Circular No. 2-LĐ-TT explaining and guiding the implementation of the provisional regulations governing the relationship between workers and business owners in private enterprises.

CIRCULAR

Explanation and guidance on the implementation of the temporary regulations governing the relationship between workers and employers in private enterprises.

THE MINISTER OF LABOR

Respected Chairmen of the Administrative Committees of the Northern Provinces of Vietnam, 3, 4, Left Bank, Hong Quang, Hanoi, and Haiphong

Directors and Heads of Labor Departments

Under the colonial feudal era, Vietnam's industry and commerce were suppressed and could not develop. During several years of war, they collapsed.

Conversely, under the regime of the Democratic Republic of Vietnam, industry and commerce are protected, supported, and guided to serve the people's livelihoods. Since peace was restored, many sectors of industry and commerce have been revived, and some traders have shifted their business production to serve the interests of the people.

The future of industry and commerce is very promising. As the North has been completely liberated, the domestic market is not dominated by imperial goods, land reform will be completed, farmers' purchasing power will increase, construction efforts will expand, and trade with foreign countries will grow, definitely boosting industrial and commercial activities.

The development of industry and commerce will create more conditions to improve living standards for the people, consolidate the North as a strong foundation for national reunification.

Implementing the government's policy of protecting industry and commerce, state trading agencies have made efforts to assist small-scale industrialists and artisans, such as providing raw materials, placing orders, buying products, etc. Thanks to this, many private production sectors have been revived and are developing. Labor agencies have also made efforts in implementing the government's labor policies, mediating conflicts between workers and employers.

However, there are still many clashes over interests that harm the recovery of the national economy.

Now, the Government promulgates the "Temporary Regulations"with the aim of regulating the relationship between workers and employersaccording to the rights and responsibilities assigned to both parties, helping workers and employers to negotiate their interests based on these regulations, to unite in production and serve the country's interests.

These regulations are established based on the principle:

"Both public and private sectors are cared for"

"Workers and employers benefit equally."

In all cases, such as negotiating contracts to resolve disputes between state-owned enterprises and private enterprises, they must follow the above principles.

For a long time, due to unclear rights and responsibilities, workers and employers have not truly united in production. Workers' rights have not been guaranteed; employers have not been fully confident in business and production, nor have they focused on improving production.

Now, it is necessary to adjust the relationship between workers and employers appropriately, ensuring the interests of both sides so that everyone can be enthusiastic and actively contribute to the recovery and development of the economy, realizing the program of the Fatherland Front.

To implement the provisions stipulated in the regulations, relevant organizations have the responsibility to guide and educate workers and employers to thoroughly understand the government's policies, to be sincere, democratic, united, and negotiate satisfactorily to resolve the interests of both sides, jointly sign contracts, and strictly adhere to the terms agreed upon, in accordance with the content of the temporary regulations.

CONTENT OF THE TEMPORARY REGULATIONS

The temporary regulations outline principles regarding the following issues:

1. Rights and responsibilities of workers and employers:

The regulations clearly define the rights and responsibilities of workers and employers in Chapter II (Articles 2 and 3).

Regarding workers:

Workers' rights have been defined, with the fundamental right being the right to organize trade unions and participate in political, cultural, and social activities.

Previously, employers did not recognize this, often hindering workers from engaging in trade union and political activities. This is incorrect. The working class in Vietnam has long suffered to gain the right to organize trade unions and engage in political activities. The Democratic Republic regime fully guarantees these rights for workers, whether they work in state-owned or private enterprises.

Trade unions unite, educate workers, protect their political rights, and lead them in production competitions. This benefits production and the national economy. Therefore, employers should welcome rather than fear the establishment of trade unions within their enterprises.

Regarding employers:

According to the law and the government's economic policy, business owners fully control their enterprises, such as managing the enterprise, distributing workers, using assets, borrowing workers, and reducing the workforce.

Previously, due to enemy propaganda, many businesses were hesitant to operate, fearing loss of control over their enterprises, and workers were not proactive in production. But increasingly, people recognize the government's protection of industry and commerce and the bright prospects for the industry and commerce sector.

The temporary regulations ensure the rights of workers and employers while clearly defining their responsibilities towards production, aiming to serve production.

Contracts between workers and employers and factory rules:

Pursuant to the provisions of the interim charter, workers and factory owners shall convene negotiation meetings to agree on specific issues related to both parties. Where trade unions exist, they shall participate in these meetings. (The Ministry of Labor will issue a circular to guide the signing of contracts). Each factory must establish internal regulations. These internal regulations shall be drafted by workers and factory owners concerning labor discipline, accident prevention, safety, and order within the factory. Contracts and internal regulations serve to ensure production and protect the legitimate rights of both the owner and the worker. Therefore, labor authorities must review signed contracts and factory internal regulations to adhere to government policy.

2. Borrowing workers, reducing workforce, taking leave:

The freedom of employers to borrow workers and the right of workers to work must be exercised reasonably so as not to harm production or the interests of either party. The Commerce and Industry Authority is well aware of which industries are developing, which need assistance, which require encouragement, and which need redirection. Thus, when an employer wishes to reduce the workforce, they must give prior notice of 15 days. Workers who wish to terminate their employment must also give prior notice of 15 days. The charter strictly regulates the reduction of workforce, primarily to prevent employers from exploiting the high unemployment rate to reduce staff and hire others at lower wages, or because they are dissatisfied with the union activities or political activities of workers.

3. Night shift pay

Wages and allowances for workers shall be based on the production conditions and working conditions at each location, following the principle of mutual benefit. The principle is that wages must correspond to work performed. Only then can production be encouraged. However, it must also take into account the business and production situation of each industry. The labor authority will base its guidance on the general situation of each industry's production, the living conditions of workers, the demand for labor in the market, and the general wage situation to facilitate reasonable negotiations between workers and employers.

Wages originate from work, from the production results of each individual. If the work and performance are the same, wages must be equal, without distinction between men and women. Due to the efforts of workers, if the factory prospers, the owner must pay attention to improving the living conditions of the workers.

4. Working hours and rest days

To boost production, the health and strength of the workforce must be protected and nurtured. Therefore, working hours and rest days must be regulated, but based on the actual production circumstances of each industry. The standard working hours are from 8 to 10 hours. If additional hours beyond 10 are necessary, this must be agreed upon between workers and employers and reported to the labor authority. Overtime must be compensated, with the amount determined by mutual agreement. For retail shops, barber shops, restaurants, and handicrafts, working hours may follow local customs and practices agreed upon by workers and employers.

Regarding wages, the charter clearly states that regardless of the agreements made between employers and workers, such arrangements must be reported to the labor authority. This allows the labor authority to intervene if necessary, to protect the rights of workers and provide advice to both parties if deemed unfavorable to production.

5. Other benefits of workers such as sick leave, maternity leave, or injury leave, etc.

Specific cases mentioned in Articles 14, 15, 16, 17, 18, 19, 20, and 21 must be included in all contracts. When sick, workers are entitled to paid leave (including allowances) for up to 10 days. Maternity leave is also paid (including allowances). In case of workplace accidents, the employer must cover medical expenses and compensate accordingly. These are the benefits of workers. However, due to the varying production scales of different factories, the charter allows workers and employers to negotiate mutually beneficial terms.

Here, the guidance of trade unions and labor authorities plays a crucial role. Trade unions and labor authorities must understand the specific situations of all production sectors to provide appropriate advice to both parties. The Ministry of Labor must be regularly and fully informed to oversee the implementation across regions and avoid significant disparities. Gradually, through the proper adjustment of relations between workers and employers, production will be boosted, leading to further negotiations on necessary improvements for living conditions within the factory.

SCOPE AND METHODS OF IMPLEMENTATION OF THE CHARTER

The interim charter regulating the relationship between workers and factory owners applies to all workers and factory owners in industrial, transportation, commercial, and other enterprises. It also applies to foreign workers.

The provisions of the charter apply to factories using power machinery with seven or more workers and handicraft factories with twenty or more workers. For factories using less than the specified number of workers, the resolution of workers' rights and interests will depend on the specific circumstances of the factory and in accordance with the spirit of the charter, both parties shall negotiate and sign a contract.spirit of the charter, both parties shall negotiate and sign a contract.

Independent workers who cannot produce or operate alone and need to borrow one or two helpers or apprentices do not fall under the scope of this charter's implementation. For domestic helpers, traditional practices in the locality shall continue to be followed.As one individual cannot produce or operate alone and needs to borrow one or two additional people to assist with work or learn a trade, such cases are not within the scope of implementing this regulation. For domestic helpers, local customs shall continue to be followed.

To ensure strict compliance with the provisions stipulated in the charter, workers and factory owners shall employ a method of sincere, democratic, and united negotiation to appropriately address the rights of each party and jointly agree on the terms in the contract.through negotiation, honesty, democracy, and unityto appropriately address the interests of each party and mutually agree to sign a contract.

After signing, the collective contract must be approved by the labor authority and put into effect.

During implementation, if there are conflicts of interest, each party shall base themselves on the signed provisions to negotiate and resolve them. If the negotiations between the two parties do not reach a result, they will be referred to the local labor authority for mediation.arbitration mediation.If the labor authority has mediated but both parties or one of the parties do not agree, the labor authority will refer the matter to the Court for adjudication (in accordance with the Joint Decree of the Ministry of Labor and Justice No. 87-LĐ-TP dated August 16, 1955).

To implement the regulations correctly,it is necessary to guard against several tendenciesas follows:

1. Only considering their own immediate interests without regard for the interests of both parties and the long-term interests of the State and the people.

The Government's labor policy is to implement the principle that "both workers and employers benefit" to develop the economy and serve the welfare of the nation and the people. Implementing this principle requires benefiting both workers and employers, but at the same time, it must also benefit the entire state and the people.

If workers only consider their own interests, ignoring the actual production conditions of the employer, or conversely, if the employer only focuses on their own benefits, earning high profits while neglecting the living conditions of the workers, then the two sides cannot cooperate long-term, production will decline. On the other hand, if only the interests of workers and employers are considered without regard for the interests of the state and the people, and if the regulations do not follow the government's economic development policies, this would also be incorrect. If the goods produced are poor quality, sold at high prices, and raw materials are wasted, the people will suffer losses, the overall economy will suffer, and business will not flourish.

2. For the implementation of labor regulations, the labor authority does not see the primary responsibility of workers and employers to absorb the policy and comply strictly with the government's labor regulations.

The labor regulations issued by the government represent the rights and aspirations of workers and employers. Therefore, both employers and workers have the responsibility to absorb the policy and comply strictly with the government's regulations. Negotiation requires voluntary and self-awareness from both sides. There must be efforts to understand the interests of each side. Patience, honesty, and democratic discussion are required to achieve productive unity. Not every issue should be referred to the labor authority for mediation; negotiation and resolution by both parties is fundamental. The labor authority's duty is to disseminate, explain the government's regulations, guide implementation, and monitor compliance; it acts as a mediator only when negotiations fail to resolve issues.

3. Demanding specific detailed provisions with fixed levels applicable everywhere

First, it is necessary to clearly understand that the provisions stipulated in the regulations outline the main principles regarding rights, duties, and interests between the two parties, which workers and employers negotiate to resolve satisfactorily, benefiting both.

The principles set forth in the regulations are based on current production realities. When implementing, it is necessary to base regulations in contracts on the specific circumstances and conditions of each place. For example, the regulation stipulates regular working hours of 8 to 10 hours, which is the principle, but must be applied according to the specific conditions of each place. Some places may work 8 hours, others 9 or 10 hours, depending on the agreement reached by both parties.

TASKS OF THE LEVELS OF STATE AUTHORITY AND LOCAL LABOR AUTHORITIES

To properly implement the Party and Government's policies and the spirit of the temporary regulations on adjusting relations between workers and employers, the levels of state authority and local labor authorities have the following tasks:

1. Organize extensive study and dissemination of the Government's labor policy and the provisions stipulated in the temporary regulations so that cadres, workers, and business operators thoroughly absorb the Government's policy and voluntarily comply with it.

2. Work together with trade unions, the People's Front, and the Democratic Party to plan mobilization and guidance for workers and employers to negotiate honestly and democraticallyand implement the signed agreements strictly to strengthen the relationship of productive unity between the two sides and strive to restore and develop the economy.and strictly adhere to the terms agreed upon to strengthen the cooperative production relationship between both parties and strive to restore and develop the economy.

Pay attention to carefully investigate various types of enterprises to clearly identify which enterprises must implement the regulations. Choose which enterprises to lead first and which later.

3. Regarding specific issues such as wages, working hours, allowances, etc., they must diligently study carefully to provide correct guidance, not making decisions based solely on personal opinions. They must delve deeply into each issue, persuade workers and employers, and avoid acting on behalf of the masses or issuing bureaucratic orders.

4. Guard against tendencies that harm the interests of workers, while also preventing tendencies that hinder economic recovery.

5. During the process of workers and employers negotiating to sign contracts as well as during the implementation of the contracts, they must assist both parties to comply strictly with the regulations and the spirit of the policy outlined in the regulations.

6. Regularly draw lessons and provide constructive suggestions to improve the temporary regulations. Any difficulties encountered should be reported promptly to the Ministry.

Hanoi, January 13, 1956