What is the collective bargaining agreement in Vietnam? If there is no trade union at grassroots level, is it mandatory to build a collective bargaining agreement?

Main Content

• What is the collective bargaining agreement in Vietnam?
• If there is no trade union at grassroots level, is it mandatory to build a collective bargaining agreement?
• In which case is the collective bargaining agreement invalid?

What is the collective bargaining agreement in Vietnam?

Pursuant to Article 75 of the 2019 Labor Code of Vietnam stipulating collective bargaining agreements in Vietnam as follows:

- A collective bargaining agreement means an agreement that is reached through collective bargaining and concluded in writing by the parties.

- Collective bargaining agreements include enterprise-level collective bargaining agreements, sectoral collective bargaining agreements, multi-enterprise collective bargaining agreements and other types of collective bargaining agreements.

- The contents of a collective bargaining agreement must not be contrary to the law, and should provide for the terms and conditions that are more favorable to the employees than those provided by law.

What is the collective bargaining agreement in Vietnam? If there is no trade union at grassroots level, is it mandatory to build a collective bargaining agreement?

If there is no trade union at grassroots level, is it mandatory to build a collective bargaining agreement?

Pursuant to the provisions of Clause 1, Article 75 of the 2019 Labor Code of Vietnam and Article 76 of the 2019 Labor Code of Vietnam:

Article 75. Collective bargaining agreements

1. A collective bargaining agreement means an agreement that is reached through a collective bargaining and concluded in writing by the parties.

Collective bargaining agreements include enterprise-level collective bargaining agreements, sectoral collective bargaining agreements, multi-enterprise collective bargaining agreements and other types of collective bargaining agreements.

…

Article 76. Survey and conclusion of collective bargaining agreements

1. Before an enterprise-level collective bargaining agreement is concluded, its draft must be made available for comment by all employees of the enterprise. An enterprise-level collective bargaining agreement shall only be concluded if it is voted for by more than 50% of the enterprise’s employees.

2. A sectoral collective bargaining agreement shall be available for comment by all members of the management boards of the representative organizations of employees of the enterprises participating in the bargaining. A sectoral collective bargaining agreement shall only be concluded if it is voted for by more than 50% of the voters.

A multi-enterprise collective bargaining agreement shall be available for comment by all employees of the enterprises participating in the bargaining or members of management boards of the representative organizations of employees thereof. Only an enterprise more than 50% of employees of which vote for the multi-enterprise collective bargaining agreement may participate in its conclusion.

3. The time and location for casting votes on a draft collective bargaining agreement shall be decided by the representative organization of employees as long as it does not affect the participating enterprises’ normal business operation. The employers must not obstruct or interfere with process of voting on the draft agreement by the representative organizations of employees.

4. A collective bargaining agreement shall be concluded by legal representatives of the parties.

In case a multi-enterprise collective bargaining agreement is negotiated via a collective bargaining council, it shall be concluded by the chairperson of the council and legal representatives of the parties.

5. A copy of the collective bargaining agreement shall be sent to every party and the provincial labor authority in accordance with Article 77 of this Labor Code.

In case of a sectoral or multi-enterprise collective bargaining agreement, each employer and representative organization of employees of the participating enterprises shall receive 01 copy.

6. After a collective bargaining agreement is concluded, the employer must make publicly available to their employees.

7. The Government shall elaborate this Article.

Thus, the collective bargaining agreement is concluded based on the agreement and signed in writing if it is voted for by more than 50% of employees in the enterprise, members of the management boards of the representative organizations of employees. Collective bargaining agreements are optional.

When the parties reaching a collective bargaining agreement in case of being voted for by more than 50% of the voters, the enterprise's collective bargaining agreement is concluded. Therefore, whether there is a trade union at grassroots level or not is not a condition for concluding a collective bargaining agreement.

In which case is the collective bargaining agreement invalid?

According to Article 86 of the 2019 Labor Code of Vietnam stipulating the invalid collective bargaining agreements as follows:

- A collective bargaining agreement shall be partially invalid if one or some of its contents are contrary to the law.

- A collective bargaining agreement shall be entirely invalid in any of the following circumstances:

+ The entire contents of the collective bargaining agreement are illegal;

+ The collective bargaining agreement was concluded by a person without due competence;

+ The procedures for negotiation and conclusion of the collective bargaining agreement were not followed.