Prevalent practices for labour dispute resolution in Vietnam

By David Truong Lang, Viettonkin Consulting

Amid the pandemic, individual labour disputes in Vietnam are increasing while unionised or collective labour disputes are depleting in number. After Lunar New Year 2022, there has been a total of 28 disputes recorded nationwide – a 20% yearon- year decrease. The primary cause of the disputes in Vietnam is salary withholding. By January 2022, there were 19 enterprises in 11 provinces and cities accountable for about USD 2 million in salary debt from nearly 2,000 employees.

Labour disputes in Vietnam are resolved by the following means: negotiation, mediation, arbitration, or court litigation. Mediation by a labour mediator is compulsory before the dispute is escalated to offcial levels. However, Labour Code 2019 has presented six labour dispute cases that do not require mediation (including three additional cases) compared to the Labour Code 2012.

  1. Dismissal or unilateral termination of the labour contract,
  2. Compensation for damage, and allowance when terminating the labour contract,
  3. Between the domestic worker and the employer,
  4. Social insurance, health insurance, unemployment insurance, occupational accident, and occupational disease insurance.
  5. Compensation for damage between employees being sent to work abroad under contract and their company, and
  6. Between the outsourced employee and the outsourced employer.

If compulsory mediation fails, the involved parties can choose either a Labour Arbitration Committee or authorised Court (at the district or provincial/ city level), but not simultaneously and within 6–12 months. The procedure for setting up an Arbitration Committee lasts around 7–30 days and includes three steps:

  1. submit a dispute resolution request to the Labour Arbitration Committee,
  2. establish a Labour Arbitration Board, and
  3. make a final judgment to settle the labour disputes.

 

David Truong Lang

David Truong Lang

GGI member firm
Viettonkin Consulting
Auditing & Accounting, Tax, Corporate Finance, Advisory
Ha Noi and Ho Chi Minh City, Vietnam
T: + 84 918 866 858
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W: viettonkinconsulting.com

Founded in 2009, Viettonkin is a multidisciplinary group of consulting firms specialising in accounting, legal, and a one-stop solution to FDI enterprises worldwide. The FDI consulting company aims to facilitate and connect investors in Southeast Asia with the rest of the world.

David Truong Lang is the Founder and CEO of Viettonkin. He has over 10 years of experience, focused on FDI investment and supporting worldwide enterprises.
 


Published: Employment Law Newsletter, No.12, Summer 2022l Photo: Burin - stock.adobe.com

 

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