Supplementing cases of exemption, reduction, and suspension of trade union fee payment

Bảo Hân |

The 2024 Trade Union Law has added regulations on cases of exemption, reduction, and suspension of trade union fee payment to reduce the burden on enterprises, cooperatives, and cooperative unions when facing difficulties.

Mr. Le Dinh Quang - Deputy Head of the Department of Legal Policy and Labor Relations (Vietnam General Confederation of Labor) - said that from the practical implementation of support for businesses facing difficulties during the recent COVID-19 pandemic, the 2024 Trade Union Law supplements regulations on cases considered for exemption, reduction, and suspension of trade union fee payment for businesses, cooperatives, and cooperative unions when facing difficulties, in accordance with the practical situation and aspirations of the business community.

The addition of cases of exemption, reduction, and suspension of trade union fee payment aims to reduce the burden on enterprises, cooperatives, and cooperative unions when facing difficulties.

Article 30 (on exemption, reduction, and suspension of trade union fee payment) specifically stipulates as follows:

1. Enterprises, cooperatives, and cooperative unions that are dissolved or bankrupt according to the provisions of law shall be considered for exemption from the amount of unpaid union fees.

2. Enterprises, cooperatives, and cooperative unions that encounter difficulties due to economic reasons or force majeure shall be considered for reduction in the level of trade union fee payment.

3. In case the enterprise, cooperative, or cooperative association encounters difficulties and has to temporarily suspend production and business, leading to the inability to pay trade union fees, it will be considered for temporary suspension of trade union fee payment for a period not exceeding 12 months.

After the suspension period, enterprises, cooperatives, and cooperative unions continue to pay union fees and compensate for the suspension period. The deadline for compensatory payment is the last day of the month following the month in which the suspension ends. The compensation payment is equal to the amount payable for the months of suspension.

4. The Government agrees with the Vietnam General Confederation of Labor to regulate the exemption, reduction, and suspension of trade union fee payment; and details other contents of this Article.

Along with adding cases of exemption, reduction, and suspension of trade union fee payment, the 2024 Trade Union Law also amends and supplements the expenditure tasks of trade union finance in Article 31. One of the additional expenditure tasks of the new union financial sector is: Supporting grassroots unions where union fees are exempted, reduced or temporarily suspended (stipulated in Article 30 of the Trade Union Law 2024) to take care of union members and workers.

Bảo Hân
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