Collective labour agreements and internal labour regulations are among the most important legal documents in human resource management for FDI companies in Vietnam. Properly drafting these documents helps enterprises comply with the Labour Code, reduce legal risks, and build stable labour relations. These documents should both protect employees’ lawful rights and interests and support enterprises in managing their workforce effectively.
In the article below, Law Plus analyses the key points enterprises should note when developing collective labour agreements and issuing internal labour regulations in compliance with the law.
1. Legal basis for collective labour agreements and internal labour regulations
1.1. Regulations on collective labour agreements
Collective labour agreements are regulated under Chapter V of the 2019 Labour Code, from Article 75 to Article 89. Under Article 75, a collective labour agreement is a written document recording the results of collective bargaining between the employer and the employees’ representative organisation.
According to Article 75 of the 2019 Labour Code, a collective labour agreement records the results of collective bargaining between the employer and the grassroots-level employees’ representative organisation. The agreement sets out working conditions, as well as the rights, obligations, and responsibilities of the parties in the employment relationship. Under Article 76 of the 2019 Labour Code, a collective labour agreement must not be contrary to the law and must not reduce employees’ rights and benefits compared with those provided by law or by a higher-level collective labour agreement. The State encourages the parties to agree on terms that are more favourable to employees than the minimum standards prescribed by law.
Therefore, developing a collective labour agreement should not be treated as a mere formality. If properly prepared, the agreement can help enterprises build trust and reduce the risk of labour disputes.
1.2. Regulations on internal labour regulations
Under Article 118 of the 2019 Labour Code, an employer that employs 10 or more employees must issue written internal labour regulations. These regulations must include key matters such as working hours, workplace order, occupational safety, protection of assets, protection of business secrets and technological secrets, information confidentiality, prevention and handling of sexual harassment in the workplace, labour discipline, and material liability.
According to Article 119 of the 2019 Labour Code, in certain cases, internal labour regulations must be registered with the competent state labour authority before being applied. If the internal labour regulations are not properly developed or registered in accordance with the law, an enterprise’s decision to impose labour discipline may be considered unlawful.
2. Principles for developing collective labour agreements and internal labour regulations
2.1. Compliance with the law
The first principle is that all contents must comply with the current labour law. Enterprises must not include in collective labour agreements or internal labour regulations any provisions that reduce employees’ rights and benefits compared with those prescribed by law.
Enterprises must not set wages lower than the regional minimum wage under Article 91 of the 2019 Labour Code. They also must not create additional forms of labour discipline beyond the four forms listed in Article 124 of the 2019 Labour Code.
Therefore, before issuing these documents, enterprises should carefully review the relevant legal basis. This is a necessary step to limit future legal risks.
2.2. Balancing the interests of the enterprise and employees
An effective collective labour agreement must reflect the interests of both parties. Employees need to see that their rights and interests are respected. At the same time, enterprises need a basis for stable management and productivity maintenance.
Therefore, when developing a collective labour agreement, enterprises should select practical and relevant matters. Issues relating to salary, bonuses, welfare, training, and occupational safety are often of particular concern to employees.
However, enterprises should also consider their financial capacity and operational characteristics. A policy that is too broad but cannot be implemented may create unrealistic expectations.
2.3. Clarity, accessibility, and applicability
Collective labour agreements and internal labour regulations should be written in clear language. The provisions should not be too general. If a clause can be interpreted in different ways, disputes may easily arise.
For internal labour regulations, enterprises should clearly describe the acts of violation, the handling procedure, and the responsibilities of each party. Employees should also have the right to provide explanations when disciplinary action is being considered.
Under Clause 4, Article 118 of the 2019 Labour Code, after internal labour regulations are issued, they must be communicated to employees and posted at necessary locations within the enterprise. Therefore, clear and accessible language is an important condition for consistent implementation.
3. Process for developing collective labour agreements and internal labour regulations
3.1. Reviewing the law and the enterprise’s actual situation
First, enterprises need to review the applicable legal regulations. At the same time, they should assess their current human resource management practices.
Each enterprise has a different size, business sector, and labour structure. Therefore, a single template should not be used for all cases. The content of the documents should accurately reflect how the enterprise operates.
This review helps enterprises identify the issues that need to be regulated. It also helps avoid including unsuitable provisions in the documents.
3.2. Consulting with the employees’ representative organisation
For collective labour agreements, collective bargaining is a mandatory step. When a valid request for collective bargaining is made, the employer is responsible for participating in and organising the bargaining process in accordance with Articles 65 and 68 of the 2019 Labour Code.
For internal labour regulations, before issuing, amending, or supplementing them, the employer must consult the grassroots-level employees’ representative organisation, if any, in accordance with Clause 3, Article 118 of the 2019 Labour Code. This consultation should be recorded in minutes and retained in the dossier for issuing and registering the internal labour regulations.
This exchange helps the parties better understand each other’s expectations. Employees have the opportunity to express their views on rights, benefits, and working conditions. Enterprises can also explain their financial limitations, business plans, and management needs.
3.3. Finalising, issuing, and submitting the collective labour agreement or registering the internal labour regulations
After the parties agree on the contents of the collective labour agreement, they prepare and sign the written agreement in accordance with Articles 77 and 78 of the 2019 Labour Code. The employer is responsible for submitting the collective labour agreement to the competent state labour authority in accordance with current legal guidance.
For internal labour regulations that are subject to registration, the enterprise must carry out the registration procedure with the competent state labour authority under Article 119 of the 2019 Labour Code and its detailed guiding documents. Only after the internal labour regulations have been registered, or are deemed to have been validly registered, can they serve as a legal basis for imposing labour discipline and claiming compensation for damage.
After issuance, enterprises should disseminate the collective labour agreement and internal labour regulations to all employees through appropriate methods, such as posting them at the workplace, sending internal emails, or conducting training sessions. This ensures that all employees are aware of and comply with these documents.
4. Key notes when developing collective labour agreements and internal labour regulations
When developing a collective labour agreement, enterprises should not mechanically copy available templates. A suitable agreement must be based on the actual needs of both the enterprise and its employees.
In addition, internal labour regulations should be updated periodically. When an enterprise changes its management model, expands its operations, or adjusts its labour structure, the internal labour regulations should also be reviewed.
Enterprises should also pay attention to consistency among the collective labour agreement, internal labour regulations, employment contracts, and other internal policies. If these documents contradict each other, their application will become difficult.
Finally, enterprises should retain records relating to issuance, consultation, registration, and dissemination of the documents. These records are important evidence in the event of inspections or labour disputes.
5. Conclusion
Developing a collective labour agreement and issuing internal labour regulations are important foundations for building stable labour relations within an enterprise. When carefully prepared, these documents help employees clearly understand their rights and obligations. At the same time, they provide enterprises with a clear basis for human resource management.
A suitable collective labour agreement can strengthen cohesion within the enterprise. Clear internal labour regulations can reduce risks when handling violations. Therefore, enterprises should view these documents as long-term management tools, rather than merely mandatory administrative procedures.