Operation of the Collective Bargaining Council in Vietnam

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

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

1. Operation of the Collective Bargaining Council in Vietnam

Operation of the Collective Bargaining Council under Article 9 of Circular 10/2020/TT-BLDTBXH are as follows:

- The Council will work in form of meetings.

- The representatives of the employer and grassroots employee representative organizations shall enter into negotiation as prescribed in clauses 1 and 2 Article 72 of the Labor Code and decide the negotiation results in a meeting of the Council.

- The chairperson shall:

+ Hold and chair meetings of the Council for the parties to enter into negotiation as prescribed;

+ Consider adding or replacing representatives of each party; accepting requests for participation to the Council of other enterprises following the consensus of the representatives of the parties;

+ Decide to establish a subgroup of those charged with assistance of the Council and the chairperson in the collective bargaining.

- The representative of the People's Committee of province shall support and provide information deemed necessary for the parties to carry out negotiation.

- The Council shall disband itself upon expiry of the performance duration as specified in the establishment decision. If the parties have agreed otherwise, the chairperson shall seek decision from the People's Committee of province.

- Operation funding of the Council shall be contributed by the employer and grassroots employee representatives in the participating enterprises and mobilized from other sources of funds as per the law.

2. Regulations on the establishment of Collective Bargaining Council in Vietnam

Regulations on the establishment of the Collective Bargaining Council under 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.

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