Obligation to pay 2% of union funds from 2025

On the morning of December 20, at the Presidential Palace, the Office of the President held a press conference to announce the President's Order on the laws passed by the 15th National Assembly at the 8th Session.

At the press conference, Mr. Ngo Duy Hieu - Vice President of the Vietnam General Confederation of Labor (VGCL) introduced the basic contents of the 2024 Trade Union Law.

The 2024 Trade Union Law was issued to overcome some limitations and shortcomings of the 2012 Trade Union Law.

The 2024 Trade Union Law consists of 6 chapters and 37 Articles; effective from July 1, 2025.

The 2024 Trade Union Law continues to affirm that the Vietnam Trade Union is a large political and social organization of the working class and laborers, established on a voluntary basis, and is a member of the political system led by the Communist Party of Vietnam.

Trade unions represent workers, cadres, civil servants, public employees, and workers, together with state agencies, economic organizations, and social organizations, to care for and protect the legitimate and legal rights and interests of workers.

At the same time, participate in state management, socio-economic management; supervision and social criticism; participate in inspection, examination and supervision of issues related to the rights and obligations of workers.

The 2024 Trade Union Law has added the right to establish, join and operate trade unions for "employees without labor relations"; stipulates the right to join and operate trade unions for "employees who are foreign citizens" (no right to establish).

Supplementing regulations on joining Vietnam Trade Union for workers' organizations at enterprises; more specifically regulating the organizational system of Vietnam Trade Union and international cooperation on trade unions; supplementing and clarifying prohibited acts.

In the newly passed law, ensuring union finances is an important content.

Accordingly, the regulation stipulates that agencies, organizations, units, enterprises, cooperatives, and cooperative unions in all economic sectors, regardless of where they have established or not established trade unions, must be obliged to pay trade union fees equal to 2% of the salary fund as the basis for compulsory social insurance contributions for employees.

At the same time, supplement regulations on considering exemption, reduction, and suspension of trade union fee payment for enterprises, cooperatives, and cooperative unions when encountering difficulties; supplement and clarify the tasks of paying trade union funds; supplement regulations on distributing trade union funds to workers' organizations at enterprises.

The 2024 Trade Union Law has added regulations to ensure publicity and transparency, further strengthening the inspection, examination, auditing and supervision of competent authorities in the management and use of trade union assets and finances, while ensuring the principle of financial autonomy of trade unions.

Clarifying the content of public disclosure of trade union finances, Mr. Ngo Duy Hieu said that the new law stipulates that the Vietnam General Confederation of Labor must report to the National Assembly every 2 years on the issue of collection, expenditure, management and use of trade union finances. At the same time, every 2 years, the State Audit will audit the finances of trade unions to report to the National Assembly.

Notably, the law also amends regulations to ensure union officials in the direction of:

Employers are not allowed to unilaterally terminate labor contracts, work contracts, fire, force to quit or transfer to other jobs for non-professional union officials without the written consensus of the "direct superior union".

The trade union is responsible for "representing the case according to the law" to file a lawsuit in court to protect the legitimate rights and interests of trade union officials when the employer terminates the labor contract, work contract, forces them to quit or illegally fire them, except in cases where trade union officials refuse.