When an employee works at one agency or organization, it is normal for the trade union fund to be paid at that particular agency or organization. However, where do the employees who work in two different places pay the trade union fee?
Article table of contents
1. What is the Trade Union fund?
Trade Union fund is the funding allocated for union activities at various levels, which is contributed by government agencies, organizations, and both unionized and non-unionized businesses, regardless of whether they have established grassroots trade unions. According to Clause 2 Article 26 of the Law on Trade Union 2012 of Vietnam, currently, Trade Union funds are paid by agencies, organizations and enterprises in 2% salary funds based to pay social insurance for laborers. This salary fund refers to the total amount of salaries of employees who are required to contribute to social insurance according to the regulations of the social insurance law.
According to Article 21 of Decision No. 1908/QĐ-TLD dated December 19, 2016 on promulgation of regulations on management of the trade union budget and the trade union’s assets, collection and distribution of revenues, rewards and penalties related to trade union revenues and expenditures, trade union revenues shall be distributed to internal trade unions and superior trade unions as follows:
- For agencies and organizations that have internal trade unions:
+ An internal trade union may retain a certain proportion of the total trade union contributions and total trade union fees collected according to the annual guidance of the VGCL’s Presidium and may retain 100% of its other revenues according to regulations of law and General Confederation.
+ An internal trade union shall transfer its trade union contribution to its supervisory trade union.
+ An internal trade union shall transfer its trade union contribution to its superior trade union (the trade union that is assigned to manage the trade union budget) a proportion of the total trade union contributions and total trade union fees collected according to the annual guidance of the VGCL’s Presidium.
+ After receiving trade union contributions from authorities, organizations and enterprises, the supervisory trade union that is assigned to collect trade union contributions shall provide funding for its internal trade unions within 05 working days.
- For agencies and organizations that do not have internal trade unions: After receiving trade union contributions from authorities, organizations and enterprises, the supervisory trade union that is assigned to collect trade union contributions may retain a certain proportion of the total trade union contributions collected according to the annual guidance of the VGCL’s Presidium for expenditures on propagation, recruitment of trade unionists and establishment of internal trade unions, agreement of collective labor agreements, protection and care of employees in these units. At the end of year, the redundant trade union contributions used for above-mentioned activities shall be managed, followed and returned to authorities, organizations and enterprises when their trade unions are established.
Thus, the trade union fund is an important source of revenue and will be allocated to internal trade unions and superior trade unions to organize union activities at various levels. These activities are specified in Article 27 of the Law on Trade Union 2012 as follows:
- Propagating, spreading, educating on lines, guidelines, policies of the Party, law of the State; improve professional level, professional skill for laborers;
- Organizing activities that represent, protect legal and legitimate rights and interests of laborers;
- Developing trade union members, establishing primary trade unions, making trade unions firm and strong;
- …
- Mobilizing, awarding laborers, children of laborers having record in studying and working;
- Paying salary for full time trade union cadres; liability allowance for part time trade union cadres;
- Paying for operation of trade union machine at different levels.
These activities not only contribute to the development of trade unions but also bring benefits to employees. Therefore, the trade union fund is a fixed amount of money that agencies and organizations are required by law to allocate and pay.
2. Where do the employees who work in two different places pay the trade union fee?
As analyzed above, the trade union fund is the amount of money that companies are required to allocate, which is 2% of the salary fund, as a basis for paying social insurance for employees, not a contribution towards social insurance. Therefore, regardless of whether an employee works for 2 or 3 companies, all of these companies must contribute to this fund because it is a source of revenue used to protect the rights and interests of employees in the workplace. Even if an employee works at multiple locations, their rights and benefits at each place are protected by the trade union laws.
Phuong Thanh
- Key word:
- Law on Trade Union 2012
- trade union fee
