Question:
Is a company required to establish a trade union? If the company does not establish a trade union, is it still required to pay trade union fees?
Answer:
Pursuant to Article 6 of the Law on Trade Union 2012, which provides as follows:
“Article 6. Principles of organization and activities of trade unions
1. Trade unions shall be established on a voluntary basis and organized and operate under the principle of democratic centralism.
2. Trade unions shall be organized and operate in accordance with the Charter of the Vietnam Trade Union, in conformity with the guidelines, policies of the Party, and the laws of the State.”
Accordingly, the establishment of a trade union is voluntary; therefore, a company is not required to establish a trade union.
A company that does not establish a trade union is still required to pay trade union fees as prescribed in Article 4 of Decree No. 191/2013/NĐ-CP:
“Article 4. Entities required to pay trade union fees
Entities required to pay trade union fees under Clause 2 Article 26 of the Law on Trade Union include agencies, organizations, and enterprises, regardless of whether such agencies, organizations, and enterprises have established grassroots trade unions, including:
1. State agencies (including People’s Committees of communes, wards, and towns), units under the People's armed forces.
2. Political organizations, socio-political organizations, socio-political–professional organizations, social organizations, and socio-professional organizations.
3. Public and non-public service units.
4. Enterprises of all economic sectors established and operating under the Law on Enterprises and the Law on Investment.
5. Cooperatives and unions of cooperatives established and operating under the Law on Cooperatives.
6. Foreign agencies and organizations, international organizations operating in the territory of Vietnam related to the organization and activities of trade unions, and foreign parties’ executive offices in business cooperation contracts in Vietnam that employ Vietnamese workers.
7. Other organizations employing workers in accordance with labor laws.”
The contribution level for trade union fees is
“2. Trade union fees shall be paid by agencies, organizations, and enterprises at the rate of 2% of the salary fund used as the basis for paying social insurance premiums for employees,”as prescribed in Clause 2 Article 26 of the Law on Trade Union 2012.
Consultation: Labor and Employment Services
