Labor disputes and procedures for labor disputes resolution

1. What is a labor dispute?

Pursuant to the provisions of Article 179 of the Labor Code 2019, a labor dispute is a dispute about rights, obligations and interests arising between parties in the process of establishing, performing or terminating the labor relations; disputes between organizations representing for workers; disputes arising from a relationship directly related to the labor relations.

2. Types of labor disputes

Types of labor disputes include:

- Individual labor disputes between:

• Employee and employer.

• Employees and enterprises or organizations sending workers to work abroad under contracts.

• Employee sublease and sublease the employer.

- Collective labor disputes about rights or interests between:

• One or more organizations representing workers and employers.

• One or more organizations representing workers and one or more employers of organizations.

3. Labor dispute resolution

a. Settlement of individual labor disputes

- Entities competent to settle individual labor disputes:

• Labor mediator.

• Labor Arbitration Council.

• The People's Court.

-  Procedures for individual labor disputes resolution: Individual labor disputes must be resolved through the mediation procedure of the labor mediator before requesting the Labor Arbitration Council or the Court to resolve the dispute. 

- Labor disputes that are not required to go through conciliation procedures:

• Disputes about labor discipline in the form of dismissal.

• Disputes about the case of unilateral termination of the labor contract.

• Dispute over compensation for damage, benefits upon termination of labor contract.

• Disputes between domestic workers and employers.

• Disputes about social insurance, health insurance, unemployment insurance, occupational accident and occupational disease insurance.

• Disputes about compensation for damage between workers and enterprises or organizations sending workers to work abroad under contracts.

• Disputes between employees sublease and sublease the employer.

- The statute of limitations for requesting individual labor dispute resolution:

• The statute of limitations for requesting a labor mediator to mediate an individual labor dispute: 06 months (from the date of discovering the behavior in which the disputing party believes that his/her legitimate rights and interests are violated).

• The statute of limitations for requesting the Labor Arbitration Council to resolve an individual labor dispute: 09 months (from the date of discovering the behavior in which the disputing party believes that his/her legitimate rights and interests are violated).

• Statute of limitations for requesting the Court to resolve an individual labor dispute: 01 year (from the date of discovering the behavior in which the disputing party believes that his/her legitimate rights and interests are violated).

Note: In case the requester can prove that because of force majeure events, objective obstacles or other reasons as prescribed by law, they cannot claim within the prescribed time limit:

• Time of force majeure events, objective obstacles or such reasons shall not be included in the statute of limitations for requesting the resolution of individual labor disputes.

b. Settlement of collective labor disputes over rights

- Agencies competent to resolve collective labor disputes over rights:

• Labor mediator.

• Labor Arbitration Council.

• People's Court.

- Procedures for the resolution of collective labor disputes about rights: Collective labor disputes about rights must be resolved through the mediation procedure of the labor conciliator before requesting the Labor Arbitration Council to resolve or proceeding with the strike procedure.

- Statute of limitations for requesting the resolution of a collective labor dispute about rights

• The statute of limitations for requesting a labor mediator to mediate a collective labor dispute about rights: 06 months (from the date of discovering the behavior in which the disputing party believes that his/her legal rights have been violated).

• The statute of limitations for requesting the Labor Arbitration Council to resolve a collective labor dispute about rights: 09 months (from the date of discovering the behavior in which the disputing party believes that his/her legal rights have been violated).

• Statute of limitations for requesting a Court to resolve a collective labor dispute about rights: 01 year (from the date of discovering the behavior in which the disputing party believes that his/her legal rights have been violated).

c. Settlement of collective labor disputes over interests

- Agencies competent to resolve collective labor disputes about interests

• Labor mediator.

• Labor Arbitration Council.

- Procedures for the resolution of collective labor disputes about interests: Collective labor disputes about interests must be resolved through the mediation procedure of the labor conciliator before requesting the Labor Arbitration Council to resolve or proceeding with the strike procedure.

3. Legal basis

• Labor Code 2019.

• Decree 145/2020/ND-CP dated December 14, 2020 of the Government guiding the Labor Code on labor conditions and labor relations.