Vietnam: How much is the administrative penalty imposed upon the employer for implementing the collective bargaining agreement which has been declared invalid?
- When can the parties negotiate to extend the effective period of the collective bargaining agreement before the expiry of the collective bargaining agreement?
- How much is the administrative penalty imposed upon the employer for implementing the collective bargaining agreement which has been declared invalid?
- When can enterprises join sectoral collective bargaining agreements or multi-enterprise collective bargaining agreements in Vietnam?
When can the parties negotiate to extend the effective period of the collective bargaining agreement before the expiry of the collective bargaining agreement?
According to Clause 3, Article 78 of the 2019 Labor Code of Vietnam, the validity and duration of the collective labor agreement are as follows:
Effective date and effective period of collective bargaining agreements
…
3. The effective period of a collective bargaining agreement shall 01 – 03 years. The specific effective period shall be agreed upon by the parties and specified in the collective bargaining agreement. The parties may agree upon various effective periods for different parts of a collective bargaining agreement.
Thus, according to regulations, the effective period of a collective bargaining agreement shall 01 – 03 years. The specific effective period shall be agreed upon by the parties and specified in the collective bargaining agreement. The parties may agree upon various effective periods for different parts of a collective bargaining agreement.
At the same time, according to the provisions of Article 83 of the 2019 Labor Code of Vietnam on the expiry of collective bargaining agreements as follows:
Expiry of collective bargaining agreements
Within 90 days prior to the expiry date of a collective bargaining agreement, the parties may negotiate extension of the collective bargaining agreement or conclusion of a new collective bargaining agreement. In case the parties agree on an extension, a survey shall be carried out in accordance with Article 76 of this Labor Code.
Where the collective bargaining agreement expires while the negotiation process is still on-going, it shall continue to be effective for a maximum duration of 90 days from the expiry date, unless otherwise agreed by the parties.
Thus, within 90 days prior to the expiry date of a collective bargaining agreement, the parties may negotiate extension of the collective bargaining agreement or conclusion of a new collective bargaining agreement. In case the parties agree on an extension, a survey shall be carried out in accordance with Article 76 of this Labor Code.
Vietnam: How much is the administrative penalty imposed upon the employer for implementing the collective bargaining agreement which has been declared invalid? (Image from the Internet)
How much is the administrative penalty imposed upon the employer for implementing the collective bargaining agreement which has been declared invalid?
According to Article 86 of the 2019 Labor Code of Vietnam on invalid collective bargaining agreements as follows:
Invalid collective bargaining agreements in Vietnam
1. A collective bargaining agreement shall be partially invalid if one or some of its contents are contrary to the law.
2. A collective bargaining agreement shall be entirely invalid in any of the following circumstances:
a) The entire contents of the collective bargaining agreement are illegal;
b) The collective bargaining agreement was concluded by a person without due competence;
c) The procedures for negotiation and conclusion of the collective bargaining agreement were not followed.
At the same time, according to Clause 3, Article 16 of Decree No. 12/2022/ND-CP on violations against regulations on collective bargaining and Collective bargaining agreements as follows:
Violations against regulations on collective bargaining and Collective bargaining agreements in Vietnam
…
3. A fine ranging from VND 10,000,000 to VND 15,000,000 shall be imposed upon an employer for commission of one of the following violations:
a) Refusing to participate in the collective bargaining when receiving a request for collective bargaining;
b) Implementing the collective bargaining agreement which has been declared invalid;
c) Causing difficulties to, obstructing or interfering with the survey conducted by the representative organization of employees to collect employees’ opinions.
Thus, the employer who still implements the collective bargaining agreement which has been declared invalid can be administratively sanctioned up to VND 15,000,000.
When can enterprises join sectoral collective bargaining agreements or multi-enterprise collective bargaining agreements in Vietnam?
Pursuant to Article 85 of the 2019 Labor Code of Vietnam stipulating joining and withdrawing from a sectoral collective bargaining agreements or multi-enterprise collective bargaining agreements as follows:
Joining and withdrawing from a sectoral collective bargaining agreements or multi-enterprise collective bargaining agreements
1. An enterprise may join a sectoral or multi-level collective bargaining agreement when it is agreed by all employers and representative organizations of employees of the participating enterprises, except for the cases specified in Clause 1 Article 84 of this Labor Code.
2. An enterprise that is a member of a sectoral or multi-level collective bargaining agreement may withdraw from it when the withdrawal is agreed by all employers and representative organizations of employees of the participating enterprises, unless it is facing business difficulties.
3. The Government shall elaborate this Article.
Thus, an enterprise may join a sectoral or multi-level collective bargaining agreement when it is agreed by all employers and representative organizations of employees of the participating enterprises, except for the cases specified in Clause 1 Article 84 of this Labor Code.
LawNet
