Tiếng Việt
中文Short answer: The procedure for establishing a grassroots trade union is currently governed by Section 13 of Guidance No. 38/HD-TLĐ of 2024 (guiding the implementation of the Charter of the Vietnam Trade Union, 13th Congress, promulgated together with Decision No. 2399/QĐ-TLĐ of 2024): form a campaign committee (at least 03 members); once at least 05 persons have voluntarily joined, hold the founding congress and request recognition from the higher-level trade union. Grassroots trade union funds are used to carry out trade union tasks, primarily caring for the material and spiritual life of union members and employees.
Legal basis
- Trade Union Law 2024 (No. 50/2024/QH15, effective from 1 July 2025);
- Charter of the Vietnam Trade Union, 13th Congress (promulgated together with Decision No. 2399/QĐ-TLĐ of 2024);
- Guidance No. 38/HD-TLĐ of 2024 of the Vietnam General Confederation of Labour (Section 13 — establishing grassroots-level trade unions);
- Decision No. 4290/QĐ-TLĐ of 2022 (collection, expenditure, and financial and asset management at grassroots trade unions); Decision No. 1408/QĐ-TLĐ of 2024 (effective 1 December 2024 — management of trade union finance and assets).
Procedure for establishing a grassroots trade union
Step 1. Form a campaign committee for the establishment of a grassroots trade union
Where no grassroots trade union exists, union members or employees are entitled to form a campaign committee for establishing a grassroots trade union. The campaign committee comprises at least 03 persons (including the head and members) and is tasked with propaganda and campaigning for employees to join the trade union, and organizing the founding congress.
Related services
M&A, Equity Transfer and Project Transfer
If you are preparing an equity transfer, M&A transaction, project transfer or restructuring, ANT Legal can help review legal risks and transaction structure.
Step 2. Campaign until at least 05 persons have joined
When at least 05 persons (including union members and employees who have submitted voluntary applications to join the Vietnam Trade Union) join together to establish a grassroots trade union, the campaign committee prepares and organizes the founding congress under the guidance of the higher-level trade union.
Step 3. Hold the founding congress
The congress is organized and chaired by the campaign committee; participants include the campaign committee, members and employees with applications to join, and representatives of the higher-level trade union (the employer and employees without applications may be invited to attend and witness after obtaining the opinion of the directly superior trade union). The congress’s agenda includes: declaring the establishment, announcing the list of employees voluntarily joining, electing the executive committee and the chair of the grassroots trade union, and adopting the activity plan.
Step 4. Request recognition
After the congress, complete the dossier requesting recognition from the higher-level trade union, comprising: the written request for recognition of members and the grassroots trade union; election results; the member list; and the minutes of the congress and the vote-counting minutes.
What may grassroots trade union funds be used for?
Grassroots trade union funds are formed from trade union dues (the enterprise contributes 2% of the wage fund used as the basis for compulsory social insurance contributions), member dues, and other revenue sources. Under Decision No. 4290/QĐ-TLĐ of 2022, a grassroots trade union may use 75% of trade union dues collected, 60% of member dues collected, and 100% of other revenues of the unit to carry out the following tasks:
- Caring for the material and spiritual life of union members and employees: visiting and providing allowances in cases of illness, maternity, hardship, or difficulty; organizing cultural and sports activities; encouraging and rewarding employees and their children with outstanding achievements;
- Representing and protecting the lawful and legitimate rights and interests of union members and employees; negotiating, concluding, and supervising collective labor agreements;
- Propaganda and education on the Party’s guidelines and policies and the State’s laws; improving professional qualifications and vocational skills;
- Developing membership and building a strong grassroots trade union; training and developing trade union cadres;
- Expenditure on the operation of the trade union apparatus and other expenditure tasks as prescribed.
Frequently asked questions
May a grassroots trade union use its funds to care for the material and spiritual life of employees?
Yes. This is one of the main expenditure tasks of grassroots trade union funds (visits, allowances, cultural and sports activities, rewards, etc.).
Is an enterprise required to establish a grassroots trade union?
The law does not require every enterprise to establish a grassroots trade union; establishment originates from the voluntary participation of employees when at least 05 persons are eligible. However, the obligation to contribute trade union dues (2%) still applies to enterprises employing labor as prescribed.
To establish a grassroots trade union in accordance with the prescribed procedure, or to review your enterprise’s trade union financial obligations, please contact an ANT Legal lawyer for review and advice before proceeding.
