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Trade Union Law 2024: Rights and Obligations Businesses Need to Know

Trade union fees are one of the mandatory expenses that businesses often overlook or miscalculate. Trade Union Law No. 50/2024/QH15 takes effect from July 1, 2025. Below is the summary and full text of the Law.

This page is an automatic machine translation of the Vietnamese original. For legal matters, the Vietnamese version prevails. View Vietnamese original

Trade Union Law 2024: Rights and Obligations Businesses Need to Know

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The Trade Union Law 2024 includes 6 chapters, 37 articles, regulating the right to establish, join, and operate trade unions; organizational system; rights and responsibilities of trade unions and union members; Responsibilities of the State and employers towards trade unions; ensure trade union operations and finances; resolve disputes and handle violations. The law takes effect from July 1, 2025.

Right to establish and join trade unions (Article 5)

Workers have the right to establish, join and operate trade unions. Notable new point: foreign citizen workers working in Vietnam under a labor contract with a term of 12 months or more are allowed to join and participate in trade union activities at the grassroots trade union. Employers are not allowed to hinder or discriminate on the basis of union membership (Article 10 on prohibited acts).

Trade union fees — mandatory expenses that businesses often overlook (Article 29)

Agencies, organizations and businesses pay trade union fees equal to 2% of the salary fund as a basis for paying compulsory social insurance for employees. This is different from trade union dues - paid by trade union members according to the Charter of the Vietnam Trade Union. Article 30 stipulates the cases considered for exemption, reduction, or temporary suspension of union dues (dissolution, bankruptcy, economic difficulties or force majeure).

Responsibilities of the employer (Article 25)

  • Pay union dues in full and on time.
  • Ensure operating conditions for grassroots trade unions and union officials (Article 27, Article 28).
  • Coordinate with local trade unions in building salary scales, payroll, labor regulations, and collective labor agreements.
  • It is not allowed to unilaterally terminate contracts or transfer jobs to union officials due to union activities without complying with legal conditions.

Grassroots trade unions in discipline and labor disputes

Grassroots trade unions represent and protect the legal rights of employees in labor discipline, labor disputes, and collective bargaining — businesses need to invite union representatives to fully participate in disciplinary meetings according to the correct procedures to avoid decisions being declared invalid.

Do businesses that do not have a grassroots union have to pay union dues? According to Article 29, the obligation to pay union dues (2% of the salary fund as a basis for social insurance payment) applies to agencies, organizations, units, enterprises and cooperatives that employ workers; Enterprises should further compare the guiding decree in cases where a grassroots trade union has not been established.

How to handle non-payment of union dues? Article 36 regulates handling of violations of the law on trade unions; Late payment or failure to pay union dues may be subject to collection and penalties according to current regulations.

The full statutory text is published in Vietnamese, the official language of the law. View Vietnamese original

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