Vietnam: New Trade Union Law enhances Trade Union rights and provides clarity on employees' organizations

11 Dec 2024    2 minute read
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In brief

On 27 November 2024, the long-awaited new Trade Union Law was adopted by the National Assembly, with novel changes that are expected to strengthen employee rights with respect to trade union activities and to enhance operations of the Vietnam Trade Union.

The new law will come into effect on 1 July 2025. There will be updated guidance on the Vietnam Trade Union's functions and financial affairs. Meanwhile, the Government is still expected to issue further regulations regarding "employees' organizations" – which will be established and organized independently from the Vietnam Trade Union system.

Contents

Key takeaways

  • Foreign employees working under employment contracts with a term of 12 months or more will have the right to join the Vietnam Trade Union.
  • The law strictly prohibits acts of discrimination against trade union rights and provides a detailed list of such prohibited acts (for example, refusing to renew employment contracts or creating work difficulties for the purpose of diminishing union activities).
  • Local authorities that are auditing an employer in relation to employee's rights and benefits are required to invite trade union representatives to participate. These representatives can then request the employer to provide information and explanations related to the audited matters.
  • The law still acknowledges the right of the Vietnam Trade Union to represent and protect employees at companies where a corporate trade union has not yet been established - either upon the employees' request or when the union notices potential violations against employee rights and benefits. 
  • Regarding the trade union expenses payable by employers, the rate of contribution will remain unchanged at 2%. The new law also stipulates circumstances where employers may be exempted from, or entitled to a reduction or postponement of, this payment. 
  • The Vietnam Trade Union will also be subject to additional financial monitoring measures, including reports to the National Assembly and audits by the State Audit Office. Corporate trade unions will also be required to publicize relevant financial information to employees annually.
  • Employees' organizations will also be entitled to receive a portion of the collected trade union expenses mentioned above, depending on its number of members and further guidance from the Vietnam Trade Union. These organizations can also apply to join the Vietnam Trade Union system. The law, however, does not provide guidance on the establishment and operation of employees' organizations, which should be addressed in an upcoming Decree of the Government.
Contact Information
Thuy Hang Nguyen
Partner
Ho Chi Minh City
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thuyhang.nguyen@bakermckenzie.com
Tri Trung Pham
Special Counsel at BakerMcKenzie
Hanoi
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tritrung.pham@bakermckenzie.com
Hoang Anh Nguyen
Special Counsel
Ho Chi Minh City
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hoanganh.nguyen@bakermckenzie.com

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