Vietnam: What does the trade union finance include under the Trade Union Law 2012? What are the regulations on the management and use of trade union finance?
What does the trade union finance in Vietnam include under the Trade Union Law 2012?
Under Article 26 of the 2012 Trade Union Law, the trade union finance includes the following revenues:
- Trade union fee is paid by trade union members as prescribed in the Charter of Trade Union of Vietnam;
- Trade union funds are paid by agencies, organizations and enterprises in 2% salary funds based to pay social insurance for laborers;
- State budget allowances for assistance;
- Other revenues from activities of culture, sport, ecomomy of trade union; from projects, plans assigned by the State; from aid, funding of domestic and foreign organizations, and individuals.
What are the regulations on the management and use of trade union finance in Vietnam?
Authority to manage and use the trade union finance:
According to Article 27 of the 2012 Trade Union Law on the management and use of trade union finance in Vietnam:
- The trade unions shall manage and use trade union finance as prescribed by laws and provisions of the Vietnam General Confederation of Labour.
- trade union finance is used for activities that perform powers and duties of trade unions and maintain operation of trade union system, including the following missions:
+ Propagating, spreading, educating on lines, guidelines, policies of the Party, law of the State; improve professional level, professional skill for laborers;
+ Organizing activities that represent, protect legal and legitimate rights and interests of laborers;
+ Developing trade union members, establishing primary trade unions, making trade unions firm and strong;
+ Organizing emulation movements that are mobilized by trade union;
+ Traning, fostering trade union cadres; traning, fostering elite laborers to have source of cadres for the Party, the State and trade union organizations;
+ Organizing activities of culture, sport, travel serving laborers:
+ Organizing activities of gender and gender equality;
+ Visiting, caring, allowancing for trade union members and laborers upon getting sick, maternity, or difficulties; organizing other activities to care laborers;
+ Mobilizing, awarding laborers, children of laborers having record in studying and working;
+ Paying salary for full time trade union cadres; liablility allowance for part time trade union cadres;
+ Paying for operation of trade union machine at different levels;
+ Other paying missions.
Principles in management and use of trade union finance
Under Article 3 of Decree 191/2013/ND-CP on trade union finance, the principles in management and use of trade union finance arre specified as follows:
- trade unions shall implement management and use of trade union finance in accordance with the legislations and regulations of the Vietnam Confederation of Labor.
- The management and use of trade union finance must ensure the principles of concentration, democracy, publicity, transparency, having assignment and decentralization in management, in association with rights and duties of trade unions at all levels.
- Trade union organizations at all levels shall implement the work of accounting, statistics, report and finalization of trade union finance in accordance with law on accounting and statistics.
- trade union organizations which are assigned management and use of trade union finance may open accounts at State Treasuries so as to reflect amounts allocated for support from state budget; may open deposit accounts at banks so as to reflect revenues and expenditures from trade union fee in accordance with law on trade union.
- Ending of budget year, revenue source of trade union fee not yet used will be forwarded to next year for further use in accordance with regulations; for revenue source allocated for support from state budget, it will comply with provisions of Law on state budget and documents guiding law on closing budget books at the end of year.
What are the regulations on persons remitting trade union fees and fee rates thereof in Vietnam?
Persons remitting trade union fee:
Under Article 4 of Decree 191/2013/ND-CP, persons remitting trade union fees include:
Persons remitting trade union fee as prescribed at Clause 2 Article 26 of the 2012 Trade Union Law include agencies, organizations and enterprises, regardless of whether such agencies, organizations and enterprises has been had grassroots trade union organizations or not, comprising of:
(1) State agencies (including People’s Committees of communes, wards and townships), units of People’s armed forces.
(2) Political organizations, socio-political organizations, professional- socio-political organizations, social organizations, professional- social organizations.
(3) Public non-business units and non-public units.
(4) Enterprises of all economic sectors which are established and operate in accordance with Law on enterprises and Law in investment.
(5) Cooperatives and cooperative unions that are established and operate in accordance with Law on cooperatives.
(6) The foreign agencies and organizations, international organizations operating on Vietnam’s territory, related to organization and operation of trade union, executive offices of foreign parties in business cooperation contracts in Vietnam employing Vietnamese laborers.
(7) Other organizations employing laborers in accordance with law on labor.
Trade union fee rates:
Under Article 5 of Decree 191/2013/ND-CP, the remittance level of remitting trade union fee is prescribed as follows:
- The trade union fee rate shall be 2% of salary fund which are used as the basis for social insurance payment for employees. This salary fund shall be total salaries of employees under objects payable social insurance in accordance with law on social insurance.
Particularly for units of armed forces specified at Clause 1 Article 4 of Decree 191/2013/ND-CP, the salary fund means total salaries of national defense cadres, workers and public employees, employees working and enjoying salary in plants, enterprises, grassroots units of People's army; cadres, workers and public employees, employees working and enjoying salary in the science-technical, non-business and serving enterprises, agencies, units of People’s Public Security.
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