Joint Circular No. 74/2003/TTLT/BTC-TLĐLĐVN guiding the method of collecting and remitting trade union funds for non-state enterprises.

JOINT CIRCULAR

GUIDELINES ON THE METHODS FOR COLLECTING AND PAYING UNION FEES FOR NON-GOVERNMENT ENTERPRISES
enterprises outside state ownership

Pursuant to Article 153 of the amended Labor Code dated April 2, 2002;

Pursuant to Clause 2 of Decision No. 1102/2002/QĐ-TTg dated November 19, 2002 of the Prime Minister on union fees for paying salaries to full-time trade union officers working at non-government enterprises;

To facilitate the trade union organizations in collecting sufficient union fees from non-government enterprises operating under the Enterprise Law, the Ministry of Finance and the Vietnam General Confederation of Labor Unions hereby provide specific guidelines as follows:

1. The establishment of trade union organizations in non-government enterprises shall be carried out in accordance with Article 153 of Chapter XIII - Trade Union of the amended Labor Code dated April 2, 2002, specifically as follows: In enterprises currently operating without a trade union organization, such organizations must be established within six months from the date the amended Labor Code takes effect. For newly established enterprises, trade unions must be formed within six months from the start of operations. Local trade unions or industry-level trade unions have the responsibility to establish trade union organizations in these enterprises to represent and protect the legitimate rights and interests of workers and worker collectives.

Employers have the responsibility to create favorable conditions for the early establishment of trade union organizations. During the period before the establishment of such organizations, local or industry-level trade unions may designate a temporary trade union executive board to represent and protect the legitimate rights and interests of workers and worker collectives.

Any acts hindering the establishment and operation of trade unions in enterprises are strictly prohibited.

2. The directors of non-government enterprises are responsible for calculating and deducting 2% of the total wages, salaries, and allowances payable to employees, and transferring this amount to the grassroots trade union organization of the enterprise for management and use according to the regulations of the Vietnam General Confederation of Labor Unions.

3. The executive board of the trade union of non-government enterprises has the responsibility to urge and inspect the requirement that enterprises deduct and pay union fees in accordance with the prescribed regulations to the grassroots trade union organization.

4. If necessary, trade union organizations may negotiate with tax authorities to coordinate in organizing collections or to entrust them with collecting union fees on their behalf. The costs of such collection services shall be uniformly regulated and guided by the Vietnam General Confederation of Labor Unions for units under its vertical administration to implement.

The level of deduction, basis for deduction, method of deduction and payment, timing of deduction and payment, and accounting treatment of union fees shall be implemented in accordance with the provisions set forth in Joint Circular No. 76/1999/TTLT/TC-TLĐ dated June 16, 1999 of the Joint Circular of the Ministry of Finance and the Vietnam General Confederation of Labor Unions guiding the deduction and payment of union fees.

The Vietnam General Confederation of Labor Unions will provide detailed guidance on the distribution and use of union fee revenues from the non-government trade union system.

This circular shall take effect fifteen days after its publication in the Official Gazette. Other provisions regarding the deduction and payment of union fees shall be implemented in accordance with Joint Circular No. 76/1999/TTLT/TC-TLĐ dated June 16, 1999 of the Joint Circular of the Ministry of Finance and the Vietnam General Confederation of Labor Unions on the guidance for the deduction and payment of union fees.

In the course of implementation, if there are any difficulties, please report to the Ministry of Finance and the Vietnam General Confederation of Labor Unions for research and resolution.