I. Definition of Collective Labor Agreement

A collective labor agreement is an agreement achieved through collective bargaining and signed in writing by the parties involved. It includes enterprise collective labor agreements, industry-wide collective labor agreements, multi-enterprise collective labor agreements, and other types of collective labor agreements.
An enterprise collective labor agreement can only be signed when over 50% of the employees in the enterprise vote in favor. It must be signed by the lawful representatives of the negotiating parties.

II. Legal Provisions on Collective Labor Agreements in Vietnam

A collective labor agreement is a familiar concept in modern labor relations. It serves as a crucial legal tool to establish the rights and obligations of both employers and employees, ensuring fairness and transparency in labor cooperation. Legally, Vietnam’s Labor Code 2019 provides clear regulations on the development, signing, and implementation of collective labor agreements to maximize the protection of all parties involved.

III. Collective Labor Agreements and Their Legal Significance Under the Labor Code 2019

According to Article 75 of the Labor Code 2019, a collective labor agreement is a written agreement between the collective of employees (represented by the grassroots trade union) and the employer regarding working conditions and mutual benefits. It forms the legal basis for determining specific working conditions and the rights and obligations of both parties during the labor process.
Collective labor agreements are significant in safeguarding employees’ rights, particularly regarding wages, rest periods, and workplace safety.

Collective labor agreements not only shape labor relations but also provide a clear legal framework for both parties. Through these agreements, employees and employers can negotiate and agree on terms tailored to their needs and the practical conditions of the enterprise, while still complying with current legal regulations.

IV. Negotiation and Signing Process of Collective Labor Agreements

The Labor Code 2019 outlines the negotiation and signing process of collective labor agreements. First, the parties must agree to establish a negotiating committee comprising representatives of both the employer and the employees. Members selected should possess adequate negotiation skills and legal knowledge. The negotiation process must be fair, transparent, and legally compliant.

Once negotiations are concluded and an agreement is reached, the parties proceed to sign the collective labor agreement. The agreement must then be submitted to the provincial labor management authority within 10 days for review and record-keeping. This ensures the agreement’s compliance with the law and the protection of all parties’ rights in labor relations.

V. Key Contents of a Collective Labor Agreement

A collective labor agreement must include key provisions such as wages, working hours, rest periods, welfare policies, workplace safety conditions, and other matters of mutual concern. Under Article 76 of the Labor Code 2019, the agreement must ensure that labor conditions are not lower than those stipulated by current laws. This safeguards employees’ legal rights and promotes a safe and effective working environment.

Additionally, the agreement should specify terms regarding labor dispute resolution, handling complaints, and conflict resolution procedures. These serve as an important foundation to prevent potential labor conflicts and maintain workplace stability.

VI. Invalidity of Collective Labor Agreements

A collective labor agreement is considered entirely invalid in the following cases:

• All contents of the agreement violate the law.
• The signatory lacks proper authority.
• The negotiation and signing process did not comply with legal procedures.

A collective labor agreement is partially invalid if one or more of its provisions violate the law.

VII. Duration and Effectiveness of Collective Labor Agreements

The duration of a collective labor agreement ranges from one to three years, as agreed upon by the parties and stated in the agreement, effective from the date specified under Article 82 of the Labor Code 2019. Within 90 days before the agreement’s expiration, the parties may renegotiate to extend or sign a new agreement. The agreement’s effectiveness begins on the date stated in the document or the date agreed upon by both parties.

In cases where amendments or supplements to the agreement are required, the parties must follow the same negotiation and signing process as for a new agreement. This ensures clarity and prevents any negative impact on the parties’ rights.

VIII. Responsibilities of the Parties in Implementing Collective Labor Agreements

Once signed, the collective labor agreement becomes an integral part of labor relations within the enterprise. The employer must publicly disclose the agreement to all employees and fully comply with the agreed terms. Employees, in turn, must adhere to the provisions and have the right to request monitoring and inspection of the employer’s compliance.

Under Articles 83 and 84 of the Labor Code 2019, in cases of violations, either party may request intervention from the competent state authority to protect their rights. This mechanism ensures fairness and transparency in the implementation of collective labor agreements.

IX. State Management Agencies and Oversight Role in Implementing Collective Labor Agreements

State labor management agencies, including the Ministry of Labor, Invalids and Social Affairs and provincial-level Departments of Labor, Invalids and Social Affairs, play a vital role in supervising and ensuring the proper implementation of collective labor agreements. These agencies have the authority to inspect, evaluate, and request amendments or annulment of unlawful provisions. This oversight protects the legitimate rights of both employees and employers.

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