Postponement of union dues for businesses with a reduction of 50% or more of employees in Vietnam

Postponement of union dues for businesses with a reduction of 50% or more of employees in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

Postponement of union dues for businesses with a reduction of 50% or more of employees in Vietnam

On August 31, 2023, the Vietnam General Confederation of Labor issued Decision 7823/QD-TLD on delaying union dues for enterprises whose orders are cut or reduced.

Specifically, the General Confederation agrees to allow businesses with a reduction of 50% or more of their employees to participate in social insurance compared to January 1, 2023 (including workers who stop working, temporarily postpone the implementation of labor contracts, and agree to take unpaid leave) due to businesses being cut off or reducing orders to postpone the payment of union fees until December 31, 2023.

At the same time, the Standing Committee of the Provincial and City Labor Confederations; Central industry union and equivalent; The Corporation's Trade Union under the General Confederation shall consider, determine, and be responsible for deciding whether businesses that cut or reduce orders will defer union fee payment until December 31, 2023, and report the implementation of this Decision to the General Confederation (through the Finance Committee) before January 31, 2024.

Subjects of remitting trade-union fee in Vietnam 2023

Subjects of remitting trade-union fee as prescribed at Clause 2, Article 26 of the Law on Trade Union 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 which 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.

(Article 4 of Decree 191/2013/ND-CP)

Sources for remitting trade-union fee in Vietnam 2023

Specifically, Article 7 of Decree 191/2013/ND-CP stipulates the source of trade union fees as follows:

- For agencies and units which are ensured whole regular operation funding from state budget, state budget shall ensure whole source for remitting trade-union fee and allocated in annual estimate of regular expenditures of agencies and units as prescribed by law on decentralization in management of state budget.

- For agencies and units which are ensured partly regular operation funding from state budget, state budget shall ensure source for remitting trade-union fee calculated under the salary fund used as the basis for social insurance payment for number of payroll enjoyed salaries from state budget and allocated in annual estimate of regular expenditures of agencies and units as prescribed by law on decentralization in management of state budget.

The remaining trade-union fee, units shall self-ensure as prescribed at Clauses 3 and 4 of Article 7 of Decree 191/2013/ND-CP.

- For enterprises and units operating production and trading, providing services, amounts to remit trade-union fee shall be accounted into cost for production, trading and supplying services in the period.

- For remaining agencies, organizations and units, amounts to remit trade-union fee shall be used from their sources of operational funding as prescribed by law.

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