Trade unions to gain more power in Vietnam via draft Trade Union Law (amended)

The National Assembly is currently debating several contentious points in the draft amended Law on Trade Unions, granting these organizations the authority to represent workers in protecting their legitimate rights and interests.

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Laborers are joining a law training session held by a HCMC’s trade union (Photo: SGGP)


The current requirement that trade unions can only represent workers in lawsuits when authorized by individual workers has posed significant challenges for these organizations. This is especially true when representing workers in disputes with businesses that have failed to pay social insurance contributions.

Nguyen Phuoc Dung, a representative from the Nha Be District Federation of Labor in HCMC, shared a case where a company had not paid wages, allowances, or social insurance contributions to its workers since December 2021. Despite the union's efforts to mediate, the company only agreed to pay the debt until July 2024 no later than October 31. Dung noted that many workers had since left the company, making it difficult and time-consuming to collect authorization from each individual to file a lawsuit against this business.

Tran Van Trieu, a former director of the HCMC Federation of Labor's Legal Advisory Center, emphasized the crucial role of trade unions in protecting workers' rights. However, he pointed out that the current requirement for individual authorizations has hindered unions from taking legal action against companies that have defaulted on social insurance payments as this collection of all necessary authorizations is both labor- and time-intensive.

Chairman Luu Kim Hong of the Trade Union of Nidec Vietnam Co. (sited in Saigon Hi-tech Park in Thu Duc City of HCMC) expressed similar concerns, stating that the current regulations have made it difficult for unions to represent workers in legal disputes.

Head Vu Minh Tien of the Policy and Law Department under the Vietnam General Confederation of Labor noted that the draft amended Law on Trade Unions has been considered by the National Assembly and is expected to be passed in the 8th session of the 15th National Assembly, with effect from 2025.

This amendment of the applicable Trade Union Law in the current context is important in institutionalizing the innovation required in Resolution 02 of the Politburo on “innovation of organization and operation of Vietnam trade unions in the new situation”. Meanwhile, it is consistent with a number of legal provisions issued after the Trade Union Law 2012 was promulgated and took legal effect.

Vice Chairman Pham Chi Tam of the HCMC Federation of Labor proposed that the amended law should stipulate that trade unions have the authority to represent workers in lawsuits by default. As union members, workers are already represented by the union, and thus the union should have the right to represent them in court without the need for individual authorizations.

Tran Kim Yen, National Assembly Deputy and Head of the Inspection Commission of the HCMC Party Committee, supported the above stance, arguing that trade unions should have the right to directly protect the legitimate rights and interests of workers. She cited the example of female workers who are nearing their due date but do not have social insurance, and who would face significant difficulties during their maternity leave of six months without any support.

Currently, the state of businesses not paying social insurance in time is rather popular. Some even owe the social insurance of thousands of laborers. Therefore, it is extremely challenging to collect individual authorizations from all of them before it is valid for the corresponding trade union can file a lawsuit, not to mention the authorization fee.

Statistics from the HCMC Federation of Labor reveal that in the first six months of 2024, its Legal Advisory Team and Center provided advice to over 3,500 cases, either directly or via phone calls and the formal e-Portals of the trade unions at different levels.

In 2022, besides helping laborers to complete the procedure to file a lawsuit, the Legal Advisory Center also sent its officials to protect the right of tens of laborers at court or aided in claiming benefits worth hundreds of millions of VND. These findings highlight the increasing need for trade unions to be able to effectively represent workers in legal disputes.

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