foreign workers working in Vietnam under employment contracts with a term of 12 months or more to participate in trade union activities at grassroots trade unions in Vietnam.
According to the Charter of the Vietnam Trade Union, trade unions’ members have a number of following special rights: To be informed, discuss, propose and vote on the work of a trade union organization; to run for, nominate and elect the leadership of the trade union organization; to question trade union leaders; to propose disciplinary action against trade union leaders who commit violations; to be visited and assisted by the trade union organization when they are sick, in difficulty or in distress; to participate in cultural, sports, entertainment and tourism activities organized by the trade union organization; to be given priority in studying at schools and classes organized by the trade union organization; to be guided and assisted by the trade union organization in job seeking and learning; to be granted a trade union membership card and enjoy preferential treatment when using services from trade union institutions and other forms of trade union’s association and cooperation; to stop participating in trade union activities upon retirement, receive assistance from the grassroots trade union in retirement procedures and from the trade union of the locality where the employee resides; to participate in activities of the retirement club and the retirement liaison committee supported by the trade union; etc.
Finances of trade unions
Inheriting the provisions of the 2012 version, the Law states that the monthly trade union fee paid by trade union members will remain at 1 percent of the salary, while the fee paid by the employer will be maintained at 2 percent of the salary fund used as a basis for payment of compulsory social insurance premiums for employees of an enterprise. However, the Law grants exemption, reduction or suspension of trade union fee payment in certain cases. Firstly, enterprises, cooperatives and unions of cooperatives that are dissolved or bankrupt in accordance with law will be considered for exemption from the unpaid trade union fee. Secondly, enterprises, cooperatives and unions of cooperatives that face difficulties due to economic reasons or force majeure events will be considered for reduction of trade union fee payment level. In case an enterprise, a cooperative or a union of cooperatives encounters difficulties and has to suspend production and business activities, making it unable to pay trade union fee, it shall be considered for being allowed to suspend payment of trade union fee for up to 12 months.
The Law also provides that after the suspension period, the enterprise, cooperative or union of cooperatives shall continue to pay trade union fee and make a supplementary fee payment for that period. The deadline for the supplementary payment is the last day of the month following the month in which the suspension period ends. The amount to be additionally paid is equal to the amount payable for the months of the suspension period. It should be noted that the Government shall reach agreement with the Vietnam General Confederation of Labor on regulations on exemption from, or reduction and suspension of payment of, trade union dues.
Organizational structure of trade unions
Developed from the provisions of the Charter of the Vietnam Trade Union, the Law defines “grassroots professional association” as a grassroots organization of the Vietnam Trade Union, gathering workers without industrial relations in the same industry/profession or other specific workers, recognized by the immediate superior trade union under regulations and the Charter of the Vietnam Trade Union. The Law adds grassroots professional associations to the organizational system of the Vietnam Trade Union, clearly stating that the Vietnam Trade Union is a unified organization consisting of four levels, specifically as follows:
(i) The Vietnam General Confederation of Labor is the central-level entity;
(ii) Provincial-level trade unions and trade unions of central sectors and the equivalent include provincial-level labor federations; trade unions of central sectors; trade unions of economic groups; and trade unions of corporations under the Vietnam General Confederation of Labor;
(iii) Immediate superior trade unions of grassroots trade unions include district-level labor federations; trade unions of local sectors; trade unions of economic groups and corporations other than those mentioned at item (ii) above; trade unions of industrial parks, export processing zones, economic zones and hi-tech parks; and other immediate superior trade unions of grassroots trade unions as provided in the Charter of the Vietnam Trade Union; and,
(iv) Grassroots-level trade unions include grassroots trade unions and grassroots professional associations.
The Law affirms that the Vietnam General Confederation of Labor is the sole representative organization of workers at the national level in industrial relations.
It should be noted that the organizational structure of the Vietnam Trade Union mentioned above does not include the organizations of workers and employers mentioned in the new-generation free trade agreements that Vietnam has recently signed, typically the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the European Union-Vietnam Free Trade Agreement. The common point of these agreements is that Vietnam commits to respect, promote and effectively implement the principles of fundamental rights at work, in accordance with its obligations under the International Labor Organization (ILO) and the ILO Declaration on Fundamental Principles and Rights at Work and subsequent actions. Vietnam has ratified seven out of eight relevant ILO fundamental conventions and is expected (should have done so by October 2024) to ratify Convention No. 87 on Freedom of Association and Protection of the Right to Organize Convention.
Rights and responsibilities of trade unions toward employees in units having no employees’ representative organization
The Law stipulates that in a unit having no employees’ representative organization, the trade union has the right and responsibility to represent, and protect the lawful rights and interests of, employees when requested by employees (similar to the 2012 Law on Trade Unions), and in case the trade union discovers that the employer shows signs of infringing upon the lawful rights and interests of employees, except cases of organization of dialogues at the workplace and collective bargaining, which must comply with the labor law.
Guarantees for trade union members, organizations and activities
The Law clarifies prohibited acts in trade union activities, such as practicing discrimination against employees and trade union leaders for the reasons of establishing or participating in trade union activities. This includes the following acts:
(i) Requesting to join, not to join or leave the Vietnam Trade Union in order to be recruited, enter into or extend an employment contract or work contract;
(ii) Dismissing, applying disciplinary measures, or unilaterally terminating an employment contract or work contract; not continuing to enter into or extend an employment contract or work contract; transferring employees to other jobs;
(iii) Practicing discrimination in terms of wage, bonus, welfare, working hours, other rights and obligations in labor;
(iv) Practicing stigma or discrimination based on gender, ethnicity, religion or belief and practicing other discrimination acts in labor;
(v) Providing false information to undermine the prestige and honor of trade union leaders;
(vi) Promising or providing material or non-material benefits so that employees or trade union leaders do not participate in trade union activities, stop acting as trade union leaders, or acting against trade unions;
(vii) Dominating, obstructing or causing difficulties related to work in order to weaken trade union activities; and other acts as provided for by law.
The Law also prohibits the use of economic measures or other measures that are detrimental to trade unions as provided for in the 2012 Law on Trade Unions. It also bans using mental threats; interfering with or manipulating the process of establishing and operating trade unions, weakening or invalidating the implementation of the functions, tasks, rights and responsibilities of trade unions.
The Law retains the provisions of the 2012 version regarding the responsibility of the trade union, saying that in case the employer terminates the employment contract or work contract with an employee who is a part-time trade union leader, forces the employee to quit or illegally dismisses him, the trade union will have to request the competent state agency to intervene or the legal representative to initiate a labor lawsuit at the court to protect the lawful rights and interests of the trade union leader, unless the trade union leader refuses.
Furthermore, the Law also allows part-time trade union leaders to receive support from trade unions for finding new jobs in case they cannot return to their former jobs, and, during the period of job interruption, they will be entitled to financial support from trade unions under regulations of the Vietnam General Confederation of Labor.-
