In the modern labor environment, protecting employees’ rights and interests is one of the core factors in maintaining harmonious, stable, and progressive labor relations. Employee representatives play an important role between the collective workforce and employers, contributing to the development of harmonious labor relations and the protection of employees’ legitimate rights and interests.

I. Role of employee representatives

Employee representatives serve as a connection between employees and employers in dialogue, negotiation, and the protection of the lawful and legitimate rights and interests of the collective workforce. Such a role becomes increasingly important when labor disputes arise or when negotiations are required on matters such as wages, working hours, benefits, and working conditions.

The presence of an employee representative organization at the workplace helps employees feel secure in their contributions, while also assisting enterprises in building a transparent, fair, and stable working environment.

II. Legal provisions on employee representatives

1. Who are employee representatives?

Clause 3, Article 3 of the Labor Code 2019 provides: An employee representative organization is an organization established on a voluntary basis by employees within an employing unit for the purpose of protecting the lawful and legitimate rights and interests of employees in labor relations through collective bargaining or other forms in accordance with labor laws. Employee representative organizations include grassroots trade unions and employee organizations within enterprises.

Accordingly, employee representatives are lawfully established organizations that represent and protect the lawful and legitimate rights and interests of employees in labor relations with employers under current law, including grassroots trade unions and employee organizations within enterprises.

2. Is it mandatory for a company to have an employee representative?

Pursuant to Clause 1, Article 6 of the Law on Trade Unions 2012: Trade unions are established on a voluntary basis and organized and operated in accordance with the principle of democratic centralism.

Accordingly, enterprises are not required to establish trade unions as employee representative organizations. Trade unions are established on a voluntary basis in accordance with the above provision.

3. Does a company violate the law if it does not have an employee representative?

Under Clause 1, Article 6 of the Law on Trade Unions 2012, trade unions are established on a voluntary basis; therefore, companies are not required to establish trade unions. However, if a company obstructs, causes difficulties, or unlawfully interferes with the establishment and operation of employee representative organizations, it may be subject to administrative sanctions in accordance with law.

4. Conditions for establishing an employee representative organization at the grassroots level

Pursuant to Clause 1, Article 13 of the Charter of the Vietnam Trade Union promulgated together with Decision No. 174/QĐ-TLĐ of 2020, the conditions for establishing a grassroots trade union are as follows: A grassroots trade union is a basic organization of the Vietnam Trade Union, established in one or more lawfully operating employing units, when there are at least five (05) union members or five (05) employees who submit voluntary applications to join the Vietnam Trade Union.

Accordingly, to establish an employee representative organization at the grassroots level, it is necessary to have at least five (05) union members or five (05) employees who voluntarily apply to join the Vietnam Trade Union.

5. Rights and obligations of employee representatives under the law

Pursuant to Article 15 of the Charter of the Vietnam Trade Union promulgated together with Decision No. 174/QĐ-TLĐ of 2020, grassroots trade unions have the following duties and powers:

  • To disseminate and mobilize union members and employees to implement the Party’s guidelines and policies, State policies and laws, citizens’ obligations, and resolutions and policies of the Trade Union;
  • To represent, care for, and protect the lawful and legitimate rights and interests of union members and employees in accordance with State law;
  • To supervise or participate in supervising the implementation of policies, laws, internal rules, regulations, collective labor agreements, and other matters related to the lawful and legitimate rights and interests of union members and employees in accordance with law;
  • To coordinate with employers in developing and implementing grassroots democracy regulations; caring for the material and spiritual life of employees; improving professional qualifications and vocational skills; improving working conditions; providing health care for employees; and organizing emulation movements and cultural and social activities;
  • To organize the implementation of resolutions of trade unions at all levels; comply with the Charter of the Vietnam Trade Union; organize training and capacity building for union members and trade union officials; manage and use trade union finances and assets in accordance with regulations; conduct membership development and management; build strong grassroots trade unions; participate in building harmonious, stable, and progressive labor relations at the workplace; contribute to the sustainable development of agencies, units, and enterprises; and participate in building a clean and strong Party and people’s government.

The Presidium of the Vietnam General Confederation of Labour provides detailed guidance on the duties and powers applicable to each type of grassroots trade union.

III. Certain questions regarding employee representatives

1. In which cases must a company consult or work through the employee representative organization?

Trade unions are organizations that represent and protect the lawful and legitimate rights and interests of employees. Accordingly, in certain cases prescribed by the Labor Code 2019, employers must consult or reach agreement with the employee representative organization at the grassroots level (if any), such as:

  • Developing a labor utilization plan in cases of changes in structure, technology, or for economic reasons (Article 42);
  • Developing wage scales, wage tables, wage payment regulations, and bonus schemes (Article 93);
  • Deciding on bonus regulations (Article 104);
  • Determining annual leave schedules (Article 113);
  • Issuing internal labor regulations or amending and supplementing internal labor regulations (Article 118).

2. May employees seek assistance from employee representative organizations to claim their rights?

Pursuant to Article 10 of the Law on Trade Unions 2012, trade unions have the right and responsibility to represent and protect the lawful and legitimate rights and interests of employees.

Accordingly, employees have the full right to approach trade unions for consultation and support, and to request that trade unions represent them in protecting their lawful and legitimate rights and interests in labor relations with employers in accordance with law.

3. When developing a wage table, must the employer consult the employee representative organization at the grassroots level?

Clause 3, Article 93 of the Labor Code 2019 provides: When developing wage scales, wage tables, and labor norms, employers must consult the employee representative organization at the grassroots level where such an organization exists.

Accordingly, when developing wage tables for employees, enterprises are required to consult the employee representative organization at the grassroots level where such an organization exists.

4. May employee representatives participate in the collective bargaining process?

Pursuant to Article 65 of the Labor Code 2019 : Collective bargaining is the negotiation and agreement between one party being one or more employee representative organizations and the other party being one or more employers or employer representative organizations, aimed at establishing working conditions, regulating relations between the parties, and building progressive, harmonious, and stable labor relations.

Accordingly, employee representative organizations are one of the parties participating in collective bargaining under the above provision.

5. May a company refuse to work with employee representatives?

Pursuant to Clause 1, Article 9 of the Law on Trade Unions 2012, prohibited acts include obstruction or cause of difficulties in the exercise of trade union rights.

Employers are obliged to cooperate with and create favorable conditions for employee representative organizations at the grassroots level to perform their functions and duties. Refusal to work with trade unions may be deemed an act of obstruction or interference with the exercise of trade union rights.

IV. Legal advisory services on employee representatives

The above is NPLaw’s article on employee representatives under current regulations. With a team of experienced lawyers and legal specialists, NPLaw provides reputable and professional legal services, ensuring optimal protection of the lawful rights and interests of our valued clients. Should you require legal assistance, please contact NPLaw for consultation and support.