Are collective bargaining agreements effective on their conclusion date in Vietnam?
My company is drafting a collective bargaining agreement, after it is completed, I want to ask about the effective date of the collective labor agreement, will this agreement take effect from the conclusion date in Vietnam?
Are collective bargaining agreements effective on their conclusion date in Vietnam?
Pursuant to Clause 1, Article 78 of the 2019 Labor Code, effective date and effective period of collective bargaining agreements are as follows:
1. The effective date of a collective bargaining agreement shall be agreed upon by the parties and specified in the agreement itself. In case the parties do not agree upon an effective date, the collective bargaining agreement shall be effective on its conclusion date.
An effective collective bargaining agreement shall be upheld by the parties.
2. An enterprise-level effective collective bargaining agreement shall be binding on the employer and all employees of the enterprise. An effective sectoral or multi-level collective bargaining agreement shall be binding on all employers and employees of the participating enterprises.
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, in principle, the effective date of the collective labor agreement is agreed upon by the parties and recorded in the agreement. If the parties do not agree on an effective date, the collective labor agreement will take effect from the date of signing in Vietnam.
Best Regards!
