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In the working relations between the employee and the employer, sometimes there will be serious conflicts that require all parties to come together and negotiate. However, as we have already known, not all of these negotiations end in peace. As the result of these negotiations, we will seldomly hear the term ‘failed collective bargaining.’ So, what exactly are the regulations on failed collective bargaining in Vietnam?
According to the Labor Code of Vietnam, collective bargaining is a negotiation and agreement between one party which includes one or more representative organizations of employees, and another party which includes one or more employers or representative organizations of employers.
The purpose of collective bargaining is to discuss and come to an agreement on the working conditions, and regulations on the relationship between the parties, and to build progressive, harmonious, and stable labor relations.
Collective bargaining in Vietnam
According to Article 70 of the Labor Code 2019, whenever collective bargaining is requested by a representative organization of employees in accordance with Article 68 of the Labor Code, the requested party must not refuse to hold the collective bargaining.
Within 07 working days from the day on which the request and the agenda are received, the parties shall agree upon the location and starting time for the bargaining.
The employer shall have the responsibility to prepare time, location, and other conditions for holding collective bargaining meetings.
The collective bargaining must be held within 30 days from the day on which the request is received.
However, in order to not affect the business’s operation on a daily basis, the time for collective bargaining must not exceed 90 days from the date of commencement of negotiations, unless otherwise agreed upon by the parties.
Time spent participating in collective bargaining meetings of representatives of the employees’ side is counted as paid working time.
Failed collective bargaining in Vietnam
If the collective bargaining between the parties doesn’t bring positive results to both parties and the parties can’t agree on the contents listed before the meetings, it will be considered a failed collective bargaining.
According to Article 71 of the 2019 Labor Code, failed collective bargaining results in the following cases:
- When one party refuses to negotiate or fails to conduct the negotiation within the time limit specified in Clause 1, Article 70 of the Labor Code;
- The time limit specified in Clause 2, Article 70 of the Code has expired but the parties fail to reach an agreement;
- The time limit specified in Clause 2, Article 70 of the Code has not yet expired, but the parties jointly determine and declare that the collective bargaining has not reached an agreement.
When a failed collective bargaining happens, the negotiating parties shall carry out procedures for labor dispute settlement according to the provisions of the Labor Code.
While resolving a labor dispute, a representative worker’s organization may not organize a strike.
In the labor relationship, if the parties bargain collectively to conclude a collective labor agreement but fail, the labour law in Vietnam considers this a labor dispute and is defined as a collective labor dispute about interests. The dispute resolution processes and procedures such as conciliation and arbitration may be applied to resolve them.
ASL LAW is the top-tier Vietnam law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.
