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GUIDING ENTERPRISES TO BUILD COLLECTIVE LABOR AGREEMENTS

  30/06/2020

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At least once a year or irregularly at the request of one party or one party (the labor collective or the employer) has the right to request collective bargaining, discussion and negotiation to resolve problems, difficulties in exercising the rights and obligations of each party in the labor relations or establishing new working conditions as a basis for the signing of the CBA. The CBA is an agreement document that records the results of working conditions that the employer and the labor collective have gained from collective bargaining. If either party refuses to negotiate, the requester may request the Court to settle the dispute.

  1. Principles of collective bargaining

The parties negotiate collectively and conclude a CBA on goodwill, equality, cooperation, publicity and transparency. The contents of a CBA must not be contrary to the provisions of the law and must be more beneficial to the employees than the provisions of the law.

The employer will directly participate in the collective bargaining meeting or through the legal representative of the employer and the representative of the labor collective participating in the collective bargaining meeting is the grassroots level trade union or higher-level executive committee.

  1. Contents of a collective labor agreement

The parties may negotiate on salaries, bonuses, allowances and salary increases, working time, rest time, overtime, mid-shift breaks, job security for employees, labor safety, labor safety, implementing the ILR and other issues of interest to the parties. The contents of the signed CBA are those that the parties have gained from collective bargaining.

  1. Signing and effect of enterprise collective labor agreement

The CBA of the enterprise is signed between the representative of the labor collective and the employer or the legal representative of the employer. Specifically, the person who signs the CBA of a labor collective party is the Chairman of the grassroots level Executive Committee or the Chairman of the immediate higher level Executive Committee in the locality where the grassroots Labor Union Executive Committee has not yet been established and the person who signs the CBA of the labor collective party legal representative of the business. A person who signs a CBA may authorize another person to sign a CBA.

The CBA takes effect from the date stated in the CBA. If there is no effective date of the CBA, the CBA will take effect from the signing date.

A CBA is valid for one to three years or less than one year if the enterprise has first signed the CBA. The parties may negotiate to extend the term of the CBA or to sign a new CBA within three months before the expiration of the CBA. The parties have the right to request the amendment and supplementation of the CBA within the time limit prescribed by the Labor Code.

  1. Implementing the enterprise collective labor agreement

The employer, the employee currently working for the employer at the time the enterprise comes into force and takes into account the date after the effective date of the enterprise labor agreement, must fully implement the contents of the enterprise collective bargaining agreement.

The order of priority applies when there are conflicts with other documents and regulations:

  • If the rights, obligations, interests of the parties to a labor contract signed before the effective date of the CBA are lower than the corresponding provisions of the CBA, the parties must comply with the corresponding provisions of the CBA. In this case, the parties may revise the signed labor contract by: signing a new labor contract or signing an appendix of the labor contract to record the contents changed according to the CBA;
  • If any regulation of the employer on labor is not in accordance with the CBA, the employer will have to revise those regulations to be compatible with the CBA; and
  • If the content of the CBA or the regulation of the employer is the legal rights, obligations, and interests of the enterprise in the enterprise lower than the corresponding provisions of the industry CBA (if any), it is required to amend and supplement the CBA.
  1. Amending and supplementing collective labor agreements

The enterprise CBA will be amended and supplemented when:

  • the parties request;
  • the law changes; or
  • there is a transfer of ownership, management right, business use right, merger, consolidation, division, separation of business.
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