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HANOI UNIVERSITY

FALCULTY OF MANAGEMENT AND TOURISM

BUSINESS LAW ASSIGNMENT

Labor dispute resolution


Under Viet Nam legislation

Tutor:

Ms. H Thy Hng

Students:

ThieuNgoc Hang - 1204010023


Hoang Minh Huyen - 1204010044
Nguyen ThiThuy Linh - 1204040056
Phi ThiNguyet - 1204010070

Classs:

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Tut 4-FB 12

Table of Contents
I.

Introduction............................................................................................................. 3

Interpreting Labor dispute............................................................................................ 4


a.

Labor disputes concept............................................................................................ 4

b.

Classification of Labor disputes.................................................................................. 4

II.

The principles of the labor dispute resolution....................................................................4


1.

Basic principle of labor dispute resolution.....................................................................5

2.

Agencies and individuals withthe competence to settlelabordisputes....................................5

Agencies and individuals with the competence to settle individuallabor disputes..................5

Agencies, organizations and individuals with the competence to settle the collective labor
disputes.................................................................................................................. 6
III.

Limitation for request and order of settlement of labor disputes..........................................6

1.

Order of personal labor dispute settlement.....................................................................6

2.

Order for settlement of collective labor disputes.............................................................7

3.

Limitation for request of settlement.............................................................................8


a.

Limitation for request of settlement of personal labor disputes.........................................8

b.

Limitation of request for the settlement of collective labor dispute on the rights...................8
Case of labor dispute............................................................................................... 8

4.

IV.
V.

a.

Case of individual labor dispute..............................................................................8

b.

Case of collective labor dispute:............................................................................ 10


Significance of labor disputeresolution.......................................................................11

Conclusion............................................................................................................ 11

Reference.................................................................................................................... 13

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I. Introduction
In today's economy, in the process of implementing the rights and obligations of labor
relations between workers and employers do not always take place in a stable manner in
accordance with the agreed common cause. Between them will probably appear disagreements
about the rights and interests of workers. There is disagreement and agreement between the two
parties, some problems can be solved by their bargaining, but there are some problems that can
not be resolved through negotiations between the two sides. These problems may be related to
the rights and interests of labor relations, disputes relating to employment, wages, income and
other working conditions to perform the contract action. These contradictions when the parties
have reached agreement will not become possible conflict, but two sides of labor relations and
negotiation discussions automatically without going to an agreement or either party refuses if
negotiations are not resolved, conflict can become hard. At this point, they need a middleman (or
third-party agencies authorized by law) to resolve the conflict between them is not easy to avoid.
In addition, in order to resolving the conflicts without compromising the interests of both sides,
we need to understand the nature of the problem and find the suitable methods of dispute
resolution in each case. Due to differences in the economies of each region and also the case of
labor disputes should have different ways to deal with different circumstances. In Vietnam, in
labor code, it clearly stipulates the terms of the labor dispute and how to resolve labor disputes.
With the aim is to better understand the solving labor disputes, in this assignment, we will focus
on discussing about the resolution labor dispute as well as some issues regarding it.

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Interpreting Labor dispute


a. Labor disputes concept
According to Article 3.7 (Labor code 2012)
Labor dispute is the dispute over the rights, obligations and interests arising in the labor
relation.
The labor disputes include the personal labor dispute between the employee and the employer,
and the collective labor dispute between the labor collective and the employer.
b. Classification of Labor disputes
Based on the scale of the dispute
Labor disputes are divided into individual labor dispute and collective labor disputes
- Individual labor disputes are conflict between the individual employee and the employer or the
dispute objects only relate to one individual worker. Its impact to production activities of
enterprise is only limited extent.
- Collective labor disputes are dispute between team workers within the enterprise. It effects
negatively to production, even it as affect to public order and security.
Based on the nature of the dispute
Labor disputesare divided into collective labor dispute over rights and collective labor dispute
over interests.
- Collective labor dispute over rights is the dispute between the labor collective and the
employer arising out of the inconsistent explanation and implementation of the law provisions on
labor, the collective labor agreement, the labor regulations and other lawful agreements and
regulations.( According to Article 3.8)
- Collective labor dispute over interests is the labor dispute arising when the labor collective
requests the establishment of new working conditions compared to the law provisions on labor,
the collective labor agreement, labor regulations and other lawful agreements and regulations
during the negotiation between the labor collective and the employers.( According to Article 3.9)
II. The principles of the labor dispute resolution.
The principle of the labor dispute resolution was defined the process that the competence
organizations carry out the procedure by law to resolve the controversy between an employer and
its employees concerning the terms or conditions of employment, or concerning the association
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or representation of those who negotiate or seek to negotiate the terms or condition of


employment. The purpose of this resolution is deleting the grievance, the conflict among labors.
1. Basic principle of labor dispute resolution
According to article 194 under labor code of Viet Nam (amended in 2012), the labor dispute is
resolved with following rules below.

The first rule:Respecting and ensuring to let thepartiesnegotiateand decide in the settlement
of labor disputes by themselves. Normally, they use the negotiation and mediation to resolve
the disagreement. It is the methods which are allow the parties freely deal to reach a
consensus agreement. The negotiation is having the basic characteristics includes parties
together to present views, opinions, discuss and find appropriate measures, and reach a
consensus agreement to resolve the disagreement, and the mediation are nearly the same.
However, the mediation can use the third party.
The second rule: Ensuring theimplementation ofconciliation and arbitration on the basis of
respect for the right and interests of both parties, respect for the common good of society and
not contrary to law.
The third rule: Being public, transparent, objective, timely, rapid and lawful.
We know thatthe labor dispute is has influence on peoples life and society. Hence, we need
to solve this issue fast to restrict maximum bad effect. Beside, to resolve quickly and
recover the legal right of both the parties, the competence must be objective, and obey the
law.
The fourth rule: Ensuring theparticipation of representatives of the parties during the process
of settlement of labor disputes.
The fifth rule: The settlement oflabor disputes must be directly negotiated by the two parties
firstly to settle the harmoniousinterests of the two parties, stabilize the production and
business and to ensure the social order and safety.
The sixth rule: The settlement of labor disputes by the agencies, organizations and
individuals having the competence to settle the labor disputes is conducted after either party
file a requesting application due to the refusal of negotiation by either party, negotiation done
but failed or successful negotiation but either party fails to perform the agreement.

2. Agencies and individuals withthe competence to settlelabordisputes


According to article 198, 200, 203 Labor Code of Viet Nam (amended in 2012), the competence
includes:

Agencies and individuals with the competence to settle individuallabor disputes


1. The labor mediator.

The labor conciliator is appointed by the State management agency on labor at district,
townand provincial city level to settle the labor disputes anddispute son vocational training

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contracts. The Government regulatesthe standard and authority for appointment of labor
mediator

2. ThePeople's Court.
Agencies, organizations and individuals with the competence to settle the collective
labor disputes.

1. The agencies, organizations and individuals with the competence to settle the collective
labor disputes with respect to rights including:
a) Labor mediator;
b) Chairman of the People's Committees ofdistricts, townsand provincial cities(hereinafter
referred to as chairmanof the district-level Peoples Committee).
c) Peoples Court.
2. The agencies, organizations and individuals with the competence to settle thecollective
labor disputes with respect to interests including:
a) Labor mediator;
b) Labor arbitration Council(article 199).
III.Limitation for request and order of settlement of labor disputes
1. Order of personal labor dispute settlement
Step 1: Settlement at grassroots level
When personal labor dispute happen and both parties cannot negotiate with each other, the
dispute will conducted mediation by the labor mediator. The labor mediator has to instruct the
dispute party arrange with another dispute party about having the last decision. According to the
clause 2, article 201 Vietnamese Labor code 2012, within05 workingdays afterreceiving
therequest for mediation, the labormediator must end the mediation. Atthe mediation
meeting,both disputing parties must have presence or they mayauthorize the others to jointhe
mediation meeting.
The information by clause 3 article 201 Vietnamese labor code 2012 indicates that the
parties will be guided to negotiate by labormediator before both disputing parties decide
agreement or dont agreement. Thelabormediatoris going tomake a record of successful
mediation in case the two partiesreach agreement.
In case the two partiescannot reach agreement, the labormediator will give out a
mediatory plan for both parties toconsider. If both partiesaccept themediatory
plan,thelabormediatorwillmake a record of successful mediation.If bothparties do
notaccept themediatory plan ora disputing party has beenduly summonedtwicebut still
absentwithoutplausible reasons, the mediator shallmake a recordof unsuccessful
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mediation. The record will bear the signatures of both disputing parties and the labor
mediator.
Step 2: Settlement at the People's Court
Each disputing party has the right to request the settlement from the Court in case of
unsuccessful mediation or eitherparty does not performtheagreements in therecord of successful
mediation or the time limit for settlement is over but the labor mediator does not conduct the
mediation according to clause 4 article 201 Vietnamese labor code 2012
2. Order for settlement of collective labor disputes
Step 1: According to article 204 of Vietnamese labor code 2013 the first step of the order of
settlement of collective labor dispute is executed the same as the first step of order of personal
labor dispute settlement in the Article 201 of this Code. The record of mediation must specify the
type of collective labor dispute.
Step 2:In caseof unsuccessful mediationor eitherparty fails to performtheagreements in therecord
of mediation
If it is the collective labordisputeson the rights,the partieshave the right to request
theChairman ofdistrict-level Peoples Committeefor settlement.
_ The Chairman district-level People's Committees shall have tosettle the labor disputes,
within05 workingdays afterreceipt ofrequest application for settlementof collective
labordisputesonthe rights
_Atthe meeting to settle thelabor disputes,there must be the representatives ofboth disputing
parties. Innecessary cases, theChairman ofdistrict-level People's Committee shall invite
therepresentatives of the agenciesand organizationsconcernedto attend the meeting.
If it is the collective labordisputeson the interests,the partieshave the right to request
thelabor arbitration Councilfor settlement.
_The laborarbitration councilmust completethemediation within07 workingdays afterreceiving
theapplication for settlement request.
_At the meeting of thelaborarbitration council, there must be therepresentativesofboth parties. In
necessary case, the Labor ArbitrationCouncilshall invite therepresentatives of agencies,
organizations and individualsconcernedto attend the meeting.
_ The Labor ArbitrationCouncilshallassist the partiesto negotiate themselves,if the two partiesfail
negotiation;thelaborarbitration council shall give the mediatory plan for both parties consider.
_ In casethe two partiesreach agreementoraccept themediation plan, the labor arbitrationCouncil
shallmake a recordof successful mediation at the same time make adecisionon recognizing
theagreementof the parties.
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_ In casethe two parties fail to reach agreementora disputing party has beenduly summonedfor
the second timebut stillabsent withoutplausible reason,the labor arbitrationCouncil shallmake a
recordof unsuccessful mediation.
_The record has the signatures ofthe present parties, theChairman andsecretaryof the
laborarbitration council.
Step 3:
In the eventthe partiesdo not agreewith the decisionof Chairman ofdistrict-level People's
Committee or ifthe deadline is over but the Chairman ofdistrict-level People's Committee does
not settle, the parties have the right requestthe settlement from the Court if it is the collective
labordisputeson the rights.
If it is the collective labordisputeson the interests, aftera period of 05days from thedatethe
Labor ArbitrationCouncilsets up the recordof successful mediation butone of the partiesdoes not
execute the agreement that has been reached or the Labor ArbitrationCouncilsets up the recordof
unsuccessful mediation, after a period of 03 days, the labor collectivehasthe right to conduct the
proceduresto go on strike.
3. Limitation for request of settlement
a. Limitation for request of settlement of personal labor disputes
The restriction to petition the labor mediator to perform the mediationof personal
labordisputesis 06months from thedate of discoveryof the acts wherebythe disputing parties
thinks that theirrightsandlegitimate interestshave been breached.
From thedate of discoveryof the act wherebythe disputing parties thinks that
theirrightsandlegitimate interestshave been breached, the limitation to request the court to
settleindividual labordisputesis 01years.
b. Limitation of request for the settlement of collective labor dispute on the rights
The bounds of require for the settlement of collective labor dispute on the rights is 01 year
from the date of discovery of the acts that the disputing parties think that their rights and interests
are breached.
4. Case of labor dispute
a. Case of individual labor dispute
Mr.K worked at Co. B under indefinite labor contract from 05/03/2007. 01/2008 he was elected
president of the union executive board of the company. In 4/2008 on behalf of his union
executive committee, he calls for strike workers protest wage policy of the company. The
majority of the employees responded his appeal and they wrote a request for the director,
attached to the statement if in 3 days, the director did not have decision about new wage policy,
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they will be off work. Because of this, the company's director B decided dismissing Mr.K and
warned Mr.K: if Mr.K led employees striking, he will be fired. Mr.K did not agree with this
decision, Mr.K held for many employees stop working in the next day. The directors convened
an extraordinary meeting in order to consider discipline for K with the participation of the
Director, manager staff, all members of the executive board of company unions, the entire rest,
the team leader which Mr.K worked and Mr.K. In the meeting Mr.K said that the participants
were not objective and he was not violation of labor discipline so he quit halfway through the
meeting. According to the approval of most of the people attending the meeting, on 05/05/2008
the Director decided that Mr.K was fired because he give up his job with no reason (decision
takes effect from the date of signing and sent the same day for Mr.K). When receive the sacked
decision, Mr.K requested in resolving labor dispute. The incident must be resolved under
Vietnam labor law?

Solution:

Regarding the number of workers involved in the dispute: When receive the sacked decision,
K wrote a request dispute resolution. This is a dispute between Mr.K - specific employee and the
employer - the company B.
For purposes: Mr.K thought that the company fired him is contrary to the provisions of law so
he wrote a request competent authority dispute resolution. The purpose here is geared to the
specific interests of his own, not the collective employees
Based on the analysis above, it can be stated that the dispute between Mr.K and Company B is
personal labor dispute. According to the article 200 of Vietnamese labor code, Agenciesand
individuals withthe competence to settleindividual labordisputes between Mr.K and company B
including the labor mediator and the People's Court
Order resolution:
The fact that he puts out a strike call workers protest wage policy of the company on behalf of
his union executive committee is lawful. The director decided to dismiss Mr.K is wrong in spite
of the fact that which K is sacked is unreasonable, but this time is only 3 days after send a
request for the director as a result Mr.K should not have rights organization for retired
employees. At the meeting K, he quit halfway through the meeting and follow the opinion of the
people attending the meeting, the directors has decided to sack Mr.K. Hence this is not a legal
decision.
First of all, Mr.K and Company B will join together to negotiate some problems related to the
rights and interests of the two parties.
If they cannot reach agreement from the negotiation, it will turn to the labor mediator. After
Mr.K sends a request to the labor mediator, labor mediator will give the mediatory plan for both
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parties consider. If Mr.K and company B reach agreement from the negotiation, the labor
mediator will make a record of successful mediation. If the negotiation fails or expiration resolve
mediation of labor mediator (5 working days) or a disputing party has beenduly
summonedtwicebut still absentwithoutplausible reasonsMr.K may request the People's Court
settlement.
The limitation which Mr.K requests the labor mediator to perform the mediationis 06months
from thedate of discoveryof the acts wherebythe disputing parties thinks that
theirrightsandlegitimate interestshave been breached.
The limitation Mr.K request the court to settleindividual labordisputesis 01years from thedate of
discoveryof the act wherebythe disputing parties thinkthat theirrightsandlegitimate interestshave
been breached.
b. Case of collective labor dispute:
Company X located in Ho Chi Minh City is 100 % joint venture foreign investment. On
2/2/2001, the company X contracted with 5 security guards. The clause in the contract for the
rights and obligations of protecting employees includes salary 2 million/month/person (social
insurance contributions paid by the personal employees). About time term of the labor contract,
the two parties agreed by actual request of company X. On 3/4/2009, 5 security guards wrote
request to pay money for their health insurance from their days working for company X
(2/2/2001) to day single (3/4/2009) at insurance premium is 17% of monthly salary. However,
company X did not agree because first things in contracts specify "social insurance contributions
paid by the employee self ", they have no obligation to pay the insurance premiums for 5 security
guards. Secondly, if they have to pay premium for 5 employees, they will not agree with the
amount of social insurance is 17 % of monthly salary. Therefore, 5 workers had to request
settlement of labor disputes. Who is right in this case?

Solution:

Dispute of 5 security guards about settlement to pay insurance premium is defined collective
labor dispute over interests. Institutions, organizations, individual have jurisdiction to solve
collective labor dispute over interest are:
Labor mediator
Labor arbitration council
Sequence:
First of all, 5 security guards and Company X will join together to negotiate some problems
related to the rights and interests of the two parties.
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If they cannot reach agreement from the negotiation, after 5 security guards send a request to
the labor mediator at basis. Labor mediator will give the mediatory plan for both parties consider.
If 5 security guards and company X reach agreement from thenegotiation, the labor mediator will
make a record of successful mediation. In case of unsuccessful conciliation or either party fails to
perform the agreement in mediation records of settlement or expiry (5 working days) are
protected 5 security guards may request the arbitral tribunal to the provincial labor central cities
resolved.
Within 07 working days from receipt of the petition for settlement, labor arbitration council must
end reconciliation. At the meeting of labor arbitration council must be representative of company
X and 5 security guards. Labor arbitration council is responsible for supporting the negotiating
between2 parties, in case of 2 parties are not negotiated labor arbitration council made plans for
the two sides to consider. In case of two parties reach an agreement or accept the settlement, the
labor arbitration council established a conciliation record simultaneously the decision to
recognize the agreement of the parties.
In case of the two parties did not reach agreement, or a party to a dispute has been duly
summoned twice but still absent without good reason, the labor arbitration council to make a
record of unsuccessful conciliation .A copy of the minutes of conciliation or reconciliation fails
to be sent to company X and 5 security guards within 01 working days from the date the records.
Cases in labor arbitration council established record of reconciliation after the 03 day deadline, 5
security guards have the right procedures to go on strikes.
IV. Significance of labor disputeresolution
Settlement of labor disputes has important implications for workers and employers. It
helps them understand their rights and responsibilities in the implementation process of labor, so
that they understand what they need to do and what they enjoy. Solving labor disputes help
maintain equitable relations between the parties to labor, thereby creating favorable conditions
for laborers, working in good environmental conditions, not exploitative labor, fully paid, to help
them promote their capabilities, increase productivity, accelerate development. Moreover,
solving labor disputes also help. Moreover, labor disputes resolution also contributes to
improving the law and ensure legal and applied correctly.
V. Conclusion
To conclude Our research have had an obvious define what resolving
labor disputes is as well as what are the issues related to the settlement of
labor disputes. Through this essay, we will understand that when in order to
resolve labor disputes we need to follow certain principles and those who will
have the authority to resolve such conflicts. Moreover each kind of labor
dispute we will have to solve the labor disputes such as personal or
collective. Furthermore in order to understanding better the issues related to
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the settlement of labor disputes in Vietnam our essays also cited specific
examples of labor disputes in Vietnam as well as solving steps for these
cases. After many years of labor legislation published and several times
amended, the law has become more complete and clearer. It has come to life
of Vietnamese people and applied legitimate to solve the labor dispute.
However, due to the many new situations arise in a labor dispute that we
have not anticipated,the labor code did not met and resolved. To overcome
these limitations, the legislation of Vietnam needed to edit and finalize this
law more adequate.More importantly, through writing this assignment, it is
expected that all of us will have an appropriate knowledge and
understanding of the ways to solve labor dispute.

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Reference
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http://www.dankinhte.vn/khai-niem-va-cac-dac-diem-cua-tranh-chap-lao-dong/
Labor Code. (n.d.). Retrieved 5 21, 2014, from
http://ilo.org/dyn/natlex/docs/ELECTRONIC/91650/106402/F1475261172/VNM91650%20Eng.pdf
Labor Code. (2012). Retrieved from
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