Functions of the Collective Bargaining Council in Vietnam

Functions of the Collective Bargaining Council in Vietnam (Internet image)

Regarding this issue, LawNet responded as follows:

1. Regulations on establishment of Collective Bargaining Council in Vietnam

Regulations on establishment of Collective Bargaining Council in Vietnam according to Article 6 of Circular 10/2020/TT-BLDTBXH are as follows:

- In wishing a multi-enterprise collective bargaining via a Collective Bargaining Council (hereinafter referred to as Council), by consensus, the employers and grassroots employee representatives in the participating enterprises (hereinafter referred to as parties) shall designate a representative to send a request for establishment of the Council to the People's Committee of province or central-affiliated city (hereinafter referred to as province) where the enterprises are headquartered or the parties chose as prescribed in clause 1 Article 73 of the Labor Code.

- A request for establishment of the Council shall at least contain:

+ A list of expected participating enterprises, names and headquarters thereof; full names of legal representatives; full names of representatives of grassroots employee representatives;

+ Full name, position and title of the person who, by consensus of the parties, is appointed as the chairperson of the Council, accompanying with the written consent of that person. If the request does not mention a chairperson, that will be subject to decision of the President of People’s Committee of province;

+ A list of representatives of the parties in the Council;

+ Expected issues for bargaining, performance duration of the Council, collective bargaining plan, support activities of the Council (if any).

- Within 20 business days after receiving the said request, the People's Committee of province shall issue a decision on establishment of the Council. If the request is rejected, the People's Committee of province shall provide explanation in writing.

- The Department of Labor, War Invalids and Social Affairs shall take charge and cooperate with Confederation of Labor of province, employer representative organization of province, the participating enterprises and relevant entities in seeking consultation, and then request the People's Committee of province to plan the establishment of the Council.

A plan for establishment of the Council shall at least contain:

+ Composition of the Council, composed of:

++ Chairperson;

++ Representatives of the People's Committee of province;

++ Representatives of the parties;

++ Other entities (if any).

+ Functions and tasks of the Council, the chairperson and other entities (if any).

+ Performance duration of the Council.

+ Operation plan of the Council.

+ Operation funding of the Council.

+ Draft establishment decision of the Council.

If the Department of Labor, War Invalids and Social Affairs requests not to establish the Council, an explanation is required.

- During the operation process, in seeking a change to the chairperson, representative of the People's Committee of province, functions, tasks, performance duration of the Council in conformity with the actual circumstances, the incumbent chairperson shall send a request to the People's Committee of province for decision.

Within 7 business days after receiving such a request from the incumbent chairperson, the People's Committee of province shall consider amending the decision on establishment of the Council. If the request is rejected, a written explanation is required.

2. Functions of the Collective Bargaining Council in Vietnam

According to Article 7 of Circular 10/2020/TT-BLDTBXH, the Council is functioned as a representative organization for the parties to undertake the collective bargaining as per the Labor Code.

3. Tasks of the Collective Bargaining Council in Vietnam

According to Article 8 of Circular 10/2020/TT-BLDTBXH, the tasks of the Collective Bargaining Council in Vietnam are as follows:

- Make a plan to undertake the collective bargaining at the requests of the parties and under the decision on establishment of the Council.

- Hold and chair meetings for the parties’ representatives to enter into negotiation.

- Provide relevant information for the parties’ representatives to enter into negotiation.

- Assist the parties to seek consultation on the draft collective bargaining agreement of multi enterprises as prescribed in clause 2 and clause 3 Article 76 of the Labor Code.

- Facilitate the signing of collective bargaining agreement of multi enterprises as prescribed in clause 4 Article 76 of the Labor Code.

- Supervise the implementation of collective bargaining agreement of multi enterprises under the decision on establishment of the Council, ensure the conformity with the performance duration of the Council.

- Send reports on performance results of the Council to the People's Committee of province and Department of Labor, War Invalids and Social Affairs.

- Perform other tasks as required by the parties and the tasks as specified in the decision on establishment of the Council.

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