Lê Thị Dung - Junior Associate

Lê Hữu Tiến - Paralegal

A trade union is an organization of employees established on a voluntary basis to protect the legitimate rights and interests of employees in labor relations (“Trade Union”). Accordingly, in order to further improve the legal framework for issues related to Trade Unions, on 27 November 2024, the Law on Trade Union No. 50/2024/QH15 (“Law on Trade Union 2024”) was passed by the National Assembly to replace the Law on Trade Union No. 12/2012/QH13 and will take effect from 01 July 2025. Accordingly, the Law on Trade Union 2024 stipulates the following notable new contents:

1. Foreign employees are allowed to join the grassroots Trade Union

In addition to the regulation that Vietnamese employees working without labor relations in Vietnam also have the right to establish, join and operate Trade Unions, Law on Trade Union 2024 adds new regulations on foreign employees working in Vietnam under labor contracts with a term of 12 months or more to join and operate at grassroots Trade Unions.

2. Specifying the levels in the organizational system of Vietnam Trade Union

The organizational system of Vietnam Trade Union includes four (04) levels as follows:

1. Central level: Vietnam General Confederation of Labor;

2. Provincial, central sectoral and equivalent levels: provincial and municipal city labor federations (provincial labor federations); central sectoral trade unions; economic group trade unions, general corporation trade unions under the Vietnam General Confederation of Labor;

3. Directly superior grassroots level: labor federation of districts, towns, cities under provinces, cities under municipal cities (district-level labor federations); local sectoral trade unions; economic group trade unions, general corporation trade unions not falling under the cases specified in point b above; trade unions of industrial parks, export processing zones, economic zones, high-tech zones; other directly superior grassroots trade unions as prescribed in the Charter of the Vietnam Trade Union; and

4. Grassroots level: grassroots trade unions, occupational organizations.

3. The Trade Union's supervisory rights in implementing wage scales, payrolls and social criticism

1. Trade Unions have the right to participate in developing, promulgating and supervising the implementation of salary scales, payrolls, labor norms, salary payment regulations, bonus regulations; internal labor regulations; plans, regulations, processes, measures to ensure labor safety and hygiene; regulations on implementing democracy of agencies, units, enterprises and other documents, contents as prescribed by law; and

2. Trade Unions have the right and responsibility to participate in giving opinions and social criticism on draft legal documents, schedules, plans, programs, projects, and proposals of state agencies directly related to the rights and interests of trade union members and employees. 

4. Cases of exemption, reduction, and suspension of Trade Union fees payment

1. Exemption from paying Trade Union fees: Organizations including enterprises, cooperatives, and cooperative unions (“Organizations”) when dissolved or bankrupt in accordance with the provisions of law shall be considered for exemption from the amount of unpaid trade union fees;

2. Reduction of Trade Union fee payment: In case the Organizations encounters difficulties due to economic reasons or force majeure, the trade union fee payment will be considered for reduction;

3. Temporary suspension of Trade Union fee payment: In case the Organization encounters difficulties and has to temporarily suspend production and business activities, leading to the inability to pay trade union fees, it may consider temporarily suspending payment for a period not exceeding 12 months. However, after the suspension period expires, the organization must continue to pay fees and make up for the period of suspension. The deadline for making up payment is no later than the last day of the month following the month in which the suspension ends; and

4. Continuing to maintain the trade union fee payment level of 2% of the salary fund as the basis for compulsory social insurance payment for employees.

Here is our advice on Are foreign employees in Vietnam allowed to join grassroots trade unions?. As a professional corporate lawyer team in the field of investment, we are always ready to provide our clients with optimal solutions in terms of efficiency, cost, and simplified legal procedures. Please visit our DIMAC Website and other News Category to get the latest updates on legal advice and market experience sharing.