HOW MANY TYPES OF LABOR DISPUTES ARE THERE ACCORDING TO THE PROVISIONS OF THE LABOR CODE OF VIETNAM?

In recent years, labor disputes have become increasingly common, particularly those related to wage, income, and labor contract disputes. Establishing an appropriate mechanism for resolving individual labor disputes according to legal regulations will protect the legitimate rights and interests of workers and contribute to the stability of labor relations. So, what is a labor dispute? What are the principles and methods for resolving labor disputes? Let's explore these legal issues more specifically with OTIS LAWYERS through the article below!

What is a labor dispute?

A labor dispute is a conflict over rights and interests arising in labor relations between workers, labor collectives, and employers. These disputes include issues such as actual wages, working hours, working conditions, or other benefits such as social insurance and wage deficits. In some cases, labor disputes can also include resolving conflicts related to the termination of labor contracts, violations of labor safety regulations, or other issues related to the rights and interests of the parties involved in labor relations.

In other words, labor disputes are unresolved conflicts between individuals or groups of workers and employers regarding their rights and interests.

Characteristics of labor disputes

Understanding the characteristics of labor disputes is crucial for addressing issues related to rights and labor relations. Below are the three main characteristics of labor disputes:

Labor disputes are linked to labor relations

Labor disputes typically arise from the parties involved in labor relations, including disputes between workers and employers or between labor collectives and employers. Moreover, the subjects of labor disputes often relate to the content of labor relations, such as the legitimate rights and benefits stipulated in labor contracts, collective labor agreements, or internal regulations of enterprises.

For example, a labor dispute related to labor relations could involve issues about salaries and bonuses. A group of employees may feel that they are not receiving fair compensation for their work and contributions. They might believe that they are performing tasks that exceed the compensation they currently receive and demand a pay raise. Conversely, the company might have evaluation and compensation processes based on various factors, including experience, skills, and performance.

Labor disputes concern not only rights but also the interests of parties in labor relations

Unlike other disputes that often originate from illegal acts, labor disputes can occur even when there are no illegal actions. This characteristic is influenced by the nature of labor relations, legal adjustments, and market mechanism changes. In reality, labor relations are formed through agreements and negotiations between parties. Over time, one of the parties may not fulfill or become incompatible with the initial agreement. Consequently, disputes become inevitable when the rights and interests of both parties are affected.

Labor disputes depend on the scale and number of workers involved in the dispute

If a labor dispute occurs between an individual worker and an employer concerning the rights, obligations, and benefits of only that individual, it is considered an individual dispute. In individual labor disputes, the impact on business operations is typically limited, so they are often deemed not too serious. However, if multiple workers collectively oppose the employer over time, especially if they organize into a unified entity to fight for common rights, the dispute becomes collective in nature.

The impact level of collective disputes depends on the scope of the dispute. Labor disputes can directly affect the personal lives and families of workers and, at times, public security.

How many types of labor disputes are there?

According to Article 179 of the 2019 Labor Code, there are two types of labor disputes: individual labor disputes and collective labor disputes related to rights and benefits. Specifically:

• Individual labor disputes: These occur between an employee and an employer, between an employee and an enterprise or organization when the employee is sent to work abroad under a contract, as well as between a leased employee and the hiring employer.
• Collective labor disputes: These involve rights or benefits between one or more organizations representing employees and the employer, or between one or more organizations of employers.

Rights and obligations in resolving labor disputes according to Vietnamese law

According to Article 182 of the 2019 Labor Code, the parties involved in labor disputes have the following rights and obligations:

• Rights of the parties during the dispute resolution process
  •  Participate directly or through representatives in the resolution process;
  •  Withdraw or change the content of their request;
  •  Request a change of the person handling the labor dispute resolution if there are justified reasons to believe that the person may not be impartial or objective.
• Obligations of the parties during the dispute resolution process
  • Provide full and timely documents and evidence to support their requests;
  • Comply with reached agreements, decisions of the labor arbitration council, and effective court judgments and decisions.

Causes of labor disputes

Labor disputes occur due to three main reasons:

• Lack of compliance with the law;
• When material rights and interests are affected;
• Deterioration of personal relationships between the parties.

Among these causes, personal relationship issues account for over 85% of labor disputes. It is challenging for either party to admit and publicly apologize to the other due to legal knowledge, pride, and personal status.

In the existence and development of labor relations, disputes over rights and benefits are inevitable, especially in a market economy environment. Therefore, effective resolution of labor disputes is necessary to maintain harmonious labor relations and ensure stable business production and economic stability.

Principles of resolving labor disputes

According to Article 180 of the 2019 Labor Code, the resolution of labor disputes must adhere to the following principles:

• Principle of fairness, transparency, objectivity, and timeliness, in accordance with the law;
• Principle of protecting the legitimate rights and interests of the disputing parties;
• Principle of respecting the voluntary agreement rights of the disputing parties;
• Intermediary participation in the dispute resolution process at the request of all parties involved in the dispute.

Despite the occurrence of disputes, employees and employers must ultimately reconcile to continue working together. Therefore, the core purpose of resolving labor disputes is to resolve disagreements in labor relations, ensure the legal rights and legitimate interests of each disputing party, and ultimately aim to build progressive, harmonious, and stable labor relations.

Statute of Limitations for Labor Dispute Resolution and Labor Claims

According to Guideline No. 92/HD-TLĐ, the statute of limitations for requesting the court to resolve individual labor disputes and collective labor disputes concerning rights is one year from the date the disputing party discovers the act they believe violates their legal rights and interests (based on Clause 3 of Article 190 and Clause 3 of Article 194 of the Labor Code).

According to Clause 2 of Article 184 of the 2015 Civil Code, the court only applies the statute of limitations for labor dispute resolution at the request of one or both parties, provided this request is made before the trial court issues a judgment or decision resolving the case.

If a party requests the application of the statute of limitations, the court will suspend the resolution of the labor dispute if the statute of limitations has expired, as per Point e, Clause 1, Article 217 of the Civil Procedure Code. This suspension period is not included in the statute of limitations, and the calculation of the statute of limitations will restart according to both the Labor Code and the Civil Code.

Additionally, Guideline No. 92/HD-TLĐ also addresses court fees, costs, and civil procedural expenses, regulated by Resolution No. 326/2016/UBTVQH14 of the National Assembly Standing Committee dated December 30, 2016, on the levels of collection, exemption, reduction, collection, payment, management, and use of court fees and court procedural costs (Resolution No. 326/2016/UBTVQH14).

Methods for Resolving Labor Disputes

Individual Disputes Between Employees and Employers

According to Article 187 of the 2019 Labor Code, individual labor disputes are resolved by competent authorities and organizations such as labor mediators, labor arbitration councils, and people's courts. The resolution process at each competent authority or organization is as follows:

Resolution through Labor Mediators

As per Clause 1, Article 188 of the 2019 Labor Code, individual labor disputes must be resolved through labor mediators before requesting the labor arbitration council or the court to resolve the dispute, except for the following disputes which are not required to go through mediation:

• Related to disciplinary actions in the form of dismissal or unilateral termination of the labor contract;
• Regarding compensation, allowances upon termination of the labor contract;
• Between domestic workers and their employers;
• Regarding social insurance issues as prescribed by law, including social insurance, health insurance, unemployment insurance, occupational accident insurance, and occupational disease insurance;
• Related to compensation claims between employees and enterprises/organizations when employees work abroad under a contract;
• Between leased employees and the hiring employer.

For disputes that are not required to go through mediation or if the mediation period expires without mediation being conducted or if mediation fails, the disputing parties have the right to choose one of the following methods to resolve the dispute:

• Request the labor arbitration council to resolve the dispute as per Article 189 of the Labor Code;
• Request the court to resolve the dispute.

Resolution through Labor Arbitration Councils

In cases where individual labor disputes are not subject to mediation, or mediation fails, the disputing parties can request the labor arbitration council to intervene. If the labor arbitration council does not form or issue a decision within seven working days from the receipt of the request, the parties may request the court to resolve the dispute. If one party does not comply with the arbitration council's decision, the other party can request the court to resolve the case.

Resolution at People's Courts

Based on the above regulations, the people's court is the competent authority to resolve individual labor disputes in the following cases:

• The disputing parties can request the court to resolve the dispute without going through a mediator if mediation is not mandatory;
• If a party does not comply with the labor arbitration council's decision, the parties can request the court to resolve the dispute.

Collective Labor Disputes with Employers

The resolution of collective labor disputes is classified into resolving disputes over rights and disputes over benefits. The competent authorities for these are defined as follows:

• Competent authorities for resolving collective labor disputes over rights: Labor mediators, labor arbitration councils, and people's courts.
• Competent authorities for resolving collective labor disputes over benefits: Labor mediators and labor arbitration councils.

Authority to Resolve Collective Labor Disputes Over Rights

According to Clause 2 of Article 191 and Clause 2 of Article 195 of the 2019 Labor Code, both rights and benefits disputes in collective labor disputes must be resolved through mediation by labor mediators before requesting the labor arbitration council or proceeding with strike procedures.

The statute of limitations for resolving collective labor disputes over rights at different stages is as follows:

• The statute of limitations for requesting labor mediators to mediate a collective labor dispute over rights is six months from the date the disputing party discovers the act they believe violates their legal rights;
• The statute of limitations for requesting the labor arbitration council to resolve a collective labor dispute over rights is nine months from the date the disputing party discovers the act they believe violates their legal rights;
• The statute of limitations for requesting the court to resolve a collective labor dispute over rights is one year from the date the disputing party discovers the act they believe violates their legal rights.

Authority to Resolve Collective Labor Disputes Over Benefits

The authorities and individuals competent to resolve collective labor disputes over benefits include:

• Labor mediators;
• Labor arbitration councils.

Collective labor disputes over benefits must also be resolved through mediation by labor mediators before requesting the labor arbitration council or proceeding with strike procedures.

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