Competence and procedures for settling interest-based collective labor disputes in Vietnam

Who has the competence to settle interest-based collective labor disputes in Vietnam? And what are the procedures regarding this matter? – Thai Anh (Gia Lai, Vietnam)


Competence and procedures for settling interest-based collective labor disputes in Vietnam (Internet image)

1. Competence to settle interest-based collective labor disputes in Vietnam

According to Article 195 of the Labor Code 2019, agencies, organizations and individuals who have the competence to settle interest-based collective labor disputes include:

- Labor mediators;

- Labor Arbitration Councils.

An interest-based collective labor dispute shall be settled through mediation by labor mediators before it is brought to the Labor Arbitration Council or a strike is organized.

2. Procedures for settlement of interest-based collective labor disputes in Vietnam

- Procedures for the mediation of interest-based collective labor disputes are the same as the procedures specified in Clauses 2, 3, 4 and 5 Article 188 of the Labor Code 2019.

+ The Labor Arbitration Council shall complete the mediation process within 05 working days from the receipt of the request from the disputing parties or the authority mentioned in Clause 3 Article 181 of the Labor Code 2019.

+ Both disputing parties must be present at the mediation meeting. The disputing parties may authorize another person to attend the mediation meeting.

+ The labor mediator shall instruct and assist the parties to negotiate with each other.

In case the two parties reach an agreement, the labor mediator shall prepare a written record of successful mediation which bears the signatures of the disputing parties and the labor mediator.

In case the two parties do not reach an agreement, the labor mediator shall recommend a mediation option for the disputing parties to consider. In case the parties agree with the recommended mediation option, the labor mediator shall prepare a written record of successful mediation which bears the signatures of the disputing parties and the labor mediator.

Where the two parties do not agree with the recommended mediation option or where one of the disputing parties is absent for the second time without a valid reason after having been legitimately summoned, the labor mediator shall prepare a record of unsuccessful mediation which bears the signatures of the present disputing parties and the labor mediator.

+ Copies of the record of successful mediation or unsuccessful mediation shall be sent to the disputing parties within 01 working day from the date on which it is prepared.

- In case of successful mediation, the labor mediator shall prepare a written record of successful mediation which contains the agreements between the parties and bears the signatures of the disputing parties and the labor mediator. The record of successful mediation shall be as legally binding as the enterprise’s collective bargaining agreement.

- In case the mediation is unsuccessful, the labor mediator fails to initiate the mediation by the deadline specified in Clause 2 Article 188 of the Labor Code 2019, or a party fails to adhere to the agreements in the successful mediation record:

+ The disputing parties are entitled to, by consensus, request the Labor Arbitration Council to settle the dispute in accordance with Article 197 of the Labor Code 2019; or

+ The representative organization of employees is entitled to organize a strike following the procedures specified in Articles 200, 201 and 202 of the Labor Code 2019.

(Article 196 of the Labor Code 2019)

3. Settlement of interest-based collective labor disputes by Labor Arbitration Council in Vietnam 

- In case the mediation is unsuccessful, the labor mediator fails to initiate the mediation by the deadline specified in Clause 2 Article 188 of the Labor Code 2019, or a party fails to adhere to the agreements in the successful mediation record, the disputing parties are entitled to, by consensus, request the Labor Arbitration Council to settle the dispute.

- Within 07 working days from the receipt of the request mentioned in Clause 1 of Article 197 of the Labor Code 2019, an arbitral tribunal shall be established.

- Within 30 working days from the establishment of the arbitral tribunal, in accordance with labor laws, the registered internal labor regulations and collective bargaining agreement, other lawful agreement and regulations, the arbitral tribunal shall issue a decision on dispute settlement and send it to the disputing parties.

- While the Labor Arbitration Council is settling a dispute at the request of the parties as prescribed in this Article, the representative organization of employees must not call a strike.

In case an arbitral tribunal is not established by the deadline specified in Clause 2 of Article 197 of the Labor Code 2019, or a decision on the settlement of the labor dispute is not issued by the arbitral tribunal by the deadline specified in Clause 3 of this Article, or the employer that is a disputing party fails to implement the settlement decision issued by the arbitral tribunal, the representative organization of employees that is a disputing party is entitled to call a strike following the procedures specified in Articles 200, 201 and 202 Article 197 of the Labor Code 2019.

(Article 197 of the Labor Code 2019)

Diem My

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