Trade Unions in Vietnam: Everything You Need to Know

May 08, 2024

HR & Payroll

Understanding Trade Unions in Vietnam: Everything You Need to Know

Trade unions play a vital role in Vietnam’s labor landscape, advocating for workers’ rights and fostering a productive working environment. Whether you’re an employer, an employee, or simply interested in labor relations in Vietnam, this post provides a comprehensive guide to trade unions in the country.

Table of Contents

What Are Trade Unions?

In Vietnam, trade unions serve as socio-political organizations that represent the working class. Workers establish these unions voluntarily, and they function under the leadership of the Communist Party of Vietnam. Their core mission is to protect workers’ legitimate rights and interests while also supporting state management and socio-economic development.

Structure and Membership

Vietnam’s trade union system operates in a hierarchical structure. At the top sits the Vietnam General Confederation of Labor. Beneath it, various trade unions function at multiple levels. Primary trade unions form within individual organizations that employ workers — including state agencies, local businesses, foreign enterprises, and other entities.

Any Vietnamese worker employed in these organizations has the right to join a trade union. However, membership remains a personal choice, not an obligation.

Key Principles

Voluntary Basis: Workers choose whether to join; they are not obligated.
Democratic Centralism: Trade unions encourage member participation, while maintaining a unified, centralized direction.
Alignment with Law and Party: Trade unions operate in accordance with Vietnamese law and the Charter of Vietnamese Trade Unions. They also follow the guidance of the Communist Party.

Rights and Responsibilities of Trade Unions

Rights

Representation: Trade unions speak on behalf of workers in negotiations and disputes with employers.
Legal Support: They provide legal advice and assistance to members.
Policy Participation: Unions join policy-making processes, labor law inspections, and social dialogues.
Strikes: Under legal conditions, trade unions can lead strikes to advocate for workers’ rights.

Responsibilities

Worker Development: Unions promote education, training, and awareness of labor laws.
Harmonious Labor Relations: They help build constructive, cooperative relationships between employers and employees.

Finances: How Trade Unions Are Funded

Trade Union Funds

Employers must contribute 2% of their total payroll to trade union funds. The system distributes these contributions across different trade union levels.

Membership Fees

Union members pay 1% of their monthly salary (based on social insurance calculation), up to a capped amount. Trade union then allocate these funds across different levels as well.

⚠️ Important Note: Employees who are not union members do not pay membership fees.

Penalties for Non-Compliance

The law imposes penalties on both employers and employees who violate trade union obligations. For example:

Employers may be fined if they fail to contribute union funds or withhold required membership fees.
Employees who repeatedly avoid paying membership dues (without valid reasons) may face disciplinary measures.

Additional Points to Consider

Businesses Without Unions: Even if an organization doesn’t have a primary trade union, the employer still must contribute to the union fund.
Benefits of Membership: Joining a union grants workers access to representation, legal assistance, educational opportunities, and various other support services.

Conclusion

It is essential for anyone involving in Vietnam’s workforce to understand trade union. By following trade union regulations, both employers and employees contribute to a fair, balanced, and productive labor environment — one that actively protects workers’ rights while fostering economic progress.

*Disclaimer: This blog post provides general information on Vietnamese trade union and is not intended as legal advice. Labor laws and regulations are subject to change. For accurate and up-to-date guidance, please consult a qualified Vietnamese labor lawyer or a representative from the Vietnam General Confederation of Labor. The author and publisher are not liable for actions taken based on this information. *

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