Socialist Republic of Vietnam

DECREE ON IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE LABOR CODE WITH RESPECT TO COLLECTIVE LABOR AGREEMENTS

(No. 196-CP, Hanoi, 31 December 1994)


The Government

Pursuant to the Law on the Organization of the Government dated 30 September 1992;

Pursuant to the Labour Code dated 23 June 1994;

Following the proposal of the Minister of Labour, War Invalids and Social Affairs;

Decrees:


CHAPTER I

Entities and Scope of Application of
Collective Labour Agreements

Article 1

1. The scope of entities to which collective labour agreements are applicable is stipulated as follows:

- State owned enterprises;

- Enterprises in other economic sectors and organizations and individuals employing ten (10) or more employees;

- Enterprises with foreign owned capital; enterprises in export processing zones and industrial zones;

- Foreign organizations and international organizations operating in Vietnam employing ten (10) or more Vietnamese employees, except in cases where international treaties to which the Socialist Republic of Vietnam is a signatory or party otherwise provide;

- A number of the provisions of article 2 of this Decree in relation to the negotiation of and entering into collective labour agreements shall apply to the financially autonomous professional and service units of professional or administrative bodies.

2. Collective labour agreements shall not apply to the following:

- State employees and officials employed in State professional or administrative bodies;

- Persons employed in mass associations and political and social organizations;

- Persons employed in special businesses of units of the people’s armed forces and public security forces; commissioned officers, non-commissioned officers and soldiers of the people's armed forces, and officers of the public security forces.


CHAPTER II

Contents of Collective Labour Agreements

Article 2

1. Pursuant to clause 2 of article 46 of the Labour Code, the main contents of a collective labour agreement shall include:

(a) Employment and employment guarantees: measures guaranteeing employment; types of labour contracts for each type of job or occupation; circumstances in which labour contracts shall be terminated; regimes for allowances for loss of work, retrenchment or temporary work stoppages; improvement of skills and training upon technological or organizational changes; principles on and periods for which an employee shall be assigned temporarily to another job.

(b) Working hours and rest breaks: provisions in relation to duration of working day and week; allocation of shifts; rest breaks for each type of job or occupation; weekly day(s) off and public holidays; annual leave including allowances for travel; personal leave of absence; rules and cases regulating additional working hours.

(c) Wages, allowances and bonuses: minimum wages or average wages (monthly, daily, hourly); wage scale or table applied by the enterprise; measures to ensure real wages and methods to adjust wages when market prices fluctuate; method of payment of wages (wages on the basis of time, products produced, or projects completed); principles for establishment and adjustment of wage rates; principles and conditions for wage increases; salary allowances; time for monthly payment of wages; payment of annual leave and travel expenses; payment for additional hours worked; bonuses (discretionary bonuses, monthly bonuses, end of year bonuses, quality bonuses, and bonuses distributed from profits) and rules relating to payment of bonuses (regulations may be included).

(d) Work limits: principles and methods to determine, to trial, to publish, and to adjust work limits; types of work limits which apply to each type of job; average and preferential work limits applicable within an enterprise; measures to deal with cases where work limits are not complied with; principles to consolidate labour and materials (if any).

(e) Occupational safety and hygiene: measures to ensure occupational safety and hygiene; standards and facilities supplied for safety protection purposes; material allowances; measures to improve work conditions; compensation for work-related accidents and occupational diseases (regulations may be included).

(f) Social insurance: provisions on rights and obligations of the employer and employee in respect of social insurance contributions, collection thereof, and payments under the social insurance regime.

2. In addition to the contents referred to above, the parties may agree to other items such as: methods to resolve labour disputes; meals during shifts; collective welfare; allowances for loyalty, and so forth.


CHAPTER III

Procedures for Negotiation, Signing and Registration of
Collective Labour Agreements

Article 3

Collective labour agreements shall be negotiated and signed in accordance with article 45 and clause 1 of article 46 of the Labour Code and the following procedures:

1. The party which wishes to negotiate and enter into a collective labour agreement must inform the other party in writing of the agenda for the proposed negotiations.

The agenda for the negotiations on the part of the employees shall be determined by the executive committee of the trade union of the enterprise or interim trade union organization.

2. A party which is requested to participate in negotiations must comply with the request and organize a meeting with the requesting party in order to agree on the time and place for negotiations and the number of representatives participating therein.

3 The employer shall be responsible for organizing the negotiations between the two parties.

The outcome of the negotiations shall be the basis for the preparation of the collective labour agreement of the enterprise or unit.

4. The trade union of the enterprise or the interim trade union organization shall collect recommendations from the employees on the contents of the collective labour agreement.

Where more than fifty (50) per cent of the members of the labour collective approve, the two parties shall proceed with the signing of the collective labour agreement.

5. Collective labour agreements must be made in the general form stipulated in the appendix attached to this Decree.

Article 4

The recommendations of the employees in relation to the contents of the collective labour agreement shall be collected by way of signatures and votes.

The final recommendations must be recorded in writing, stating clearly the number of participants, the number of persons consenting, the number of persons opposing, the terms which were not agreed on, and the percentage of opposition. The record must be signed by a representative of the trade union of the enterprise.

When registering the collective labour agreement with a labour office, the record of the recommendations of the labour collective must be attached.

Article 5

The registration of collective labour agreements pursuant to article 47 and clause 3 of article 48 of the Labour Code shall be provided for as follows:

1. Within ten (10) days from the date on which a collective labour agreement is signed, the employer must submit it for registration to the Department of Labour, War Invalids and Social Affairs in the province or city under central authority in which the head office of the enterprise is located.

2. Enterprises in export processing zones and industrial zones must submit the collective labour agreement to the management board of the export processing zone or industrial zone for registration with the Department of Labour, War Invalids and Social Affairs in the province or city under central authority in which the head office of the management board is located.

3. Within fifteen (15) days from the date of receipt of the collective labour agreement, the relevant provincial or municipal Department of Labour, War Invalids and Social Affairs must consider and notify parties in writing of the registration. Where the collective labour agreement contains terms which are contrary to the law, such terms must be clearly identified and the parties must be instructed in relation to amendments and re- registration.

Article 6

In cases of mergers in accordance with clause 1 of article 52 of the Labour Code, the signed collective labour agreement shall be dealt with as follows:

1. Where, after a merger, there are no changes in the functions, powers and organizational structures of the merged enterprises, the signed collective labour agreements shall remain valid until their expiry dates or until a new collective labour agreement is signed.

2. Where, after a merger, there are changes in the functions, powers and organizational structures of the merged enterprises, the signed collective labour agreements shall become invalid and the parties must negotiate a new collective labour agreement within six months from the date of the merger.


CHAPTER IV

Implementing Provisions

Article 7

This Decree shall be of full force and effect as of 1 January 1995. All previous provisions on collective labour agreements are hereby repealed.

Collective labour agreements which have been signed or are currently being applied and which contain terms inconsistent with the Labour Code or this Decree must be amended no later than six months after the date on which this Decree comes into full force. Any terms and conditions to be amended or supplemented must be negotiated, signed and re-registered in accordance with the procedures stipulated in the Labour Code and this Decree.

Article 8

The Ministry of Labour, War Invalids and Social Affairs shall, in conjunction with the Vietnam General Confederation of Labour, be responsible for organizing the signing of collective labour agreements for each particular industry on an experimental basis and for submitting to the Government provisions on collective labour agreements for each particular industry.

Article 9

Ministers, heads of ministerial equivalent bodies, heads of Government bodies, and chairmen of people's committees of provinces and cities under central authority shall be responsible for the implementation of this Decree.


On behalf of the Government
Prime Minister


VO VAN KIET
__________

Appendix

MODEL FORM OF COLLECTIVE LABOUR AGREEMENT

(Issued with Decree 196-CP dated 31 December 1994 of the Government)

Name of Enterprise:

Address:

COLLECTIVE LABOUR AGREEMENT

In order to ensure the rights and obligations of the parties in the employment relationship, we:

1. The representative of the employer: (Full name and position)

2. The representative of the employees: (Full name, position and address)

have agreed on a collective labour agreement with the following articles:

I. GENERAL PROVISIONS

Comprising articles on:

Parties;

Duration of agreement;

Undertaking of employer to ensure the right to organize trade union activities.

II. CONTENTS OF COLLECTIVE LABOUR AGREEMENT

Comprising articles on:

Employment and employment guarantees;

Working hours and rest breaks;

Wages, bonuses and salary allowances;

Work limits;

Occupational safety and hygiene;

Social insurance;

Other items as required by the parties.

III. IMPLEMENTING PROVISIONS

Comprising articles on:

Undertaking to observe and comply with the agreement;

Methods to resolve labour disputes;

Validity of the collective labour agreement and termination of all regulations of the enterprise which are inconsistent with the collective labour agreement.

This Collective Labour Agreement is signed at .............................

on ......date...... and is registered at ......................


Representative of Employees Representative of Employer

(Position) (Position)


Signature and seal Signature and seal