Postponement of Trade Union Fee Payment Deadline for Enterprises with Order Reductions until December 31, 2023
Decision 7823/QD-TLD 2023 on postponement of union fee payment for enterprises with order reductions until December 31, 2023
On August 31, 2023, the Vietnam General Confederation of Labor issued Decision 7823/QD-TLD 2023 regarding the postponement of union fee payment for enterprises experiencing order reductions.
The content of Decision 7823/QD-TLD 2023 is as follows:
Article 1. Agree to allow enterprises with a reduction of 50% or more in social insurance-participating employees compared to January 01, 2023 (including employees ceasing work, temporarily suspending labor contracts, and agreeing on unpaid leave) due to order reductions to postpone their union fee payment until December 31, 2023.
Article 2. Assign the Standing Committee of the provincial and city Labor Federations; equivalent Central Agencies and Sectoral Unions; and the Labor Unions of Corporations under the General Confederation to review, determine and be responsible for deciding to allow enterprises experiencing order reductions to postpone their union fee payment until December 31, 2023, and report on the implementation of this Decision to the General Confederation (via the Finance Department) by January 31, 2024.
Article 3. The Finance Department of the General Confederation; the provincial and city Labor Federations; equivalent Central Agencies and Sectoral Unions and the Labor Unions of Corporations under the General Confederation are responsible for implementing this Decision./.
Thus, according to the above decision, enterprises experiencing a reduction of 50% or more in social insurance-participating employees compared to January 01, 2023 (including employees ceasing work, temporarily suspending labor contracts, and agreeing on unpaid leave) due to order reductions are allowed to postpone their union fee payment until December 31, 2023.
Additionally, the provincial and city Labor Federations; equivalent Central Agencies and Sectoral Unions; and the Labor Unions of Corporations under the General Confederation shall review, determine and be responsible for deciding to allow enterprises experiencing order reductions to postpone their union fee payment until December 31, 2023, and report on the implementation of this Decision to the General Confederation (via the Finance Department) by January 31, 2024.
Postponing union fee payment for enterprises experiencing order reductions until December 31, 2023
What are the methods for enterprises to pay the union fees?
According to Article 6 of Decree 191/2013/ND-CP regulating union fee payment methods:
Union fee payment methods
1. Agencies and units fully or partially funded by the state budget for regular operations shall pay union fees once a month at the same time as the mandatory social insurance payment for employees.
The State Treasury where the agency or unit has a transaction account shall, based on the paper drawing union fees, control expenditures and transfer money into the union organization's deposit account at the bank.
2. Organizations and enterprises shall pay union fees once a month at the same time as the mandatory social insurance payment for employees.
3. Agricultural, forestry, fishery, and salt industries that pay salaries based on the production cycle shall pay union fees monthly or quarterly at the same time as the mandatory social insurance payment for employees, based on registration with the union organization.
According to the above regulations, enterprises shall pay union fees once a month at the same time as the mandatory social insurance payment for employees.
In addition, agricultural, forestry, fishery, and salt industry organizations and enterprises that pay salaries based on the production cycle shall pay union fees monthly or quarterly at the same time as the mandatory social insurance payment for employees, based on registration with the union organization.
How is the union fee source for enterprises regulated?
Article 7 of Decree 191/2013/ND-CP regulates the union fee source as follows:
- For agencies and units fully funded by the state budget for regular operations, the state budget shall fully ensure the union fee source and allocate it in the annual regular expenditure estimates of the agency or unit according to the law on state budget management decentralization.
- For agencies and units partially funded by the state budget for regular operations, the state budget shall ensure the union fee source calculated based on the salary fund that serves as the basis for social insurance payment for the number of salaried staff from the state budget and allocate it in the annual regular expenditure estimates of the agency or unit according to the law on state budget management decentralization. The remaining union fee to be paid shall be ensured by the unit itself according to the provisions of Clauses 3 and 4, Article 7 of Decree 191/2013/ND-CP.
- For enterprises and units engaged in production, business, and services, the union fee to be paid shall be accounted into the production, business, and service costs of the period.
- For other agencies, organizations, and units, the union fee to be paid shall be sourced from the operating funds of the agency, organization, or unit in accordance with the law.
LawNet