Enterprise Must Establish A Trade Union Organization Within Six Months Of Operation

The Government has just issued the Decree No. 98/2014/ND-CP dated October 24, 2014 providing the establishment of political organizations and socio-political organizations at enterprises of 
all economic sectors and this Decree takes effect on December 10, 2014 prescribing that within six months after an enterprise is established and commences operation, the local Trade Union organization, the sectoral Trade Union organization or the Trade Union organization of the industrial park or export processing zone shall coordinate with the enterprise in establishing a Trade Union organization.

After 6 months, if the enterprise fails to establish a Trade Union organization, the higher-level Trade Union organization may designate a provisional Trade Union Executive Committee of the enterprise to represent and protect lawful and legitimate rights and interests of workers and collectives of workers. Accordingly, a Trade Union organization shall be established at an enterprise where there are 5 or more Trade Union members or where workers make applications to volunteer to join the Vietnam Trade Union and the conditions for establishment of a Trade Union organization prescribed in the Law on Trade Unions and the Statute of the Vietnam Trade Union are fully met.

For party organizations at enterprises, the Decree prescribes that an enterprise that has 3 or more workers being official Party members may establish a Party organization according to the Statute of the Communist Party of Vietnam. For an enterprise with only 1 or 2 worker(s) being official Party member(s), the Party committee of the level next higher than the grassroots level shall recommend such worker(s) to the Party organization of the level next higher than the grassroots level and decide to establish a combined Party cell or assign a Party member of the Party organization of the level next higher than the grassroots level to participate in Party activities and establish a Party organization at the enterprise. The combined Party cell shall develop Party members at the enterprise and when there are 3 workers being official Party members at the same enterprise, the Party committee of the level next higher than the grassroots level shall decide to establish a Party organization at the enterprise.

This Decree takes effect on December 10, 2014.

Vietnam law firm