Law on Trade Unions 2024 promulgated in Vietnam? Which entities are exempt, reduced, or suspended from trade union fee contributions in Vietnam from July 1, 2025?
Law on Trade Unions 2024 promulgated in Vietnam?
On November 27, 2024, the National Assembly passed the Law on Trade Unions 2024. The Law on Trade Unions 2024 comprises 6 chapters, 37 Articles (increased by 4 articles compared to the current Law), and is effective from July 1, 2025.
Thus, the Law on Trade Unions 2024 has officially been enacted and will be applicable from July 1, 2025.
* The Law on Trade Unions 2024 introduces some new points compared to the Law on Trade Unions 2012 as follows:
(1) Foreign workers can join the Vietnamese Trade Union
Based on Clause 2, Article 5 of the Law on Trade Unions 2024, it is stipulated that foreign nationals working in Vietnam under labor contracts with a term of 12 months or more can join and engage in trade union activities at grassroots trade unions.
(2) Clearly define the four levels of trade unions
Identification and clear distinction of “Vietnamese Trade Union” from the “Vietnam General Confederation of Labor”, with detailed stipulations on 04 levels of trade unions. Additionally, affirm that “The Vietnamese Trade Union is the sole national representative organization of employees in labor relations”.
(3) Supplement the right of social supervision and criticism for Trade Unions
According to Articles 16 and 17 of the Law on Trade Unions 2024, supervision by Trade Unions includes participation in supervision with competent state agencies and leading supervisory activities. Trade Unions have the right and responsibility to participate in providing opinions and social criticism on draft legal documents, plans, programs, projects, and proposals of state agencies directly related to the rights and interests of trade union members and employees.
(4) Add exemptions, reductions, and temporary suspension cases for trade union fee contributions
Add cases for exemption, reduction, and temporary suspension of trade union fee contributions, and the Government of Vietnam will stipulate these cases after reaching an agreement with the Vietnam General Confederation of Labor as per Article 30 of the Law on Trade Unions 2024.
(5) Maintain the trade union fee contribution rate of 2%
Continue to maintain the trade union fee contribution rate at 2%, while also amending and supplementing regulations to clarify the principles of managing and using trade union finances, as well as amending and supplementing the spending tasks of trade union finances.
Law on Trade Unions 2024 promulgated in Vietnam? Which entities are exempt, reduced, or suspended from trade union fee contributions in Vietnam from July 1, 2025? (Image from Internet)
Which entities are exempt, reduced, or suspended from trade union fee contributions in Vietnam from July 1, 2025?
According to Article 30 of the Law on Trade Unions 2024, the entities that are exempt, reduced, or allowed to suspend trade union fee contributions from July 1, 2025, include:
- Enterprises, cooperatives, and cooperative unions undergoing dissolution or bankruptcy according to the law shall be considered for exemption from unpaid trade union fee contributions.
- Enterprises, cooperatives, and cooperative unions facing difficulties due to economic reasons or force majeure shall be considered for a reduction in trade union fee contributions.
- In cases where enterprises, cooperatives, and cooperative unions face difficulties leading to production and business suspension, and an inability to contribute to trade union fees, they shall be considered for temporary suspension of trade union fee contributions for a period not exceeding 12 months.
After the temporary suspension period, enterprises, cooperatives, and cooperative unions must resume paying trade union fees and make up for the unpaid fees during the suspension period. The deadline for making up fees is the last day of the month following the month in which the suspension ends. The amount to be made up shall equal the amount due for the months of suspension.
- The Government of Vietnam, in agreement with the Vietnam General Confederation of Labor, will stipulate the exemption, reduction, and temporary suspension of trade union fee contributions and detail other contents of Article 30 of the Law on Trade Unions 2024.
What are regulations on management, use, and exploitation of trade union assets in Vietnam?
According to Article 32 of the Law on Trade Unions 2024, it is stipulated as follows:
Trade Union Assets
- Assets formed from the contributions of trade union members; trade union funds; trade union finances; assets assigned by the State in kind; assets invested, constructed, purchased from the state budget, and other sources compliant with legal provisions are assets of the Trade Union.
- The management, use, and exploitation of trade union assets are carried out as follows:
a) The management, use, and exploitation of trade union assets at the Vietnam General Confederation of Labor, provincial labor unions; central industry unions and equivalents; district labor unions; local industry unions; economic corporation unions; corporation trade unions; trade unions of industrial zones, export processing zones, economic zones, high-tech zones; public service providers of the Trade Union; enterprises where the Trade Union holds 100% charter capital, enterprises where the Trade Union holds over 50% charter capital or total voting shares are in accordance with the laws on the management and use of public assets and other relevant laws;
b) The management, use, and exploitation of trade union assets not under the stipulations in point a of this clause are carried out following relevant legal provisions and regulations of the Vietnam General Confederation of Labor.
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Thus, the management, use, and exploitation of trade union assets are carried out as follows:
- The management, use, and exploitation of trade union assets at the Vietnam General Confederation of Labor, provincial labor unions; central industry unions and equivalents; district labor unions; local industry unions; economic corporation unions; corporation trade unions; trade unions of industrial zones, export processing zones, economic zones, high-tech zones; public service providers of the Trade Union; enterprises where the Trade Union holds 100% charter capital, enterprises where the Trade Union holds over 50% charter capital or total voting shares are in accordance with the laws on the management and use of public assets and other relevant laws;
- The management, use, and exploitation of trade union assets not stipulated in point a, clause 2, Article 32 of the Law on Trade Unions 2024 are carried out following relevant legal provisions and regulations of the Vietnam General Confederation of Labor.
