Cases of invalid collective bargaining agreements in Vietnam

Cases of invalid collective bargaining agreements in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows

1. Cases of invalid collective bargaining agreements in Vietnam

Specifically, Article 86 of the Labor Code 2019 stipulates invalid collective bargaining agreements as follows:

- A collective bargaining agreement shall be partially invalid if one or some of its contents are contrary to the law.

- A collective bargaining agreement shall be entirely invalid in any of the following circumstances:

= The entire contents of the collective bargaining agreement are illegal;

= The collective bargaining agreement was concluded by a person without due competence;

= The procedures for negotiation and conclusion of the collective bargaining agreement were not followed.

2. Effective date and effective period of collective bargaining agreements in Vietnam

Pursuant to Article 78 of the Labor Code 2019, regulations on the effective date and effective period of collective bargaining agreements are as follows:

- 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.

- 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.

- 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.

3. Regulations on implementation of enterprise-level collective bargaining agreements in Vietnam

According to Article 79 of the Labor Code 2019, regulations on the implementation of enterprise-level collective bargaining agreements are as follows:

- The employer and the employees, including new employees who are employed after the collective bargaining agreement has come into effect, shall be responsible for the full implementation of the effective collective bargaining agreement.

- Where the rights, responsibilities and interests of the parties stipulated in the employment contract which were concluded before the effective date of the collective bargaining agreement are less favorable than those of respective provisions provided in the collective bargaining agreement, the provisions of the collective bargaining agreement shall prevail.

Internal labor regulations of the employer which are not conformable with the collective bargaining agreement shall be revised accordingly. Provisions of the collective bargaining agreement shall apply until such revisions are made.

- Where a party considers that the other party does not perform fully or violates the provisions of the collective bargaining agreement, the former has the right to request the latter to fully comply with the agreement, and both parties must jointly settle the issue. In case of failure to settle the issue, either party has the right to request settlement of the collective labor dispute in accordance with the law.

4. Regulations on expiry of collective bargaining agreements

Within 90 days prior to the expiry date of a collective bargaining agreement, the parties may negotiate extension of the collective bargaining agreement or conclusion of a new collective bargaining agreement. In case the parties agree on an extension, a survey shall be carried out in accordance with Article 76 of the Labor Code 2019.

Where the collective bargaining agreement expires while the negotiation process is still on-going, it shall continue to be effective for a maximum duration of 90 days from the expiry date, unless otherwise agreed by the parties.

(Article 83 of the Labor Code 2019)

Ho Quoc Tuan

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