JOINT CIRCULAR

GUIDING ORGANIZATION AND OPERATION OF EMPLOYEES CONFERENCES IN THE JOINT-STOCK COMPANIES, LIMITED LIABILITY COMPANIES

Pursuant to the Regulation on the implementation of democracy in joint-stock companies, limited liability companies, issued together with Decree No.87/2007/ND-CP dated 28/5/2007 of the Government, Ministry of Labour - Invalids and Social Affairs and Vietnam General Confederation of Labour guide the organization and operation of the Meetings of employees in the joint-stock companies, limited liability companies, as follows:

I. GENERAL PROVISIONS

1. The scope and subjects of application

a. Scope of application: joint-stock companies, limited liability companies established and operating under the 2005 Enterprise Law (hereinafter referred to as company).

b. Subjects of application: the Boards of Management; Members’ Councils, Chairmen of the companies; General Directors, Directors of the Joint Stock companies, Limited Liability Companies (hereinafter referred to as company directors); Union Executive Committee or Provisional Union Executive Committee (hereinafter referred to as the Union Executive Committee of the company); employees in the Joint Stock companies, Limited Liability Companies.

c. To encourage the private enterprises, partnership to apply, to implement the provisions of this Joint Circular to hold the Conferences of employees, contributing to the sustainable development of enterprises.

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a. The holding of the Meetings of employees in the joint-stock companies, limited liability companies is to promote the direct democracy right of the employees; to facilitate the employee to be known, contributed opinions, made the decision and monitored issues related to rights, benefits, obligations and responsibilities of employees.

b. Through the implementation of direct democracy at the Meetings of employees, to build harmonious and stable labor relations contributing to prevention and limitation of labor disputes and to carry out democracy in the legal framework, building enterprises of sustainable development.

3. Principles of organization and operation of the Meetings of the employees.

a. The Meetings of the employees in the joint-stock companies, limited liability companies shall be held annually. In case of necessity, the Director or the Union Executive Committee may propose the irregular Meetings of the employees.

b. The Meeting of the employees shall be recognized as valid when attended by over two thirds of delegates decided to convene by Director and the company Union Executive Committee.

c. Resolution of the Meeting of the employees is valid when there are more than 50% of the official delegates voted.

II. CONTENTS OF THE MEETING OF EMPLOYEES

1. The contents of the meetings of employees at levels of departments, workshops

Managers of departments and the Workshop manager; group leaders, team leaders of production group, team: report the results of the implementation of planned targets of the previous year and targets, production and business tasks assigned in the plan year of the unit.

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The employees: to discuss solutions to complete and fulfill in access of the targets of production and business plans; propose the initiatives and recommendations to improve working conditions in the departments and divisions, workshops, production teams; raise proposals to company director and Union Executive Committee of company; discuss the new draft’s contents or draft amending and supplementing collective labor agreement, the new draft or draft amending and supplementing internal rules and regulations of the company.

Elect delegates to participate in the Meeting of employees of the company.

2. The contents of the Meeting of employees of the whole company

2.1. Ritual Part:

a. To elect the Presidium and secretary of the meeting:

- Presidium of the meeting includes: Director, Chairman of the company Trade Union; other members (decided by the meeting by voting), the Presidium shall preside over the meeting.

- Presidium prepares Secretary and gets the meeting’s vote. Secretary of the meeting shall be responsible for recording minute and resolution draft of the meeting.

b. Report on the meeting delegates.

2.2. The Content Part:

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- The results of manufacturing and trading in a year; the status of implementation of policies related to rights and interests of employees.

- The direction, planning tasks, development methods of production, business, plans for arrangement, organization of executive management apparatus, labor arrangements, innovation of equipment and technology in the future.

- Assessment on measures to ensure occupational hygiene and safety, of prevention and fighting of fire and explosion, environmental protection, improvement of working conditions, improvement of material and spiritual life, training and retraining for employees.

- The formulation and implementation of internal rules and regulations of the company, its amendments, and supplements to suit the situation of production, business, and management models of the company.

- Publication of the level of appropriating reward fund, welfare fund as decided by the General Meeting of Shareholders, the Members’ Council, deducting to pay trade union fees, social insurance, health insurance; the financial disclosure of the contents related to the employees.

- Answers the questions of delegates involved in the works of operating, managing, receiving, and settling proposals under the jurisdiction of the Director.

- Absorbs the contents to propose to the Board of Management, the Members’ Council, and General Meeting of Shareholders for settlement according to their competence.

b. Union Executive Committee of Company reports the following contents:

- The results of organizing activities of meeting of employees at level of departments, workshops, production teams and the recommendations of the laborers which have been gathered from the lower level meeting.

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- The use of welfare and reward funds and implementation of the collective labor agreement, the contents made, not been implemented yet, its cause.

- Presents draft’s contents of new collective labor agreement or draft of amendment and supplement of collective labor agreement.

- Reports on the recommendations of the collective of employees to the company director, the Board of Management, the Members’ Council, General Meeting of Shareholders.

- Absorbs the delegates’ commends on the issues of the role and responsibilities of Trade Unions.

c. Delegates discuss at the meeting.

d. Signing of new collective labor agreement or signing of amendment and supplement of collective labor agreement (when it has been completed negotiations by law).

e. Commendation, launch of the competition, signing of covenants to effort to fulfill the production and business targets in the plan year.

g. Vote to adopt Resolution of the meeting of employees.

3. The contents of the irregular meeting of employees

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III. MEETING ORGANIZATION

1. Time for organizing the meeting of employees

a. The meetings of employees in the departments, workshops, production teams are carried out after having the plan to hold the meeting of employees of company, having number delegates allocated to attend the meeting of employees of company.

b. The meeting of employees of company is held when having the plan of production, business of the following year passed by the Management Board, Members’ Council.

2. Form to hold the meeting of employees.

a. The General meetings are held in the companies with less than 100 employees.

b. The meetings of delegates are held in the companies with 100 employees or more.

c. The meetings of employees at level of the departments, workshops are held when the company hold meeting of delegates.

d. Irregular meetings: When there are big changes, affecting the production and business of the company, impacting directly to the rights and obligations of employees in the company, the Director or Union Executive Committee of company may propose the organization of the irregular meeting of employees.

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a. The General meeting

- Participants of the meeting include all employees having labor contracts with indefinite term, labor contracts with definite terms of full 12 to 36 months at the time of the meeting.

- In the companies that because of particular production and business, employees can not leave their positions, Directors and Union Executive Committees of the companies agree the participants of the meeting.

b. Meeting of delegates

- Participants of the meeting of delegates include representatives as a matter of course, and representatives to be elected from departments, workshops, team production according to structure and quantities agreed to decide by Director and Union Executive Committee of the company by the following principles:

+ Representatives as a matter of course include: Members of the Management Board, Members’ Council, director, deputy directors, chief accountant, Chairman, Vice Chairman, Members of Standing Union Executive Committee of company (Executive Committee members where there is no Standing); Party Secretary or Secretary of cell (where there is no Party); Secretary of the Communist Youth Union of Ho Chi Minh; Head of Inspection Committee; Head of Women's Affairs.

+ Representatives to be elected: The election of delegates to attend the meeting of employees of the company shall be conducted in the form of secret ballot vote or voting by a show of hands at the meeting of employees at level of departments, workshops, and the production teams.

The number of delegates to be elected shall be agreed, decided to allocate by the Director and Union Executive Committee of company on the basis of the number of employees of the departments, workshops, and the production teams.

Delegates to be elected at the meeting of employees of the company are the one who have more than 50% of the votes. If there are many people who have more than 50% of the votes, it shall be taken in order from the one who has the highest number of votes, counted down until sufficient number of delegates allocated; if the first vote has insufficient number of representatives allocated, it shall continue to vote until having sufficient number of representatives; In the case many representatives have the same number of votes exceeding the allocated number of delegates, it shall be continued to vote for these people to choose from the one who has the highest number of votes till sufficient number of delegates allocated.

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Participants in the meeting are the employees in the departments, workshops, the production teams.

d. Irregular meeting:

Participants in the meeting are the delegates who attended the annual meeting of employees previously.

4. The responsibilities of the parties to attend the meeting of employees

4.1. Responsibilities of Director

a. Before the meeting:

- Preside over the formulation of plan to hold meeting of employees at the company, consistent with Union Executive Committee of company on the form of the meeting, number of delegates allocated to the units, make decision to convene the meeting.

- Prepare the reports on the implementation of the plan of the preceding year, the oriented task of manufacturing, business of the following year and other relevant reports.

- Preside over and coordinate with Trade union of company to prepare a new draft or draft of amendment and supplement of collective labor agreement; the draft of internal rules, regulations and other documents to consult at the meeting for employees at level of departments, workshops.

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b. During the meeting:

Implement the internal rules provided for in item II, point 2.2, clause 2, section a of this Circular.

c. After the meeting:

- Director is responsible for directing the departments, workshops, production teams to plan, implement the Resolution of the meeting of employees; studying to amend and supplement the provisions of the company to suite the passed contents at the meeting of employees of the company.

- Implement the Resolution of the meeting of employees and the collective labor agreement signed between the Director and representative of Union Executive Committee of the company.

- Every six months, along with the Union Executive Committee review the implementation of Resolution of the meeting of employees, collective labor agreement, results of the competition movement and notify the employees in company.

4.2. Responsibilities of the Union Executive Committees of companies

a. Before the meeting:

- Coordinate with the Director of the company to set up plan of organizing the meeting of employees of the company.

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- Monitor the implementation of the employee meetings at the departments, workshops, production teams, gather recommendations of the employees.

- Conduct negotiations of the contents of new draft or draft of amendment, supplement of the collective labor agreement (as defined by law.

- Participate in compiling new draft or draft of amendment, supplement of the contents and regulations of the company.

b. During the meeting:

Implement the contents provided for in Item II, clause 2, point 2.2, section b of this Circular.

c. After the meeting:

- Report the results of the organization and operation of the meeting of employees to superior Trade union.

- Coordinate with the Director to direct and implement the Resolution of the meeting of employees and collective labor agreement.

- Participate with the Director in the implementation of amendment and supplement of the provisions of the company in accordance with collective labor agreement, internal rules, and regulations passed by the meeting of employees.

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- Every six months, along with company director review the implementation of Resolution of the meeting of employees and collective labor agreement, results of the competition movement and notify the employees in company.

4.3. Responsibility of delegates attending the company meeting of employees

a. Discuss and comment directly issues that director or Trade union of company present: the solutions to implement the targets, plans of production, business set up; the initiatives and measures to improve labor productivity, product quality, lower cost, save raw materials, of labor safety, labor hygiene, environmental protection, improve working conditions, arrange labor suitably; propose the measures to improve labor relations in the company, improve the material and morale life for employees.

b. Discuss contents of new draft of collective labor agreement or the draft of amendment and supplement of the collective labor agreement for representative of the Union Executive Committee and Director of the company to sign (if it guarantees to comply with current provisions of law).

c. Discuss and vote on the recommendations to the General Meeting of Shareholders, the Management Board, the Members’ Council of the company on matters beyond the competence of the Director; vote for passing the Resolution of the meeting of employees of the company.

d. Communicate the results of the meeting of employees of the company to those who do not attend the meeting.

5. Funds for organizing the meeting of employees

Enterprise ensures funding for organizing the meeting of employees of company and the meeting of employees at the departments, workshops, production teams.

IV. IMPLEMENTATION PROVISIONS

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2. Management Board, Members’ Council, Director of the company shall coordinate with the Union Executive Committee of the company to implement ​​this Circular.

3. Labor Confederation of provinces and cities coordinate with the Department of Labour - Invalids and Social Affairs; the Central Branch Trade Union, Trade Unions of Corporations under the General Confederation coordinate with functional agencies to implement this Joint Circular and report the results to the General Confederation of Labour of Vietnam and Ministry of Labour - Invalids and Social Affairs.

4. General Confederation of Labour of Vietnam shall coordinate with the Ministry of Labour - Invalids and Social Affairs to annually inspect and assess the organization of the meeting of employees in the stock companies, limited liability companies to timely solve problems of the establishment./. 

FOR PRESIDIUM OF VIETNAM GENERAL CONFEDERATION OF LABOR




Dang Ngoc Tung

MINISTER OF LABOR – INVALIDS AND SOCIAL AFFAIRS




Nguyen Thi Kim Ngan