Decree No. 196-CP detailing and guiding the implementation of certain provisions of the Labor Code regarding collective labor agreements

DECREE

Detailed regulations and guidance on implementing certain provisions of the Labor Code regarding collective agreements and collective labor.

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;
Based on the Labor Code dated June 23, 1994;
At the proposal of the Minister of Labor, Invalids and Social Affairs,

DECREE:

PART I
OBJECTS AND SCOPE OF APPLICATION OF COLLECTIVE LABOR AGREEMENTS

Article 1.

1- The objects and scope of application of collective labor agreements under Articles 2, 3, 4, and 44 of the Labor Code are stipulated as follows:

Enterprises and production and business establishments, services belonging to other economic sectors;

Enterprises belonging to other economic sectors, organizations, and individuals who lease or employ ten or more workers;

Foreign-invested enterprises; enterprises located in export processing zones, industrial parks;

Foreign agencies, organizations, or international organizations in Vietnam that lease or employ ten or more Vietnamese workers, except where international treaties to which the Socialist Republic of Vietnam is a party provide otherwise;

Independent accounting organizations and services of administrative and public service units may apply certain provisions of Article 2 of this Decree for negotiating and signing collective labor agreements.

2. Objects and scope not subject to collective labor agreements:

Civil servants and employees working in state administrative and public service agencies;

People working in people's mass organizations, political, and social organizations;

People working in special enterprises of the People's Army, Public Security Forces; officers, non-commissioned officers, and soldiers in the People's Army and Public Security Forces.

PART II
CONTENT OF COLLECTIVE LABOR AGREEMENTS

Article 2.

1. The main contents of collective labor agreements according to Clause 2 of Article 46 of the Labor Code include:

a) Employment and job security: measures to ensure employment; types of contracts for different categories of workers or jobs; situations leading to termination of labor contracts; severance pay, unemployment benefits, temporary layoff benefits; improving skills and retraining when technology or production organization changes; principles and time limits for temporarily transferring workers to other jobs.

b) Working hours and rest periods: regulations on daily and weekly working hours; shift scheduling; appropriate rest breaks for different occupations and tasks; weekly holidays, public holidays; annual leave including travel time; leave for personal matters; principles and circumstances for overtime work.

c) Wages, wage supplements, bonuses: minimum wages or average wages (monthly, daily, or hourly); wage scales applicable in enterprises; measures to ensure actual wages, methods to adjust wages when market prices fluctuate; principles of wage payment (time-based, piece-rate, or lump-sum); principles of establishing and adjusting unit wage rates; principles and conditions for wage grade promotion; types of wage supplements; monthly wage payment times; payment for annual leave, travel expenses; wages for overtime hours; bonuses (one-off, monthly, year-end, quality, profit-sharing) and principles of bonus distribution (may be accompanied by regulations).

d) Work quotas: principles, methods for establishing, testing, issuing, and changing quotas; types of quotas for different categories of workers; average and advanced quotas applied in enterprises; measures for cases where quotas are not met; principles of combined allocation of labor and materials (if applicable).

đ) Occupational safety and health: measures to ensure occupational safety and health; standards and provision of protective equipment; material allowances; measures to improve working conditions; compensation for work-related accidents and occupational diseases (may be accompanied by regulations).

e) Social insurance: provisions on the responsibilities and rights of employers and workers in contributing, collecting, and paying social insurance benefits.

2. In addition to the above contents, the parties may agree on additional items such as: procedures for resolving labor disputes; mid-shift meals; collective welfare; condolences for funerals, weddings...

CHAPTER III
PROCEDURES FOR NEGOTIATING, SIGNING, AND REGISTERING COLLECTIVE LABOR AGREEMENTS

Article 3.- Negotiating and signing collective labor agreements according to Article 45 and Clause 1 of Article 46 of the Labor Code shall be carried out as follows:

1. The party proposing to negotiate and sign a collective agreement must notify the other party in writing about the negotiation contents.

The negotiation contents of the workers' side are proposed by the Trade Union Branch Committee or the provisional trade union organization.

2. The party receiving the proposal must accept the negotiation and proactively meet with the proposing party to agree on the time, place, and number of representatives participating in the negotiation.

3. The employer is responsible for organizing both sides to conduct negotiations.

The results of the negotiation serve as the basis for drafting the enterprise's or unit's collective labor agreement.

4. The Trade Union Branch or provisional trade union organization organizes the collection of opinions from the workers' collective on the content of the collective labor agreement.

If more than 50% of the workers in the workers' collective agree, the two parties will proceed to sign the collective labor agreement.

5. The collective labor agreement must be drafted according to a unified model.

Article 4.- The process of collecting opinions from the workers' collective on the content of the collective labor agreement is conducted through signature or voting.

The result of the opinion collection must be recorded in a protocol specifying the total number of people surveyed, the number agreeing, the number disagreeing, the clauses not agreed upon, and the percentage of disagreement. The protocol must have the signature of the representative of the Trade Union Branch Committee.

When registering the collective labor agreement with the labor authority, the protocol collecting opinions from the workers' collective must be attached.

Article 5.- The registration of collective labor agreements according to Article 47 and Clause 3 of Article 48 of the Labor Code is stipulated as follows:

1. Within ten days from the date of signing the collective labor agreement, the employer must submit a copy of the collective labor agreement to the Department of Labor, Invalids, and Social Affairs of the province or centrally-administered city where the enterprise or organization is headquartered for registration.

2. Enterprises under export processing zones and industrial parks must submit collective labor agreements to the Management Board of such zones for registration with the Department of Labor, Invalids and Social Affairs of the province or centrally governed city where the Management Board's headquarters is located.

3. Within fifteen days from the date of receipt of the collective labor agreement, the Department of Labor, Invalids and Social Affairs of the province or centrally governed city shall examine and notify in writing both parties about the registration. If there are provisions in the collective labor agreement that contravene the law, they shall be identified and guidance provided for both parties to amend and re-register.

Article 6.- In the case of enterprise mergers pursuant to Clause 1 of Article 52 of the Labor Code, the collective labor agreements already signed shall be handled as follows:

1. If after the merger, member enterprises do not undergo changes in functions, powers, and organizational structure, the collective labor agreements that have not yet expired will remain valid until their expiration or until new collective labor agreements are signed.

2. If after the merger, member enterprises undergo changes in functions, powers, and organizational structure, the previously signed collective labor agreements will no longer be enforceable, and the parties must negotiate to sign new collective labor agreements within six months from the date of the merger.

PART IV
IMPLEMENTING PROVISIONS

Article 7.- This Decree takes effect from January 1, 1995, and abolishes previous regulations on collective labor agreements.

Existing collective labor agreements that are being implemented and contain provisions contrary to the Labor Code and this Decree must be amended within six months from the effective date of this Decree. The provisions that need to be amended or supplemented must be negotiated, signed, and registered again according to the procedures stipulated in the Labor Code and this Decree.

Article 8.- The Ministry of Labor, Invalids and Social Affairs shall cooperate with the Vietnam General Confederation of Labor to pilot the signing of industry-wide collective labor agreements and report to the Government for regulations on industry-wide collective labor agreements.

Article 9.- The Minister, Heads of Ministries equivalent to Ministries, agencies under the Government, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decree./.