CONDITIONS FOR ESTABLISHING REPRESENTATIVE ORGANIZATIONS OF EMPLOYEES AT ENTERPRISE AS PROVISIONS OF THE LABOUR CODE 2019

One of the new points of the Labour Code 2019 compared to the Labour Code 2012 is allowing employees to establish representative organizations of employees at enterprises. This is a new, independent, and different organization from the traditional grassroots trade union. However, the regulations on the establishment of representative organizations of employee at enterprises are still not specific and detailed, which causing many difficulties for both enterprises and employees in the process of applying them in practice. In this article, Lac Duy & Associates will provide readers with some basic information about the conditions for establishing a representative organization of employee at an enterprise under the new provisions of the Labour Code 2019.

Currently, the conditions for establishing a representative organization of employees at an enterprise are specified from Article 172 to Article 174 of the Labour Code 2019, specifically as follows:

Firstly, on the registration of the establishment of a representative organization of employees at the enterprise.     

So as to establish a representative organization of employees at an enterprise, an enterprise needs to register the establishment of an employee’s organization at a competent state agency. And like any organization established and operating in the Vietnamese territory, a representative organization of employees at an enterprise must comply with the Constitution and relevant laws[1].

However, up to the present time, the regulations on dossiers and procedures for registration of the establishment of representative organizations of employees at enterprises have not been guided in detail by the Government through specific legal documents. Therefore, to remove obstacles and difficulties for enterprises and employees in registering to establish this organization, the Government should quickly issue specific and detailed instructions for both enforcement agencies, individuals, and organizations to implement so that they can be applied in practice, not just “vague regulations on documents”.

Secondly, on establishment internal organization

At the time of registration, the representative organization of employees at the enterprise must have a minimum number of members who are employees working at the enterprise in accordance with the Government’s regulations. Up to now, the Government has not yet issued a document prescribing the minimum number of members of the employee’s organization at the enterprise. Therefore, it is necessary to wait for more detailed guidance documents from the Government and relevant departments to be able to apply it in practice.

After reaching the minimum number of members, the members of the employee’s organization at the enterprise will conduct the election of the management board of the internal employee organization. Accordingly, members of the management board must satisfy the following conditions:

• be Vietnamese employees of the enterprise;

• be not serving a sentence, do not have an unspent conviction and are not undergoing criminal prosecution for breach of national security, violations against freedom and democracy, infringement of ownership defined in Criminal Code.[2]

Finally, on charter of representative organization of employees at the enterprise

Representative organization of employees at the enterprise must have Charter. The charter of an employee’s representative organization shall contain:[3]

• Name, address and logo (if any) of the organization;
  • The objectives of protecting the lawful rights and interests of the members in labour relations in the enterprise; cooperating with the employer in resolving issues relevant to the rights, obligations and interest of the employer and employees; develop progressive, harmonious and stable labour relation;
  • Requirements and procedures for joining and leaving the organization.
  • Organizational structure, tenure and representative of the organization;
  • Rules for organization and operation;
  • Methods for ratifying decisions of the organization;
  • Membership fees, sources of assets and finance, and the management thereof;
  • Members’ proposals and responses thereto.

The above is information about the conditions for establishing a representative organization of employees at the enterprise in accordance with the provisions of the Labour Code 2019. In case you need detailed information or other information in the relevant field, Readers can contact Lac Duy & Associates for timely advice and support.

[1]Article 172.1 of the Labor Code 2019

[2] Article 173 of the Labor Code 2019

[3] Article 174.1 of the Labor Code 2019