Instructions for distribution of trade union revenues to internal trade unions in Vietnam

Instructions for distribution of trade union revenues to internal trade unions in Vietnam (Internet image) 

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

1. Instructions for distribution of trade union revenues to internal trade unions in Vietnam

According to Article 21 of the Regulations issued together with Decision 1908/QD-TLD in 2016, the distribution of financial revenues to grassroots trade unions is as follows:

- 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. The internal trade union shall pay trade union contributions according to the cost estimate of this year or revenues of financial statement (if the financial statement has been made).

- Provision of funding for internal trade unions that are not assigned to collect trade union contributions.

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.

- With regard to authorities, organizations and enterprises that have not established their 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 using for above-mentioned activities shall be managed, followed and returned to authorities, organizations and enterprises when their trade unions are established. In the cases where these authorities, organizations and enterprises go bankrupt or dissolve, trade union contributions collected shall be recorded as an increase in of their supervisory trade union revenues.

2. Instructions on Distribution of trade union revenues to superior trade unions of internal trade unions in Vietnam

According to Article 22 of the Regulations promulgated together with Decision 1908/QD-TLD in 2016, superior trade unions of internal trade unions may retain a certain proportion of the total trade union contributions and fees collected according to the annual guidance of the VGCL’s Presidium. Superior trade unions of internal trade unions may use their own revenues.

* Distribution of the trade union revenues between Confederation of Labor of provinces and their superior trade unions will be regulated by Confederation of Labor of provinces until there is VGCL’s guidance.

* Distribution of the trade union revenues between the VGCL and Confederation of Labor of provinces is specified as follows:

** Units that contribute to VGCL.

Confederation of Labor of provinces whose amount of collected trade union contribution and fees has the difference of more than 10 percent in comparison with expenditures of units (including supervisory trade unions and Confederation of Labor of provinces) according to the expenditure limit prescribed in annual announcement of the VGCL shall contribute to VGCL.

Trade union contributions paid to the General Confederation = Total collected trade union contribution and fees of this unit multiplied by following contribution rates:

- With regard to maximum revenues that is 500 billion VND:

- The revenue that is over 500 billion VND:

Units that have the amount of collected trade union and fee over 500 million VND shall contribute to the VGCL at level 1 of above table together with the amount in excess of 500 billion VND that shall be multiplied by the rate of 5,5 %.

The superior trade unions of internal trade unions shall contribute to VGCL according to the cost estimate of this year or financial statement (if the financial statement has been made).

If the revenue of financial statement exceeds the revenues of cost estimate level, superior trade unions of internal trade unions shall contribute to VGCL according to the cost estimate level and the exceeding amount shall be multiplied by the contribution rate of next level.

The Presidium of the General Confederation considers adjusting contribution rate of units that do not comply with the contribution rate prescribed in above-mentioned regulations when allocating annual estimates.

** Financially autonomous units

Units whose amount of collected trade union contribution and fees has the difference of fewer than 10 percent in comparison with expenditures of units (including the supervisory trade unions and Confederation of Labor of provinces) according to expenditure limit prescribed in annual announcement of the VGCL shall be defined as financially autonomous units.

** Funded units

Units whose amount of collected trade union contribution and fees do not balance the accounts according to limit of fulltime trade union officials, expenditure limit, adjustment coefficient applying to mountainous, remote and isolated regions announced annually by the VGCL shall be provided funding equal to the difference.

If the quantity of fulltime trade union officials of a superior trade union of internal trade union defined according to above-mentioned limit and adjustment coefficient is more than the quantity of fulltime trade union officials announced by the VGCL, the quantity of fulltime trade union officials announced by the VGCL will be the basis for calculation of funding.

Apart from above-mentioned regulations, the VGCL’s Presidium will consider deciding to provide funding for units that are not financially autonomous.

* Use of VGCL’s revenues.

VGCL’s revenues is used for providing funding for the VGCL’s Office, its affiliated units and above mentioned units; creating backup fund of the VGCL and providing other supports to units according to decision of VGCL’s Presidium.

* Trade union contributions used for direction and cooperation (comply with the VGCL’s Decision 887/QD-TLD dated on July 2, 2015).

** Trade unions of central branches and equivalent levels shall pay the trade union contribution used for direction and cooperation to the VGCL equal to4 percent of the collected trade union contributions that may be used by supervisory trade unions.

** The Confederation of Labor of provinces shall pay trade union contribution used for direction and cooperation to the VGCL equal to4 percent of collected trade union contributions that may be used by supervisory trade unions.

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