Since 01 January 2021, the date that the Labor Code 2019 (“Labor Code 2019”) will take effect, in addition to the grassroots-level trade union belonging to the Vietnam Trade Union system (“Trade Union”), employees (“Employee”) are entitled to establish or join an organization that is not a part of the Vietnamese Trade Union system (“Employee’s Organization”) as the representative organization of the Employee at the grassroots level. This is one of new regulations under the Labor Code 2019 compared with the former regulations which provide that the Trade Union is the only subject having the right to represent the Employee’s collective.

This is the result of the internalization of international labor standards that Vietnam has committed when signing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (the “CPTPP”). According to Chapter 19 of the CPTPP, Vietnam must respect and ensure the rights of the Employee in establishing and joining the grassroots-level representative organization of the Employee. At workplace, the Employee is entitled to set up the Employee’s collective representative organization and opt to join the Trade Union system or register with the competent state agency to officially operate as an independent organization besides the Trade Union system.

As a result of the new regulation, the Employee is entitled to choose the Trade Union or the Employee’s Organization as their representative organization [1]. Accordingly, the Trade Union and the Employee’s Organization are equal in rights, obligations and roles in protecting the legitimate rights and interests of the Employee in labor relationships [2], in particular, they shall represent the Employee [3] in:

(i) Collective bargaining with the employer;

(ii) Dialogue at workplace;

(iii) Collecting opitions in building and supervising the implementation of the wage scales, the payroll, the internal labor regulation, etc.;

(iv) The process of settling complaints and labor disputes when authorized;

(v) Organizing and leading strikes.

The establishment of the Employee’s Organization has to be registered with the competent state agency and operates in compliance with the applicable laws and regulations and its principles [4]. However, specific provisions on the establishment registration of the Employee’s Organization according to the Labor Code 2019 are not clear and need to have further guidance from the competent state agency.

The establishment of the Employee’s Organization contributes to create the counterbalance and competition with the Trade Union, thereby promoting the development, improving the efficiency, transparency and perfection of the system, operation and organization of Trade Union. Obviously, if such organization operates workably as expected by the Employee, the Employee’s life, employment, legitimate rights and interests will be received the best attention and protection.

[1]: Article 170.1 and 170.2 of the Labor Code 2019

[2]: Article 170.3 of the Labor Code 2019

[3]: Article 178 of the Labor Code 2019

[4]: Article 172.1 of the Labor Code 2019