What are unions? Is the company required to establish a union?

Unions play an important role in protecting the rights of employees and promoting a fair and harmonious labor relationship between employees and employers. Establishing a grassroots union not only benefits employees but also the company, helping to build a stable working environment and improve work efficiency. Through the following article, Long Phan will guide customers on regulations related to unions.

Regulations on trade union organization

Trade unions are socio-political organizations of workers, established on a voluntary basis and aimed at protecting the legal rights of workers. The Trade Union is a member of Vietnam’s political system, operating under the leadership of the Communist Party of Vietnam.

Trade unions protect the legal rights of workers in enterprises, participate in state management activities, supervision and inspection of organizations, agencies and enterprises.

The trade union operates according to the principle of democratic centralism, ensuring the union’s organization and operations are in accordance with the Charter of the Vietnam Trade Union and state law.

CSPL: Articles 1, 6, 10 of the Law on Trade Union 2012.

Principles and procedures for establishing trade unions

According to the provisions of Article 6 of the Law on Trade Union 2012, trade unions are established on the voluntary basis of employees. This means that businesses are not required to have a grassroots union, unless employees request and voluntarily establish one.

Is it necessary to pay union dues when a union is not established?

• Subjects required to pay union fees: All agencies, organizations, and enterprises of all economic sectors, including foreign organizations employing workers in Vietnam, are required to pay union fees.
• Reasons for paying union dues: Paying union dues is to support union activities, protect the rights of employees, as well as ensure the sustainable development of labor relations in the enterprise.
• Regulations on union dues: All businesses must pay union dues, even if there is no local union. This cost is paid at 2% of the salary fund as a basis for paying social insurance for employees.

CSPL: Clause 2, Article 26 of the Law on Trade Union 2012, Article 4 of Decree 191/2013/ND-CP.

Steps to carry out procedures for establishing a grassroots trade union

Conditions of establishment:

• Enterprises establishing trade unions must be legally established according to the law on enterprises.
• Enterprises or organizations must have at least 05 employees who wish to establish a grassroots union.
• Trade unions were established to represent the legal rights of workers in the workplace, with the consensus of workers in the organization.

Establishment procedures:

Steps to establish a grassroots trade union according to the process specified in Article 14 of Decision 174/QD-TLD of 2020, guided by Point 12 of Instruction 03/HD-TLD of 2020:

Step 1: Set up a grassroots trade union mobilization committee

• Establish a grassroots trade union campaign committee with the consensus of workers.
• The Campaign Committee is responsible for propagating, campaigning and receiving applications from workers to join the union.
• The Board liaises with higher-level unions to receive support and guidance.

Step 2: Organize a congress to establish a grassroots trade union

• Once all conditions have been prepared, the Campaign Committee organizes a congress to establish a grassroots trade union.
• Participants in the congress include: Campaign Committee; Employees have an application to join a union; representatives of superior trade unions, business representatives and other relevant sectors.
• The Congress elected the Executive Committee of the grassroots trade union through secret voting.
• After the congress, the Campaign Committee handed over the documents to the new grassroots trade union Executive Committee.

Step 3: Prepare documents to establish a grassroots trade union

• Within 10 working days from the end of the congress, the grassroots trade union Executive Committee must meet to elect the Standing Committee and other positions.
• Within 15 working days after the congress, the Executive Committee of the grassroots trade union sent a request for recognition of the establishment of the grassroots trade union to the superior trade union.

Step 4: The superior trade union issues a decision to recognize the establishment of the grassroots trade union

• The superior union evaluates the application within 15 working days.
• If the dossier is valid: The superior trade union issues a decision to recognize the grassroots trade union.
• If the dossier is not valid: The superior trade union sends a written notice and instructs the grassroots union to edit the dossier.

Step 5: The grassroots trade union officially comes into operation

• The grassroots trade union carries out the seal engraving procedure.
• The grassroots trade union began operating in accordance with the law.

Note: Enterprises can choose to establish a combined grassroots union if there is not enough number of employees or there are not enough conditions to establish a separate union.

Consulting services for establishing trade unions for businesses

At Long Phan, we support customers with procedures for establishing trade unions as follows:

• Consulting on regulations related to union establishment.
• Advise on the rights and obligations of the grassroots trade union and employees after establishment.
• Support in drafting and preparing documents to establish a union.
• Representing customers to submit applications and work with competent authorities.
• Consulting on the process of organizing grassroots trade union congresses and related procedures.
• Consulting on handling problems that arise if the superior union requests additional documents or amendments to the documents.
• Consulting on other related procedures.

Establishing a union in an enterprise is a voluntary process for employees, not a mandatory requirement for all companies. However, businesses still have to pay union fees if there is no grassroots union. Customers need to receive clear and detailed advice on procedures for establishing a union as well as related obligations. Please contact Long Phan via the hotline 0906735386 for dedicated and accurate support.