What is the necessity of the establishment of the primary Trade Union?

In the recent statistics of the Vietnam Federal Confederation of Labor, there are 60% of the foreign-owned Enterprises and 80% private-owned Enterprises having no primary Trade Union.

In practice, the lack of the establishment or the effective operation of the primary Trade Union caused many unexpected legal issues and damages. The effective primary Trade Union helps to balance the benefit of the Employer and Employees in order to increase the business.

The main assignment of the Trade Union is to: protect the lawful rights and benefits of the Employees, involve in the management in the permitted scope; propaganda, educate and encourage the Employees to improve the managing role. Thus, the law stipulates that the eligible Enterprises must establish the primary Trade Union.

S&B LAW would like to introduce the establishment procedure as follows:

I. The competent authority:

The District Labor Confederation of the headquarter of the Enterprises.

II. The procedure:

Phase1: The Enterprise submits the application dossier for the establishment of the primary Trade Union in the Office of District Labor Confederation.

Phase 2: Upon the submission, the recipient will deliver the receipt for the Enterprise. The District Labor Confederation issues the Decision of establishment of primary Trade Union for Enterprise upon receiving the legitimate submission.

Phase 3: The District Labor Confederation will send the Introduction Letter to the Enterprise to register the seal sample of the primary Trade Union.

III.Outcome of the procedure:The Decision of establishment of primary Trade Union.

IV. The application dossier:

– The notarized copy of the Business Registration Certificate with the notary in less than 06 months;

– The application letter to request the establishment of the primary Trade Union;

– The list of the member;

– The list of the nominates for the Temporary Trade Union Committee;

– 01 copy for the labor status in the Enterprise (approval of the Department of Labor);

– The request to join Trade Union of the Employees;

– The draft of the Collective Labor Agreement.

– 01 picture in size 2×3 for each Employee joining the Trade Union.

V. Time:

Within 10 working days upon receiving the legitimate application dossier in the competent authority.

VI. Other requirements:

1. The requirement for the mandatory establishment of the Trade Union in the Enterprise:

The Enterprise has more than 5-member Trade Union under the Decision of the upper level Trade Union.

2. The following individuals will not be the member of the Trade Union:

Owner, Chairman, Director, Vice-Chairman, Deputy Director, and the authorized individuals managing the Enterprise.

VII. Legal basis:                                                

1.   Law on Trade Union 2012;

2.   Charter of Vietnam Trade Union 2008;

3.   Guidelines of the Charter of Trade Union No. 703/HD-TLĐ of Vietnam Federal Confederation of Labor dated 06 May 2009.

S&BLAW is pleased to assist Client to standardize the application dossier, submit the documents, liaise with the competent authority, draft Collective Labor Agreement, Internal Labor Rule, Labor Contract and other relevant documents…if requested by the Client.

If you would like further information on Establishment of the primary trade union of the enterprise, a necessary point, please either email to our Partners at: info@sblaw.vn or call to our Office:
Ha Noi Office: +84 (4) 62 62 0246
HCM Office: +84 (8) 35 208 101.
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