Can the Company Dissolve the Trade Union When Downsizing?
Article 16 of the Vietnam Trade Union Charter 2013 stipulates:
- Conditions for establishing a grassroots Trade Union:
a. A grassroots Trade Union is the foundational organization of the Trade Union, established at agencies, organizations, enterprises when there are at least five Trade Union members or five employees who voluntarily apply to join the Vietnam Trade Union.
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- Grassroots Trade Unions, Unions that do not meet the conditions for existing and operating, the directly superior Trade Union shall consider and decide on dissolution.
And according to Clause 3, Article 26 of the Vietnam Trade Union Charter 2013:
The district Labor Federation decides on the establishment or dissolution and directly directs the district education Trade Union; decides to establish, dissolve, or recognize and directly directs the grassroots Trade Unions, Unions located in the area (except for those grassroots Trade Unions that are already directly under the province, city Labor Federation, or other directly superior grassroots Trade Unions).
Thus, if it is considered that the grassroots Trade Union is no longer eligible for existence and operation, the company can request the district Labor Federation to consider and decide the dissolution. In cases where the company no longer has 5 members (not meeting the membership conditions of the Trade Union), you can request the district Labor Federation to directly consider proceeding with the dissolution procedures for the company’s grassroots Trade Union.
The dissolution dossier for the Trade Union includes: Official Dispatch from the Board of Directors and the Executive Committee of the grassroots Trade Union sent to the Labor Federation regarding the proposal for dissolution.
In this case, due to the company reducing its workforce, there must be a workforce reduction declaration confirmed by the relevant authority. Costs and Union fees will be collected based on the company's monthly salary sheet.
Note: Regarding the payment of Trade Union fees
According to Article 4 of Decree 191/2013/ND-CP stipulates:
The subjects to pay Trade Union fees as stipulated in Clause 2, Article 26 of the Trade Union Law are agencies, organizations, enterprises regardless of whether these agencies, organizations, enterprises have or do not have a grassroots Trade Union organization.
This means that the payment of Trade Union fees will not depend on whether the enterprise has a grassroots Trade Union organization or not. Therefore, when the grassroots company is dissolved, the company is still responsible for paying Trade Union fees as stipulated.
Sincerely!
