Establishment of grassroots trade union at representative office of foreign business entity

The establishment of grassroots trade unions at the foreign representative office in Vietnam is necessary to protect the interests of workers and meet the trend of international integration as well as global labor commitments. According to the Labor Code 2019 and the Trade Union Law 2012, this is a basic right of employees, contributing to building a transparent and fair working environment. However, due to the fact that it does not have a business function, the representative office of foreign traders faces many legal and practical difficulties when establishing a trade union. The article will analyze the legal basis, conditions, processes, and challenges and solutions to this problem. 

1. Conditions for establishment of grassroots trade unions 

Pursuant to Clause 1, Article 13 of the Charter of the Vietnam Trade Union promulgated together with Decision 174/QD-TLD in 2020 stipulates as follows: “Grassroots trade union is a grassroots organization of the Vietnam Trade Union, established in one or several employers operating legally, when there are 05 union members or 05 or more employees, there is an application to voluntarily join the Vietnam Trade Union.” 

Accordingly, a grassroots trade union is a grassroots organization of the Vietnam Trade Union and is established when the following 2 conditions are met: 

• Grassroots trade unions are established in one or several lawfully operating employers; 

• Having 05 union members or 05 or more employees, having a voluntary application to join the Vietnam Trade Union. 

In addition, in subsection 11.1, Section 11 of Guideline 03/HD-TLĐ on the Implementation of the Charter of the Vietnam Trade Union in 2020, it is stipulated that grassroots trade unions can be established in employers as follows: 

“11.1. Grassroots trade unions established in employing units include: 

1. Enterprises of all economic sectors (including subsidiaries in the group of companies; branches and representative offices of enterprises headquartered in other localities).”

Thus, the representative office of the foreign trader is one of the employers to establish the grassroots Trade Union.  

2. Process of establishing a grassroots trade union of a representative office of a foreign trader  

Pursuant to the contents of subsections 12.1 to 12.4, Section 12 of Guideline 03/HD-TLD 2020, the order and procedures for establishing grassroots trade unions are as follows: 

Step 1: Set up a grassroots trade union establishment campaign committee to propagate, mobilize and receive applications to join the trade union of employees  

Step 2: When there are 05 or more people (including employees who are members of the trade union and employees who have applied to join the trade union), the Mobilization Committee organizes a congress to establish a grassroots trade union to elect the executive committee of the grassroots trade union and the chairman of the grassroots trade union 

Step 3: The Chairman of the grassroots trade union organizes a meeting of the executive committee of the grassroots trade union to elect the Standing Committee, vice chairman, inspection committee and chairperson of the trade union inspection committee (if eligible) 

Step 4: The Executive Committee registers with the trade union at the grassroots level to recognize the grassroots trade union 

Step 5: The trade union directly superior to the grassroots shall appraise the process of establishing the grassroots trade union to ensure voluntariness and objectivity; the election at the founding congress and the election at the executive committee meeting shall comply with the provisions of the Charter of the Vietnam Trade Union 

Step 6:  The trade union directly superior to the grassroots shall issue a decision to recognize the grassroots trade union. The grassroots trade union shall engrave its seal and organize its activities in accordance with the provisions of the Charter of the Vietnam Trade Union.    

3. Dossier of request for recognition of grassroots trade union 

A dossier of request for consideration and recognition of the grassroots trade union by the superior trade union includes: 

• Written request for recognition of union members, grassroots trade unions and election results of the executive committee, standing committee, inspection committee and titles of the executive committee and the inspection committee of the trade union; 
• List of union members and applications to join the Vietnam Trade Union of employees; 
• List of cross-deductions of resumes of members of the Executive Committee, Standing Committee, members of the Grassroots Trade Union Inspection Committee; 
• Minutes of the grassroots trade union establishment congress; 
• Minutes of vote counting at the grassroots trade union establishment congress and election minutes at the meeting of the executive committee (if any); 
• Charter of grassroots trade unions; 
• Enclosed with the following documents: a copy of the business registration license, a report on the employment situation (approved by the District Department of Labour, Invalids and Social Affairs if any). 

4. Challenges and Solutions 

• Foreign traders’ representative offices face numerous challenges in establishing grassroots trade unions, particularly due to their non-business nature, which results in a small workforce and difficulty in meeting the required number of union members. Additionally, the absence of revenue generation in Vietnam makes it challenging to allocate funds for trade union activities. Moreover, cultural and legal differences pose difficulties for foreign traders in adapting to Vietnam’s trade union organization regulations. 

• To address these issues, it is necessary to enhance awareness by explaining employees’ rights and the office’s responsibilities in supporting trade union formation. Furthermore, the office should collaborate with higher-level trade union entities to receive legal guidance and detailed support. Additionally, the office can leverage its small-scale organization to build a transparent, close-knit, and efficient working environment, thereby meeting both legal requirements and the expectations of employees. 

• The Trade Union Law 2024, set to take effect on July 1, 2025, is expected to mark a significant advancement in legal policy and serves as a commitment to workers for a future of safe, transparent, and equitable employment. It also reflects progress in creating a labor environment that is transparent, fair, and aligned with the trends of international integration. Accordingly, foreign workers employed in Vietnam under labor contracts with a duration of at least 12 months are eligible to join and participate in trade union activities at the grassroots trade union level, although they are not entitled to establish trade unions or hold trade union leadership positions. 

Thus, the establishment of a grassroots trade union at the representative office of foreign traders not only ensures the interests of both Vietnamese employees and foreign employees but also contributes to building a stable, harmonious, and transparent working environment. This shows compliance with Vietnamese laws, and at the same time improves the reputation and image of the business. 

Understanding and properly implementing the legal provisions on the establishment of grassroots trade unions is an important factor for the representative office to operate sustainably and effectively in Vietnam. 

See more:

1/ Are enterprises required to establish grassroots trade unions?

2/ Trade Unions – Establishment Procedures And Conditions For Maintaining The Primary Trade Union Activities

Share: