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Methods of Resolving Labor Contract Disputes

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In the context of socio-economic development, resolving labor contract disputes has become increasingly common, affecting the rights of both employees and employers. The resolution of these disputes not only ensures fairness in labor relations but also contributes to a stable working environment. There are various methods for resolving labor contract disputes, ranging from direct negotiation between the parties, conciliation, to resolution at court or arbitration centers. Each method has its own advantages and disadvantages, and selecting the appropriate method will help optimize the dispute resolution outcome while protecting the legitimate rights of the involved parties.

What Is a Labor Contract Dispute?

Methods of Resolving Labor Contract Disputes

Pursuant to the provisions of the Labor Code 2019, a labor dispute is defined as follows:

“A labor dispute is a dispute over rights, obligations, and interests arising between the parties during the establishment, performance, or termination of labor relations; disputes between representative organizations of employees; disputes arising from relations directly related to labor relations.”

Labor disputes are not merely conflicts over conduct related to the activities or functions of employees and employers, but disputes concerning the entire process of the labor relationship.

Therefore, resolving labor disputes refers to activities aimed at settling instability in labor relations, restoring the legitimate rights and interests of the parties, and enabling the parties to continue consolidating, maintaining, and performing labor relations in a harmonious manner.

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Classification of Labor Disputes

**Individual labor disputes between employees and employers**

Individual labor disputes between employees and employers; between employees and enterprises or organizations sending employees to work abroad under contract; between leased employees and the employer leasing them.

**Collective labor disputes with employers**

Collective labor disputes over rights or interests between one or more representative organizations of employees and one or more employers or employer organizations.

Methods for Resolving Labor Disputes

Methods of Resolving Labor Contract Disputes

Individual Labor Disputes Between Employees and Employers

**Sequence for Resolving Individual Labor Disputes**

+ The grassroots labor conciliation council or district-level labor conciliator shall conduct conciliation no later than 7 days from the date of receiving the conciliation request. Both disputing parties or their authorized representatives must be present at the conciliation session. The grassroots labor conciliation council shall propose a conciliation plan for the parties to consider.

  • If accepted, a successful conciliation record shall be prepared. Both parties are obligated to comply with the agreements recorded in the record.
  • If unsuccessful, an unsuccessful conciliation record shall be prepared. Each disputing party has the right to request resolution by the People’s Court.

+ The disputing parties have the right to directly file a labor case with the People’s Court without necessarily going through the grassroots labor conciliation council or district-level labor conciliator in certain cases:

  • Disputes over disciplinary measures in the form of dismissal or unilateral termination of the labor contract;
  • Disputes over compensation for damages or allowances upon termination of the labor contract;
  • Disputes between domestic workers and employers;
  • Disputes between retired employees and employers or social insurance agencies, or between employers and social insurance agencies;
  • Disputes over compensation for damages between employees and enterprises or organizations sending employees to work abroad under contract.

Collective Labor Disputes with Employers

**Sequence for Resolving Collective Labor Disputes**

+ The grassroots labor conciliation council or district-level labor conciliator shall conduct conciliation no later than 7 days from the date of receiving the conciliation request. Both disputing parties or their authorized representatives must be present at the conciliation session. The grassroots labor conciliation council shall propose a conciliation plan for the parties to consider.

  • If accepted, a successful conciliation record shall be prepared. Both parties are obligated to comply with the agreements recorded in the record.
  • If unsuccessful, an unsuccessful conciliation record shall be prepared, recording the opinions of both parties and the council. Each party or both parties have the right to request resolution by the provincial labor arbitration council.

+ The provincial labor arbitration council is responsible for conducting conciliation and resolving the dispute no later than 10 days from receipt of the request.

At the dispute resolution session, authorized representatives of both disputing parties must be present. If necessary, the session may include representatives from the superior trade union of the grassroots trade union and representatives from state agencies.

The provincial labor arbitration council shall propose a conciliation plan for the parties to consider:

  • If accepted, a successful conciliation record shall be prepared. Both parties are obligated to comply with the agreements recorded in the record;
  • If unsuccessful, an unsuccessful conciliation record shall be prepared. The provincial labor arbitration council shall resolve the dispute by its own decision and immediately notify both parties. If neither party objects, the decision shall take effect. In the case of collective labor disputes where the labor collective does not agree with the decision of the labor arbitration council, it has the right to request resolution by the People’s Court or to strike; the employer has the right to request the court to review the decision of the labor arbitration council (this request does not prevent the right to strike of the labor collective).

Labor Disputes Not Required to Go Through Conciliation Procedures

  • Disputes over disciplinary measures in the form of dismissal or unilateral termination of the labor contract;
  • Disputes over compensation for damages or allowances upon termination of the labor contract;
  • Disputes between domestic workers and employers;
  • Disputes over social insurance in accordance with social insurance laws, health insurance in accordance with health insurance laws, unemployment insurance in accordance with employment laws, occupational accidents and occupational diseases in accordance with occupational safety and hygiene laws;
  • Disputes over compensation for damages between employees and enterprises or organizations sending employees to work abroad under contract;
  • Disputes between leased employees and the employer leasing them.

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What Rights and Obligations Do the Disputing Parties Have in Labor Dispute Resolution?

Pursuant to Article 182 of the Labor Code 2019, the rights and obligations of the parties in labor dispute resolution are as follows:

**Rights and Obligations of the Parties in Labor Dispute Resolution**

1. In resolving labor disputes, the parties have the following rights:

a) Directly or through representatives participate in the resolution process;
b) Withdraw or modify the content of their request;
c) Request replacement of the person conducting labor dispute resolution if there are grounds to believe that such person may not be impartial or objective.

2. In resolving labor disputes, the parties have the following obligations:

a) Provide complete and timely documents and evidence to prove their claims;
b) Comply with agreements reached, decisions of the labor arbitration council, and effective court judgments or decisions.

Accordingly, the parties have the following rights in labor dispute resolution:

– Directly or through representatives participate in the resolution process;
– Withdraw or modify the content of their request;
– Request replacement of the person conducting labor dispute resolution if there are grounds to believe that such person may not be impartial or objective.

At the same time, the parties have the following obligations in labor dispute resolution:

– Provide complete and timely documents and evidence to prove their claims;
– Comply with agreements reached, decisions of the labor arbitration council, and effective court judgments or decisions.

Who Has Jurisdiction to Resolve Labor Disputes?

Pursuant to Article 181 of the Labor Code 2019, the relevant agencies and organizations in the labor dispute resolution process have the following responsibilities:

(1) State labor management agencies must closely cooperate with representative organizations of employees and employers. Their tasks include guiding, supporting, and assisting the parties in resolving labor disputes.

(2) The Ministry of Labor, Invalids and Social Affairs is responsible for organizing training and improving professional skills for labor conciliators and labor arbitrators to effectively resolve labor disputes.

(3) Specialized labor agencies under the People’s Committees, upon request, receive requests for labor dispute resolution. Their tasks include classifying, guiding, supporting, and assisting the parties in resolving labor disputes.

Within 05 working days, the agency receiving the labor dispute resolution request shall transfer the dossier to the labor conciliator if conciliation is requested, or to the labor arbitration council if arbitration is requested, or guide submission to the court if necessary.

Labor Contract Dispute Resolution Services at BKC Law

The labor contract dispute resolution service at BKC Law provides professional and effective support to clients. Our experienced team of lawyers advises and guides clients through each step of the process, from analyzing contract content, gathering evidence, to representing clients in negotiations or court proceedings. We are committed to protecting the legitimate rights of our clients, helping them achieve optimal and fair solutions in all labor-related matters.

To receive free legal consultation at BKC Law, please contact our lawyers using the following information:

Telephone: 0901 3333 41
Email: info@bkclaw.vn
Branch in District 1: 9th Floor, Diamond Plaza Building, 34 Le Duan Street, District 1, Ho Chi Minh City
Branch in Binh Tan: 41 Ten Lua Street, Binh Tan District, Ho Chi Minh City

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