Collective bargain in enterprise – remarks

While operating business, beside Labor Contract, enterprises can have other negotiations with Employees. These negotiations can be collected and issued as Collective Bargain and apply uniformly to all headquarters of enterprise

Labor Agreements in Enterprises:

1. Collective Bargain is a negotiation reached by negotiating with a group of employees and signed via documents
2. Collective Bargain includes collective labor bargain, collective bargain, collective bargain among different enterprises and other collective bargain.
3. Content of collective bargaining must be in compliance with the law; it is recommended by law to be in favor of employees.

Relevant legal documents:

Law on Labor 2019

Negotiating content of collective bargain:

1. By law, with collective bargain, before signing, a draft version of Collective Bargain has been negotiated among parties and must record opinions of all of employee in enterprise
2. A legal Collective bargain can only be signed with more than 50% of employee concurring vote. Therefore, with less than 50% concurring vote, then a collective bargain cannot be signed.

The validity of Collective Bargain

1. The effective date of collective bargain will be negotiated among parties and recorded in the collective bargain.In case parties do not negotiate the effective date, then it shall be the signing date.
2. A collective bargain can be valid from 01 to 03 years. Specific timeline will be negotiated among parties and recorded in the Collective bargain documents.
3. After signing a collective bargain, the enterprise must notify employees.
4. The validity of Collective Bargain apply to enterprise and all employee enterprise (include the employee entering the company after the collective labor bargain has been signed or employee do not agree with the collective labor bargain)

Expired Collective Labor Bargain

1. Within the timeline of 90 days before the expiring date of Collective Bargain, parties can negotiate to extend the time or sign a new collective bargain.
2. When collective bargain expired while parties still continue to negotiate then the old collective bargain still continue to be valid and be implemented within the timeline of 90 days counting from the expired dated (unless the context otherwise requires)

Collective labor bargain notification procedure:

Within the timeline 10 days counting from the date Collective bargain has been signed, the enterprise must send 01 collective labor bargain to the department of labor war invalids and social affairs at the main headquarters.

Relevant legal documents:

1. Collective labor
2. Official documents
3. Meeting minutes, collective opinion documents of Employee

Remarks:

1. It is not compulsory for an enterprise to sign Collective Labor Bargain, but when the bargain has been signed then strict compliance shall be requested. Therefore, it is recommended that parties should be extra care before signing collective labor bargain
2. Content of collective labor bargain should include and only include content higher than law, or no recent regulations control that (but assigned to Enterprise)
3. Employee, and the Employee’s benefit is higher than the collective labor bargain then this negotiation shall prevail. In contrast, if the employee benefit is lower than then employers, the Collective bargain shall prevail. Therefore, it is highly recommended that employers should negotiate carefully with employees, and prevent counter negotiating the content already recorded in Collective bargain.

Should you have any questions regarding the above allowances, please don’t hesitate to contact An Luat Viet Nam for support and advice. Our law firms with professional lawyers, experience in consulting, building and completing collective labor bargain, and we can also participate to negotiate with Employee during the collective bargain building procedure (especially collective major bargain, bargain between different enterprises); to guarantee the legal safety and lawful benefit of client business activities, foster your business and prevent any risk of conflicts before/during and after the collective bargain has been issued.