Get to know your new Labour Code 2019

Workplace Dialogue
and Collective
Bargaining

Viet Nam has modernized its Labour Code to better protect workers’ rights, reduce bureau-
cracy for employers, and help support the Government’s drive for international integration,
economic growth and prosperity for all. The new law, which was passed by the National
Assembly in November 2019, is the result of extensive consultations with experts, national
and local stakeholders, and the public at large. It will come into effect in January 2021.

This information sheet introduces the rules regulated in 2019LC on workplace dialogue and
June 2020 collective bargaining.
What is workplace dialogue under the Labour Code
2019?
Box 1: When must dialogue be organised?
Workplace dialogue is a process that involves employ-
In the Labour Code, employers must organise workplace
ers and workers and/or workers’ representative organi-
dialogue in as follows:
sations (WROs) at a workplace, sharing information,
consulting, discussing and exchanging opinions on
1. Periodic dialogue (at least once a year)
matters of rights and interests or other mutual
2. Dialogue at the request of either or both parties
concerns of the two parties.
3. Dialogue on certain matters as required under the
Labour Code. These include:
The objective of this dialogue is to ‘strengthen under- (i) Where the employer intends to terminate employ-
standing, cooperation and joint efforts to reach mutu- ment due to workers’ poor performance,
ally beneficial solutions.’ The Labour Code requires (ii) When employer develops labour use proposal in case
employers to organise workplace dialogues in at least of changes in structure, technology or for economic
three circumstances (see Box 1). reasons
(iii) In the process of developing a wage scale, wage
In the Labour Code, employers are encouraged to table and labour norms
conduct dialogue on a range of issues, in addition to (iv) Prior to deciding on bonuses to be paid to workers
those that are compulsory. These may include the (v) Prior to issuing, amending or supplementing internal
business and production situation of the employer; work regulations
implementation of the employment contract, collective (vi) Prior to temporarily suspending a worker for certain
bargaining agreement, internal rules, regulations and violations of labour discipline.
other commitments and agreements at the workplace;
working conditions; or matters concerning the relation- The Government will provide implementing regulations
ship between WRO(s) and the employer. on the organization of dialogue and implementation of
grassroots democracy at the workplace.
What is collective bargaining?

Collective bargaining is the process of negotiating and

reaching agreement between one or more workers’
representative organization on one side and one or
Why make a CBA and what is its status?
more employers or employers’ representative organiza-
tions on the other side. The purpose of collective
A CBA is a collective contract that can incorporate a
bargaining is ‘to establish working conditions, regulate range of terms that meet the parties’ specific needs or
the relations between involved parties, and to develop objectives. For example, workers may negotiate to
advanced, harmonious and stable labour relations.’ The reduce normal hours of work (in comparison to that set
Labour Code makes clear that collective bargaining in the Labour Code), or additional leave, flexible working
must be carried out according to the principles of arrangements, and extra benefits such as employ-
voluntariness, cooperativeness, good faith, equality, er-funded lunches or special travel allowances. The
openness to the public and transparency. employer, in contrast, may seek agreement to working a
different shift pattern or a general commitment on
The agreement reached between the parties to collec- overtime patterns.
tive bargaining is called a collective bargaining
agreement (CBA). A CBA is a legally binding agreement A CBA cannot contain terms that are contrary to the law.
negotiated between an employer (or a group of A CBA should contain terms that are more beneficial to
employers) and one or more workers’ representative workers than the minimum standards prescribed in the
organisations (WROs). law. Where a CBA comes into effect and sets lower
normal working hours than those in the individual
The Labour Code recognises three different types of worker’s contract or in internal regulations, the individu-
CBAs: al cntracts and regulations must be amended to align
• Enterprise-level CBAs with the CBA.
• Multi-employer CBAs
The terms of a CBA are legally binding on both parties
• Sectoral-level CBAs.
and, in the event (or belief) of non-compliance, either
party can formally request the latter to fully comply with
Each of these forms of CBA are subject to different
the agreement, and, in the absence of a satisfactory
rules and processes, particularly relating to who
resolution, either party has the right to raise a collective
represents the parties and who is consulted/ or has the labour dispute in accordance with the law. See further
chance to vote on proposed CBAs. This information Information Sheet: Labour Dispute Resolution.
sheet focuses mainly on the process for negotiating an
enterprise-level CBA, although some information
relating to CBAs at other levels is included.
What matters may be subject to collective bargaining? Who can represent workers in enterprise-level
collective bargaining?
The bargaining parties may choose to enter into
collective bargaining on a wide range of matters that The employer and the WRO(s) agree on the number of
are of concern to either party. participants in bargaining process. Each party (the
WRO(s) and the employer) has the right to determine
The Labour Code lists the following suggested issues: their own bargaining representatives.
• Wages, wage-based additional payments, wage
increase, bonuses, meal breaks and other policies Where there is a most representative WRO and one or more
• Work norms, working hours and rest times, overtime other WROs chose to participate in the collective bargain-
work, shift breaks ing, the most representative WRO retains the right to
• Employment security determine the number of representatives from each
• Occupational health and safety WRO. Where there is no most representative WRO and two
• Implementation of internal work regulations or more WROs join together for collective bargaining, the
• Conditions and facilities for WROs WROs should agree upon the number of representatives
• Relations between the employer(s) and the WRO(s) from each organisation to participate in the bargaining.
• Mechanisms for the prevention and settlement of
labour disputes If no agreement can be reached, the number of repre-
• Issues relating to the promotion of gender equality, sentatives is to be determined on a proportionate
including maternity protection, annual leave and the basis. Each party has the right to invite their higher-lev-
prevention of violence and sexual harassment at the el organisations (if they have one) to represent them in
workplace. the bargaining process.

The process for reaching an enterprise-level CBA

Stage 1: Employer or WRO Parties agree on a Parties commence

Com- requests that collective commencement date bargaining
mence- bargaining commence and venue
ment of Within 7 days of receipt Within 30 days of
bargain- of initial request to receipt of initial request
ing bargain to bargain

Stage 2: Minutes of all negotiation meetings must Parties negotiate in good faith for a
Bargain- be taken, specifying issues agreed upon collective agreement
ing and outstanding issues.
Minutes must be signed by representa- This bargaining period must not exceed
tives of both parties and by the drafter of 90 days from receipt of initial request to
the minutes. bargain.

Stage 3: WRO(s) asks ALL workers in the enterprise to endorse draft If majority (over 50%) of
Approval CBA (by voting). all workers endorse the
and draft agreement, the
submis- Time, venue and method of voting to be determined by lawful representatives
sion WROs but it must not adversely impact normal business of the two parties may
operations. sign the agreement.

Within 10 days of signing the CBA, the employer must Each party must receive
submit a copy to State management agency in charge of a copy.
labour at provincial level
Employer makes CBA
known to workers.
Multi-employer and sectoral collective bargaining • Make the signed CBA known to all workers
• Within 10 days of signing a CBA, submit a copy to the
Employers and WROs may choose to collectively State management agency in charge of labour at the
bargain on a multi-employer or sectoral basis. The provincial level.
principles applying to, and subjects for, collective • Cover all expenses relating to the organisation of
bargaining at these levels are the same as at enterprise negotiation meetings and the signing, amendment,
level. However, subject to their conditions, the bargain- supplementation, submission and announcement of a CBA.
ing parties may decide on the process they follow for
collective bargaining. The representatives who take WRO rights and obligations during collective
part in multi-enterprise collective bargaining are bargaining
determined by the parties involved on a voluntary and
negotiated basis. However, at a sectoral level, the The Labour Code sets out important rights and obliga-
sectoral trade union(s) and employers’ organization(s) tions for WRO(s) during the bargaining process. A
in the sector make that determination. WRO:
• Must not refuse an employer’s request to commence
The Labour Code 2019 suggests that multi-employer bargaining;
collective barganing be undertaken via a Collective • Has the right to arrange discussions with, and seek
Bargaining Council, which may be established by the input from, the workers concerned pertaining to
Department of Labour, Invalids and Social Affairs matters of, approach to and expected results from
(DOLISA) at the provincial level upon the request of the collective bargaining. The time, venue and method of
bargaining parties (multiple employers and WROs). It is such discussions and consultations may be determined
to be comprised of a Chair-person (as agreed by by the WRO(s) but must not adversely impact the firm’s
parties), representatives of the bargaining parties; and normal business operations;
a DOLISA representative. A Collective Bargaining • Must widely disseminate the minutes of collective
Council ceases operation following the signing of the bargaining negotiations to workers for discussion and
multi-employer CBA or other agreement by the parties. solicitation of opinions;
• Is responsible for seeking worker endorsement of a
draft CBA.

What if the parties cannot reach agreement or a

dispute arises during bargaining?

The Labour Code sets out the dispute resolution

procedures to be followed when issues arise during the
bargaining process, for example:
• where WROs disagree as to which is the most repre-
sentative;
• where an employer unlawfully intervenes in, or manip-
ulates, the establishment or operation of a WRO; or
• where the parties fail to reach an agreement within
the set time period.

Employer obligations during collective bargaining The Labour Code also sets out procedures that must be
followed by a WRO (or WROs) prior to the taking of
The Labour Code imposes important obligations on strike action. See further Information Sheet: Labour
employers during the bargaining process. An employer Dispute Resolution.
must:
• Not refuse a WRO’s request to commence bargaining
• At least 10 days before the first negotiation meeting,
and on the request of the WRO(s) participating in
bargaining, provide information in order to enable
meaningful collective bargaining. This includes infor-
mation on the business’ operations and other relevant
issues. The employer is not required to reveal business
or technological information of a confidential nature.
• Arrange the time, venue and other necessary condi-
tions for collective bargaining sessions. The time that
workers’ representatives spend in negotiation meetings
should be remunerated at the worker’s normal pay rate.
• Refrain from hassling, obstructing or intervening in:
o WRO(s) discussions and consultations with workers
concerning the bargaining process
o the process of seeking endorsement (by voting)
conducted by the WROs.
Who does a CBA apply to?

Under the Labour Code 2019, once an enterprise-level

CBA comes into operation, it applies to the employer
and all workers of the enterprise. This includes workers
that are employed by the employer after the CBA has
taken effect.

Sectoral and multi-employer-level CBAs apply to all

employers and workers of the enterprises covered by
those agreements.

Implementation of enterprise-level CBAs

A CBA comes into effect on the date stipulated in the

agreement or, where no date is stipulated, on the date
the agreement is signed. A CBA may have a duration of
between 1 and 3 years.

Where any terms in a CBA are more favourable to

workers than those stipulated in employment contracts
concluded prior to the CBA commencing operation, the
terms in the CBA prevail.

Internal work regulations that are inconsistent with a

CBA must be amended.

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For more information

This information sheet provides information of a general nature. All of the above matters are detailed in the Labour Code. See
Chapter I: General Provisions; Chapter III: Employment Contractd; Chapter V: Workplace Dialogue, Collective Bargaining, Collective
Bargaining Agreements; Chapter VIII: Labour Disciplinary Regulations and Responsibilities Regarding Equipment; and Chapter XIV:
Resolution of Labour Disputes.

This is a product of the New Industrial Relations Framework project. Funding for the New Industrial Relations Framework
project is provided by the United States Department of Labor under cooperative agreement number IL- 29690-16-75-K-11. One
hundred percentage of the total costs of the project or program is financed with Federal funds, for a total of 5.1 million dollars.
This material does not necessarily reflect the views or policies of the United States Department of Labor, nor does mention of
trade names, commercial products, or organizations imply endorsement by the United States Government.

ILO Country Office for Viet Nam

304 Kim Ma Street, Hanoi, Viet Nam Website: www.ilo.org/hanoi
Tel: +84 24 38 500 100 Facebook: Vietnam.ILO
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