Inquiry into establishing a trade union organization within six months of operation

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Question: I read your article regarding trade union. My understanding based on your article is that in accordance with “Decree  No. 98/2014/ND-CP dated October 24, 2014” which takes effect from the 10th of December 2014:
1. Enterprises need to establish a trade union within 6 months from its operation.

2. If an enterprise fails to do so after 6 months, which I assume 6 months after the decree takes effect, the local union authority will set up a provisional trade union for our firm.

Is my understanding correct? What kind of advise and service you can provide us in this area? We are a software development firm established here since 2008 and only from 2012 had more than 10 employees. We have had contacted your company in HCMC earlier this year regarding this matter and have used your company services twice in other situations.

Answer:  We hereby confirm that your understanding is right. Within 6 months from establishment, if the Enterprise fails to setup the Trade Union, Trade Union of the District Level shall be responsible to setup the Trade Union for your Enterprise.

However, failure to setup Trade Union within 6 months from establishment of the Enterprise is not considered as default of the Enterprise, except for that you prevent your employees from setting up Trade Union.

 In this case, according to our opinion, you should consider setting up Trade Union in order to make sure that your trusted person shall be appointed as Chairman of Trade Union Committee.
You shall need at least 05 Vietnamese Employees to join the Trade Union and three of those shall join the Temporary Trade Union Committee in your Company.
One of these three persons shall be appointed as Chairman of Trade Union Committee. You should note that Chairman of Trade Union Committee is very important and you may need to consult him/her in case you wish to impose any labor discipline against any employee in your company.
Your person can contact the Trade Union of the District Level in order to get guidance on preparation of necessary documents for setting up Trade Union in your Company.
If you need our support to follow this procedure, you can contact our office in Ho Chi Minh City – Lawyer Nguyen Tien Hoa for further work.
We do hope that the above information is helpful for you. If you have any further inquiry, please feel free to contact us.