Notes on collective labor agreements
2023/04/19
- Tran Ha My
Introduction
A collective bargaining agreement is one of the most important regulations in a company, recording the agreement between employers and workers regarding the benefits that workers receive and their obligations. In addition to introducing some basic matters regarding collective labor agreements, this article will also explain the order and procedures for signing, as well as precautions when concluding a collective labor agreement, in order to serve as a reference when drafting a collective labor agreement.
1. What is a collective labor agreement?
A collective labor agreement is an agreement reached through collective bargaining between employers and workers, and is concluded in writing by each party.
Collective bargaining refers to negotiations and agreements carried out between trade unions and employers (or employers’ organizations) in order to build better working conditions and stable labor-management relations. Collective bargaining is conducted on the basis of the “voluntary” principle, so the law does not require companies to sign collective labor agreements, relying solely on negotiations between the parties.
2. Main contents of collective labor agreements
The 2019 Labor Law stipulates that while the content of collective labor agreements must not violate the provisions of the law, it is necessary to “encourage” the content to be more advantageous to workers (*1). The main contents targeted for encouragement are as follows (*2).
(i) wages, allowances, raises, bonuses, meals and other systems;
(ii) Labor standards, working hours, rest periods, overtime work, work shifts;
(iii) Guarantee of rights upon reemployment or reinstatement
(iv) Guarantee of occupational safety and health and compliance with work rules
3. Points to note when concluding a collective labor agreement
3.1. Flow of conclusion of collective labor agreement (*3)
The following four steps need to be taken before a collective labor agreement can be concluded.
Step 1: Discuss the draft collective bargaining agreement with workers and employers’ organizations.
Step 2: Hear the opinions of all workers regarding the contents of the collective bargaining agreement.
The timing, place, and method of voting on a draft collective labor agreement shall be decided by the workers, but they must not affect the normal business operations of the enterprise. Employers must also not obstruct the process of voting on draft resolutions.
Step 3: Sign a collective labor agreement.
Collective labor agreements are signed by legal representatives of the negotiating parties. It should be noted that the agreement can only be signed if 50% or more of the company’s workers agree.
Step 4: Send the collective labor agreement.
Within 10 days from the date of signing of the collective labor agreement, the employer shall submit an application to the specialized labor agency belonging to the provincial People’s Committee (Ministry of Labor, Invalids and Social Affairs or the management committee of the industrial zone) where the head office is located. , one copy of the collective labor agreement must be sent.
Step 5: After the collective labor agreement has been concluded, the employer must publish the agreement and inform the workers of its contents.
3.2. Effective date of collective labor agreement
The effective date of a collective bargaining agreement shall be determined by the agreement of each party, and the effective date shall be stated in the collective bargaining agreement. If the parties cannot agree on the effective date, the collective agreement will become effective from the date of conclusion (*4).
After the regulations come into effect, each party must be fully aware of their importance and comply with the regulations appropriately. Collective labor agreements apply to all employers and workers (*5).
3.3. Amendments and supplements to collective labor agreements
If the parties agree to amend or supplement the collective bargaining agreement, they will need to renegotiate and re-sign the collective bargaining agreement from scratch following the process described in item 3.1. ).
In addition, if the content of a collective labor agreement becomes contrary to the revised legal content due to a revision of the law, each party must amend or supplement the collective labor agreement so that it conforms to the revised legal content. . As a result, the rights of workers stated in collective agreements will always comply with the latest laws and regulations (*7).
3.4. Deadline of collective labor agreement
The validity period of collective labor agreements is from one to three years. The specific deadline is determined by agreement between the parties and must be stated in the collective labor agreement. Furthermore, if each party agrees, different expiration dates can be applied to each item (*8).
Within 90 days before the expiry date of the collective labor agreement, each party may negotiate to extend the term of the collective labor agreement or conclude a new collective labor agreement (*9).
If the parties agree to extend the term of the collective bargaining agreement, workers will need to be consulted as described in step 2 of item 3.1. Furthermore, the law does not require re-signing the collective labor agreement or sending it to a specialized agency. However, since the information on the extended period of the collective labor agreement is one of the newly agreed upon contents based on the negotiations, it is advisable to conduct a hearing and re-sign the agreement and send it to the specialized bodies in the same manner as the contents of Item 3.3.
If negotiations have not been completed on the expiry date of the collective labor agreement, the previous collective labor agreement may continue to be valid for a period not exceeding 90 days from the expiry date of the collective labor agreement. However, this does not apply if each party has made separate arrangements (*10).
4. Compliance with collective labor agreements
Collective labor agreements must be strictly adhered to by employers and workers. Workers who join the company after the effective date of the collective labor agreement are also obligated to appropriately comply with the collective labor agreement (*11).
If the content stipulated in the labor contract concluded before the effective date of the collective labor agreement (such as the rights, obligations, and benefits of each party) is less favorable than the content stipulated in the collective labor agreement, the collective labor agreement It is necessary to comply with the contents of the collective bargaining agreement. Therefore, the content of a labor contract that does not conform to the collective labor agreement must be amended so that it does. Until amendments are made, it is necessary to comply with the contents of the collective labor agreement (*12).
In addition, if a violation of a collective labor agreement is discovered, each party is responsible for trying to resolve it, and if it cannot be resolved, either party has the right to propose a solution through collective labor disputes in accordance with the provisions of laws and regulations.
Conclusion
Vietnamese law does not necessarily require the creation of collective labor agreements. However, collective labor agreements are important rules governing the rights and interests of employers and workers, and serve as a basis for preventing conflicts of interest and resolving labor disputes between the parties. Therefore, it is recommended to carry out procedures for negotiating, concluding and issuing collective labor agreements in accordance with the provisions of the law, depending on the circumstances of the enterprise and the wishes of employers and workers.
References
*1:Article 75 of the 2019 Labor Law
*2:Article 67 of the 2019 Labor Law
*3:Articles 76 and 77 of the 2019 Labor Law
*4:Article 78 of the 2019 Labor Law
*5:Article 78 of the 2019 Labor Law
*6: 2019 Labor Law Article 82, Paragraph 1
*7: 2019 Labor Law Article 82, Paragraph 2
*8:Article 78, Paragraph 3 of the 2019 Labor Law
*9:Article 83 of the 2019 Labor Law
*10:Article 83 of the 2019 Labor Law
*11:Article 79, Paragraph 1 of the 2019 Labor Law
*12:Article 79, Paragraph 2 of the 2019 Labor Law
*This article was translated by Yarakuzen.
