Rules on Preparing Trade Union Financial Revenue and Expenditure Estimates

How must enterprises report trade union finance to the higher-level trade union?

(1) Article 11 of the Regulations on management of trade union finance and assets; collection and distribution of revenue sources; and rewards and penalties for payment of trade union finance, issued together with Decision 1908/QD-TLD of 2016, provides as follows:

The trade union financial year runs from January 1 to December 31 of the calendar year.

– For trade union levels, the deadlines for reporting revenue and expenditure estimates and finalization are as follows:

+ The following year’s trade union financial revenue and expenditure estimates of provincial and city-level Labor Federations and equivalent bodies must be reported to the Vietnam General Confederation of Labor before November 30. Finalization of the previous year’s financial revenue and expenditure must be reported to the Vietnam General Confederation of Labor before March 31 of the following year.

+ Provincial and city-level Labor Federations and equivalent bodies shall specifically prescribe the timing for lower-level and affiliated units to submit estimate and finalization reports in a manner consistent with this Article.

– For public service units directly under the Vietnam General Confederation of Labor: estimates for the following year must be reported to the owner before November 15 each year. Finalization of revenue and expenditure for the previous year must be reported to the owner before March 15 of the following year.

Rules on Preparing Trade Union Financial Reports

According to Subsection 1 Section II of Guidance 47/HD-TLD of 2021 on implementing the regulations on management of trade union finance and assets and the accounting regime for grassroots trade unions:

II. MANAGEMENT OF FINANCE AND ASSETS OF GRASSROOTS TRADE UNIONS. 1. Preparation of reports on estimates and finalization of financial revenue and expenditure. Grassroots trade unions prepare reports on trade union financial revenue and expenditure estimates in connection with annual programs and activity plans using Form B14-TLD; annual financial revenue and expenditure finalization reports are prepared using Form B07-TLD. The time for submitting estimate and finalization reports to the higher-level trade union shall comply with the regulations of the provincial or city Labor Federation; the Central sectoral trade union or equivalent body; or the trade union of a corporation directly under the Vietnam General Confederation of Labor. Provincial and city Labor Federations; Central sectoral trade unions or equivalent bodies; and trade unions of corporations directly under the Vietnam General Confederation of Labor may require grassroots trade unions to prepare financial reports once a year.

What revenue sources does trade union finance include?

Pursuant to Article 5 of the Regulations on management of trade union finance and assets; collection and distribution of revenue sources; and rewards and penalties for payment of trade union finance, issued together with Decision 1908/QD-TLD of 2016:

– Trade union financial revenues:

Trade union financial revenues under Article 26 of the Law on Trade Unions 2012 and Decree 191/2013/ND-CP detailing trade union finance include:

+ Trade union membership fees.

+ Trade union funds.

+ Support from the State budget.

+ Other revenues from cultural, sports and economic activities of the trade union; from schemes, projects and programs assigned by the State; from aid and sponsorship by domestic and foreign organizations and individuals; interest on bank or treasury deposits, if any; proceeds from liquidation or sale of assets; recovery of expenditures made contrary to regime from trade union financial sources that have been finalized and approved by the competent authority…

– Trade union financial expenditures:

Trade union financial expenditures are implemented in accordance with Clause 2 Article 27 of the Law on Trade Unions 2012 and regulations of the Vietnam General Confederation of Labor.

Thus, trade union financial revenue sources include:

+ Trade union membership fees.

+ Trade union funds.

+ Support from the State budget.

+ Other revenues from cultural, sports and economic activities of the trade union; from schemes, projects and programs assigned by the State; from aid and sponsorship by domestic and foreign organizations and individuals; interest on bank or treasury deposits, if any; proceeds from liquidation or sale of assets; recovery of expenditures made contrary to regime from trade union financial sources that have been finalized and approved by the competent authority…

What are the rules on decentralized management of trade union finance?
Pursuant to Article 7 of the Regulations on management of trade union finance and assets; collection and distribution of revenue sources; and rewards and penalties for payment of trade union finance, issued together with Decision 1908/QD-TLD of 2016:

Decentralized management of trade union finance

(1) The Executive Committee, or Standing Committee, of the grassroots trade union is responsible for organizing the collection, expenditure and financial management tasks according to decentralization by the Vietnam General Confederation of Labor; preparing estimates, organizing implementation of estimates and finalization; publicly disclosing estimates and finalization of trade union financial revenue and expenditure; and developing and implementing the expenditure regulations of the grassroots trade union.

(2) The Standing Committee of the immediate higher-level trade union is responsible for performing the tasks of collection, expenditure and trade union financial management according to decentralization by the Vietnam General Confederation of Labor; preparing estimates, organizing implementation of estimates and finalization; publicly disclosing estimates and finalization; inspecting and guiding lower-level units in performing collection, expenditure and financial management tasks and paying funds to the higher-level trade union; and approving estimate and finalization reports of lower-level units.

(3) The Standing Committee of the provincial or city Labor Federation and equivalent body is responsible for performing the tasks of collection, expenditure and trade union financial management according to decentralization by the Vietnam General Confederation of Labor; deciding principles for preparing, allocating and approving estimates for lower-level units in accordance with regulations of the Vietnam General Confederation of Labor; preparing estimates, organizing implementation of estimates and finalization; publicly disclosing estimates and finalization; inspecting and guiding lower-level units in performing collection, expenditure and trade union financial management tasks and paying funds to the higher-level trade union; and approving estimate and finalization reports of lower-level units.

(4) The Presidium of the Vietnam General Confederation of Labor is responsible for directing and organizing the performance of collection, expenditure and financial management tasks of Vietnam’s trade union; deciding principles for preparing, reviewing and allocating annual trade union financial estimates; consolidating and approving estimates and finalization at the general estimate level and of lower-level units; inspecting and guiding lower-level units in performing collection, expenditure and trade union financial management tasks and paying funds to the Vietnam General Confederation of Labor; issuing regulations, rules and guidance on collection, distribution, use and management of trade union finance under Clause 2 Article 12 of Government Decree 191/2013/ND-CP detailing trade union finance; and approving annual estimates and finalization of trade union financial revenue and expenditure.

The above is our advisory content relating to the trade union financial reports that you are concerned with.