Decision 4290/QD-TLD 2022 Regulations on financial management at grassroots-level trade unions

REGULATION

On revenue, expenditure, financial and asset management
at grassroots-level trade unions
(Issued together with the Decision No. 4290/QD-TLD dated March 01, 2022 of the Presidium of the Vietnam General Confederation of Labor)

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Regulation regulates revenue, expenditure, financial and asset management at grassroots-level trade unions of the Vietnam Trade Union system.

Article 2. Subjects of application

The subjects of application are grassroots-level trade unions, trade unions according to the provisions of the Statutes of Vietnamese Trade Unions.

(The National Defense Trade Union and the People's Public Security Trade Union shall comply with the guidance of the Ministry of National Defense and the Ministry of Public Security, respectively).

Article 3. Principles of revenue, expenditure, financial and asset management at grassroots-level trade unions

1. The finance at grassroots-level trade unions is a part of the trade union finance, which is used for the performance of functions and duties of grassroots-level trade unions in accordance with the Law on Trade Union and the Statutes of Vietnamese Trade Unions.

2. Based on the financial expenditure regime of the State and the Vietnam General Confederation of Labor, financial resources of grassroots-level trade unions in use and the actual trade union activities of units, executive committees of grassroots-level trade unions promulgate the internal regulation on revenue, expenditure, financial and asset management of the trade union for implementation.

3. Grassroots-level trade unions must collect correctly, fully and promptly the revenues as decentralized by the Vietnam General Confederation of Labor. The grassroots-level trade unions must make expenditures to the right subjects, in an economical, efficient, public and transparent manner, and implement the financial management regime according to the State's regulations and the provisions of Vietnam General Confederation of Labor.

Chapter II

SPECIFIC REGULATIONS

Article 4. Sources of trade union finance

1. Collection of trade union dues

- Trade union dues are paid by trade union members.

- The method of collecting trade union dues shall comply with the Decision No. 1908/QD-TLD dated December 19, 2016 of the Vietnam General Confederation of Labor on management of trade union finance and assets, collection and distribution of revenues and grant of rewards and imposition of sanctions arising from collection and payment of trade union finance.

2. Collection of trade union funds

- Trade union funds shall be paid by agencies, organizations and enterprises in accordance with the law and decisions of the Vietnam General Confederation of Labor.

- The method of collecting trade union funds shall comply with the Decision No. 1908/QD-TLD dated December 19, 2016 of the Vietnam General Confederation of Labor.

3. Other revenues

Other revenue sources shall comply with Clause 4, Article 26 of the Law on Trade Unions and the Decision No. 1908/QD-TLD dated December 19, 2016 of the Vietnam General Confederation of Labor, including:

- Funds provided by agencies, organizations and enterprises for procurement of means of trade union activities, and support for operational funds for grassroots-level trade unions; funds for organizing coordination activities such as: organizing emulation movements, cultural and sports activities, sightseeing tours, commendation and welfare, etc. of trade union representatives, trade union members, civil servants, public employees, workers and laborers (hereinafter referred to as trade union members and employees) and a number of activities to encourage and commend children of trade union members and employees; support of domestic organizations and individuals to grassroots-level trade unions.

- Revenues from cultural and sports activities; property transfer and liquidation; revenues from interest on deposits and dividends; revenues from economic activities, services of grassroots-level trade unions, etc.

Article 5. Grassroots-level trade unions’ financial sources used and allocated for expenditure items

1. Grassroots-level trade unions are allowed to use 75% of the trade union funds, 60% of the trade union dues as prescribed by the Presidium of the Vietnam General Confederation of Labor and 100% of the total other revenue of the units in accordance with the law and the regulations of the Vietnam General Confederation of Labor.

2. The revenue from trade union dues from grassroots-level trade unions can be allocated to use for the following expenditure items:

2.1. Expenditures on wages, allowances to full-time trade union representatives and allowances to trade union representatives, up to 45% of the revenue from trade union dues to be used at grassroots-level trade unions. In case of shortage, grassroots-level trade unions must consider reducing the subjects and levels of allowances to trade union representatives in conformity with the allocated financial resources.

2.2. Expenditures on visiting trade union members at least 40% of the revenue from trade union dues to be used at grassroots-level trade unions.

2.3. Other expenditures up to 15% of the revenue from trade union dues to be used at grassroots-level trade unions.

3. The revenue of trade union funds from grassroots-level trade unions can be allocated to use for the following expenditure items:

3.1. Direct expenditures on care, protection, training, retraining and further training of trade union members and employees at least 60% of the revenue from trade union funds to be used at grassroots-level trade unions. At units with complicated labor relations, grassroots-level trade unions shall spend at least 25% of the fund of this expenditure item to reserve for activities to protect trade union members and employees; if this expenditure is not used in 2 consecutive years, it can be transferred to expenditure on the contents of this expenditure item.

3.2. Expenditures on advocacy, mobilization for trade union members and employees up to 25% of the revenue from trade union funds to be used at grassroots-level trade unions.

3.3. Expenditures on administrative management up to 15% of the revenue from trade union funds to be used at grassroots-level trade unions.

4. If the contents with the maximum rate of expenditure are not fully spent, additional expenditures shall be made for the items with the minimum rate (if the expenditures in sections 2.1, 2.3, 3.2, 3.3 are not fully spent, additional expenditures shall be made for sections 2.2, 3.1).

5. Other revenue sources: Grassroots-level trade unions shall decide on the allocation to expenditure items, expenditure rates and allowed additional subjects other than those specified in Article 6 of this Decision.

Article 6. Financial expenditures at grassroots-level trade unions

1. Direct expenditures on care, protection, training, retraining and further training of trade union members and employees.

1.1. Expenditures on representation and protection of the rights and legitimate interests of trade union members and employees:

- Expenditures on consulting activities to support grassroots-level trade unions to join with the employer in formulating the wage scales, wage tables, labor norms, wage unit, wage payment regulations and bonus regulations; internal working regulations, other regulations and agreements; collective bargaining, signing, dissemination and supervision of the implementation of the collective labor agreements; dialogue with employers to resolve issues related to employees' rights and interests; participating in formulating the State's regimes and policies related to the rights and interests of trade union members and employees; supervision on the implementation of the law on trade union employees.

- Expenditures on legal counseling for employees on labor, trade unions, occupational safety and health, social insurance, health insurance and other laws related to the lawful and legitimate rights and interests of employees.

- Expenditures on consulting, protecting grassroots-level trade union representatives in case their employers discriminate or cause disadvantages to grassroots-level trade union representatives that establish, join and operate trade unions.

- Expenditures on initiating lawsuits, participating in the settlement of collective labor disputes and individual labor disputes.

- Expenditures on helping grassroots-level trade unions organize and lead strikes in accordance with law.

- Expenditures on fire prevention and fighting, occupational safety and health, and environmental protection according to the Law on Occupational Safety and Health under the responsibility of trade unions.

- Expenditures on organizing seminars on industrial relations; forms of propaganda and dissemination of laws on labor, trade unions, social insurance, health insurance, unemployment insurance, occupational safety and health; training and further training for employees on occupational safety and health.

1.2. Expenditures on supporting organization of travel and vacation.

Coordinate with agencies, organizations and enterprises to participate in funding to organize travel and vacation for trade union members and employees.

1.3. Expenditures on visits and allowances.

a) Expenditures on visiting trade union members.

- Expenditures on visiting trade union members who are sick or on maternity leave, suffers an accident, in case of death of family (biological parents or parents-in-law; spouses, children) and death, marriage of trade union members.

- Expenditures on visiting and giving gifts to trade union members on public holidays, etc.; date of establishment of Vietnam Trade Unions on July 28; giving birthday gifts to trade union members; giving gifts to trade union representatives when they no longer join executive committees of grassroots-level trade unions.

b) Expenditures on subsidizing trade union members and employees.

Expenditures on subsidizing trade union members and employees facing difficulties due to occupational accidents, risk accidents, affected by natural disasters, epidemics, fires, fatal diseases, and Agent Orange causing damage to health or property.

The expenditure level of visiting and subsidizing trade union members and those who are not trade union members shall be regulated by grassroots-level trade unions.

1.4. Expenditures on encouragement and commendation

- Expenditures on rewards in cash together with other forms of commendation for trade union representatives and trade union members.

- Expenditures on rewarding employees with excellent achievements at work.

- Expenditures on rewarding children of trade union members and employees with typical achievements (distinction and high distinction) in study and training depending on each unit, under the specific commendation regulations of executive committees of grassroots-level trade unions for children of trade union members and employees.

- Expenditures on coordinating and organizing activities on International Children's Day and Mid-Autumn Festival.

- Expenditures on commending specialized activities, commending financial revenues in accordance with the regulations of the Vietnam General Confederation of Labor.

1.5. Expenditures on training

- Expenditures on remuneration of lecturers, training for students, drinking water, materials, lease of halls, equipment for courses and other administrative expenses of professional training courses organized by grassroots-level trade unions.

- Expenditures on purchase of materials, travel expenses for trade union members and employees sent by grassroots-level trade unions to attend professional training courses.

- Expenditures on coordinating the organization of education and professional skills training for employees.

- Expenditures on support for female employees with child under 36 months old who are sent by grassroots-level trade unions to participate in training courses.

2. Expenditures on advocacy and mobilization of trade union members and employees

2.1. Expenditures on advocacy and mobilization.

- Expenditures on buying books, newspapers, magazines and publications of trade union organizations such as: Labor Newspaper, Labor and Trade Union Magazine, Topics on Occupational Safety and Health and books and publications of Labor Publishing House, etc. for advocacy and education of grassroots-level trade unions.

- Expenditures on advocacy, education on politics, ideology, common law and learning and following Ho Chi Minh's thought, morality and life style.

- Expenditures on papers, pens and remuneration for propaganda activities on bulletin boards, radio, wall newspapers, information networks of grassroots-level trade unions.

2.2. Expenditures on developing trade union members, establishing grassroots-level trade unions, building sound and strong grassroots-level trade unions.

- Expenditures on propaganda and introduction about the trade union organization and the Statutes of Vietnamese Trade Unions; working, discussing with employers about trade union activities, developing trade union members, establishing grassroots-level trade unions.

- Expenditures on overtime training for trade union members, employees and trade union representatives to directly meet, propagate and mobilize employees to join trade union organizations.

- Expenditures on organizing the admission of trade union members, establishing and launching grassroots-level trade unions, rewarding individuals with outstanding achievements in mobilization for the establishment of grassroots-level trade unions.

- Expenditures on building sound and strong grassroots-level trade unions; assessment and classification of members; classification of trade union divisions, trade union groups; organization of training for trade union divisions and trade union groups on building sound and strong grassroots-level trade unions, commendation for building sound and strong trade unions.

- Expenditures on development of trade union members, establishment of grassroots-level trade unions, and building of sound and strong grassroots-level trade unions, which have been spent by the higher-level trade unions, shall not be paid by the lower-level trade unions.

2.3. Expenditures on organization of emulation movements.

- Expenditures on coordinating in and organizing emulation launching; preliminary conference and final conference on emulation and commendation for collectives and individuals with outstanding achievements in emulation movements.

- Expenditure on organizing meetings and commend typical and advanced collectives and individuals in emulation movements and trade union thematic activities.

- Expenditure on organizing contests for good trade union representatives.

2.4. Expenditures on organizing cultural and sports activities.

- Expenditures on supporting the movement activities to build cultural units; prevention of social evils for trade union members and employees; expenditures on supporting the employees to participate in cultural and sports activities; expenditures on commendation through reviewing cultural and sports activities and social evils prevention activities of grassroots-level trade unions.

- Expenditures on supporting the purchase of means of cultural, performing arts and sports activities.

- Expenditures on fostering for the Organizing Committee, athletes and actors participating in art shows and sports competitions organized by grassroots-level trade unions and higher-level trade unions; expenditures on commending collectives and individuals winning prizes in concerts and sports festivals organized by grassroots-level trade unions.

2.5. Expenditures on propaganda on gender, gender equality.

- Expenditures on propaganda on gender, gender equality and integration of gender issues in population, reproductive health, family planning, and domestic violence prevention.

- Expenditures on supporting the purchase of supplies and equipment for pre-primary schools, nursery schools at the unit (if any); support trade union members and employees whose children are sent to pre-primary schools, nursery schools.

- Expenditures on propaganda and organization of activities on International Women's Day (March 8), Vietnamese Women's Day (October 20), Vietnamese Family Day (June 28), International Day of Happiness (March 20), Vietnam's Population Day (December 26).

- Expenditures on activities of the public female employee's committee, the grassroots-level female employees' club, the contest for good female representatives, the thematic contest for female employees, and the “capable of national affairs and duteous at housework” movement.

2.6. Expenditures on organization of the general meetings of grassroots-level trade unions and trade unions, including: decoration, celebrations, printing documents, mission allowance for delegates, drinking water, conferences, etc.

3. Expenditures on administration management

- Meetings of executive committees, standing committees of grassroots-level trade unions, trade unions, member grassroots-level trade unions, and trade union divisions.

- Expenditures on purchase of stationery, property, working tools, minor repairs to the trade union's office, postage, communication, business trip expenses, drinking water, reception, fees incurred at the bank where grassroots-level trade unions opens a trading account.

- Expenditures on means of transport: lease of means of transport, ferry fees and charges, etc.

4. Expenditures on wages, allowances and other wage-based amounts payable:

Wages, allowances and other wage-based amounts payable of grassroots-level trade unions shall comply with the Decision No. 3226/QD-TLD dated September 20, 2021 of the Presidium of the Vietnam General Confederation of Labor promulgating the regulations on allowances for trade union representatives.

5. Other expenditures:

- Expenditures on coordinating activities with other socio-political organizations, etc.

- Expenditures on completing the procedures for exemplary trade union members to be admitted to the Communist Party of Vietnam.

Article 7. Classification of some expenditures of grassroots-level trade unions

1. It is the responsibility of the enterprise owners, the heads of agencies and units using welfare funds, funds of agencies and units to organize emulation movements, learning of culture, cultural-sports activities, sightseeing tours, welfare, subsidies, support for the employees on public holidays and take care and organize activities for the employees’ child according to Article 24 of the 2012 Law on Trade Unions.

2. The means of operation of grassroots-level trade unions shall be provided by the enterprise owners, heads of agencies and units (without fee collection) according to Article 24 of the 2012 Law on Trade Unions.

3. Responsibilities for expenditures for additional income of the trade union representatives of the enterprise:

- The wages paid according to production and business results for the full-time trade union representatives in state enterprises shall be paid by enterprises in accordance with Clause 5, Article 24 of the 2012 Law on Trade Unions; Regulations of the Secretariat of the Party Central Committee and guidelines of functional agencies.

- The wages paid according to production and business results for the full-time trade union representatives in the non-state sector shall comply with the collective labor agreements and the regulations on internal expenditures of the units.

4. If the part-time allowance of the grassroots union president is taken from other sources, it will not be taken from the trade union finance.

5. The expenditures for activities of the People's Inspection Boards, activities for gender equality and for the advancement of women, family planning activities, activities of building cultural life of workers in industrial parks shall be responsibilities of the enterprises, agencies and units in accordance with regulations of the State and the relevant functional agencies.

Article 8. Management of assets at grassroots-level trade unions

Grassroots-level trade unions shall manage the assets in accordance with the law and the regulations of the Vietnam General Confederation of Labor.

Chapter III

INSPECTION, SUPERVISION, COMMENDATION AND HANDLING OF VIOLATIONS

Article 9. Management, inspection, supervision of finance and assets of trade unions

1. The management of finance and assets of grassroots-level trade unions shall comply with the current law provisions and decisions of the Vietnam General Confederation of Labor.

2. The estimates and finalization of revenues and expenditures and financial management of grassroots-level trade unions must be made public according to the regulations of Vietnam General Confederation of Labor.

3. The revenues, expenditures, management of finance and assets of grassroots-level trade unions must be fully reflected in the accounting books and subject to the supervision of trade union members and employees at the units.

4. Inspection committees of grassroots-level trade unions are responsible for inspecting the annual elaboration and implementation of estimates, finalization of revenues and expenditures, management of finance and assets of grassroots-level trade unions.

Article 10. Commendation and handling of violations

- Grassroots-level trade unions, trade union representatives and trade union members who well implement this Regulation shall be commended according to the Commendation Regulation of the Vietnam General Confederation of Labor.

- Grassroots-level trade unions, trade union representatives and trade union members who commit violations in the revenues, expenditures, management of finance and assets of trade union shall, depending on the severity of their violations, be handled in accordance with the law and the Vietnam General Confederation of Labor.