Labor Collective Bargaining Agreement in Vietnam

Labor collective bargaining labor collective bargaining agreement (CBA) is a legally binding contract between an employer (or a group of employers) and a labor union, negotiated through the process of collective bargaining. The CBA sets forth the terms and conditions of employment, such as wages, benefits, working hours, and other workplace rules and procedures. In the market, CBA is considered an important legal basis to ensure the legal and legitimate rights and interests of the parties in labor relations. In the following article, Viet An Law Firm would like to present the following article on the basic terms of the labor collective bargaining agreement in Vietnam based on the Vietnam Labor Law with the guidance of Decree 145/2020/ND-CP.

What is a labor collective bargaining agreement?

According to Article 75 of the Labor Code 2019, a labor collective bargaining agreement is understood as an agreement reached through collective bargaining and signed by the parties in writing.

Collective bargaining is a negotiation and agreement between one or more employee representatives with employers to establish working conditions, and regulate the relationship between the parties.

Validity and duration of the labor collective bargaining agreement

Article 78 of the Labor Code 2019 stipulates the validity and duration of labor collective bargaining agreements as follows:

• Validity
  • The parties do not agree, effective from the date of signing
  • As agreed by the parties, recorded in the agreement
• Term
  • Can agree on different terms for each clause
  • From 1 – 3 years, agreed upon by the parties

Basic terms of labor collective bargaining agreement in Vietnam

Based on the definition above, it can be seen that the labor collective bargaining agreement is formed based on the results of collective bargaining, but the content may not be completely identical to collective bargaining. Only agreements reached through collective bargaining and signed in writing by the parties become the content of the labor collective bargaining agreement.

The content of the labor collective bargaining agreement must not be contrary to the provisions of law. The State encourages the development of agreement content that is more beneficial to employees than prescribed by law.

The basic contents of the labor collective bargaining agreement  must come from the contents of collective bargaining. Pursuant to Article 67 of the Labor Code 2019, the content of collective bargaining includes:

• Salaries, allowances, promotions, bonuses, and other benefits
• Labor rates and working hours, breaks between shifts
• Ensuring occupational safety
• Mechanisms to prevent and resolve labor disputes
• Gender equality, maternity protection, annual leave
• Prevent and combat violence and sexual harassment

Salaries, allowances, raises, bonuses, meals and other benefits

These are important regimes and rights of workers and are the most important issues of concern and agreement between the parties.

The parties agree on specific salary and salary allowances for each job under the enterprise’s ability and business efficiency, and principles for adjusting salaries and bonus payments.

Labor rates and working hours, rest hours, overtime, and breaks between shifts

• The two parties agree on the time in which the employee performs work and the time in which the employee is allowed to rest to be able to regenerate labor after a period of work, such as resting during working hours, taking breaks during shift changes, weekly leave, holidays, etc.
• The content of the agreement depends on the parties, but must not be contrary to the provisions of labor law, such as normal working hours must not exceed 8 hours in a day and must not exceed 8 hours in a week.

Ensuring occupational safety and hygiene, implementing labor regulations

• The parties agree on measures to improve working conditions and working regimes for workers doing heavy and hazardous jobs, ensuring the safety of workers during the working process, and preventing harmful factors that reduce human labor are regulated in the Law on Occupational Safety and Hygiene.
• Labor collective bargaining agreement also stipulates the content that employees need to comply with, disciplinary methods, and material responsibilities according to the provisions of law.

Mechanisms and methods to prevent and resolve labor disputes

• This is an important content that the parties aim to protect their legitimate rights and interests, contributing to the stability of labor relations.
• The parties agree on principles for resolving labor disputes and mechanisms for resolving disputes when disputes occur. Some commonly used mechanisms are mediators, arbitrators, and courts.

Ensuring gender equality, maternity protection, and annual leave; Preventing and combating violence and sexual harassment in the workplace

Under Chapter IX of Decree 145/2020/ND-CP regulating female workers, the Parties mutually agree on the contents of ensuring gender equality. This is progressive content, becoming an important principle, ensuring equality between men and women in employment opportunities and career development without being affected by gender issues.

In addition to the above contents, the parties can agree on job security for employees, operating and means conditions of employee representative organizations, the relationship between employer representatives labor and employee representative organizations, and other contents that one of the parties is interested in. These contents must not contravene the provisions of the law.

Distinguish between labor collective bargaining agreement  and labor contract

Some note for parties in labor agreements

Regarding the terms of the labor collective bargaining agreement

• The content of the terms of the labor collective bargaining agreement must not be contrary to the provisions of law; consistent with the general situation of the business.
• Form of the labor collective bargaining agreement: the terms of the labor collective bargaining agreement must be made in writing and signed by the participating parties according to the provisions of law;
• The parties to the agreement need to pay attention to the duration and validity of the labor collective bargaining agreement during the implementation of these provisions.

Regarding invalid labor collective bargaining agreement

According to Article 86 of the Labor Code 2019, labor collective bargaining agreements are invalid in the following cases:

• Partially invalid: some contents of the agreement violate the law;
• Full invalidity: the entire content of the agreement violates the law, the agreement is signed without proper authority and process.

Regarding the obligation to submit a labor collective agreement

According to Article 77 of the Labor Code 2019, the employer participating in the agreement is obliged to send a copy of the labor collective bargaining agreement to the specialized labor agency under the Provincial People’s Committee where its head office is located within 10 days from the date the labor collective bargaining agreement is signed.

The above regulations on the obligation to submit labor collective bargaining agreements are intended to help agencies grasp the content of labor collective bargaining agreements, ensure management and coordination, and at the same time serve as an important basis, contributing to the protection of labor collective bargaining agreement legitimate rights and interests of both employees and employers.

Services on labor collective bargaining agreement of Viet An Law Firm

• Consulting on the form of labor collective bargaining agreement according to the provisions of law;
• Consulting with clients on the basic terms of the labor collective bargaining agreement;
• Consulting on the terms and validity of labor collective bargaining agreement;
• Consulting on methods to prevent and resolve labor disputes;
• Consulting on documents and procedures that need to be followed to resolve labor disputes.

If you need advice on the labor collective bargaining agreement in Vietnam, please contact Viet An Law Firm for the best support.