VI In 2026, enterprises experiencing difficulties in their production and business operations may be considered for a suspension of trade union fee payments if they satisfy the conditions prescribed by law. What are the applicable eligibility requirements, the maximum suspension period, the competent authorities, and the procedures involved? Let’s explore these issues with Pham Consult!
1. Trade Union Fees and Key Considerations
Not every enterprise experiencing financial difficulties is eligible to suspend trade union fee payments. To be considered for this policy, enterprises, cooperatives, and cooperative unions must fall within the cases specified in Clause 1, Article 13 of Decree No. 105/2026/ND-CP and satisfy one of the following conditions:
(1) Eligibility Requirements for Suspension of Trade Union Fee Payments
Enterprises, cooperatives, and cooperative unions falling within one of the cases specified in Clause 1 of this Article and satisfying one of the following conditions may be considered for suspension of trade union fee payments:
- They must suspend production or business operations for at least 30 days and be unable to arrange work for their employees, in which at least 50% of the total number of employees present before the suspension of production or business operations who are subject to compulsory social insurance must temporarily cease working and apply for suspension of compulsory social insurance contributions to the retirement and survivorship fund;
- They suffer damage exceeding 50% of the total value of their assets due to natural disasters, fires, epidemics, or crop failures (excluding the value of land).
(2) Duration of Suspension of Trade Union Fee Payments
In addition to the eligibility requirements, enterprises should pay attention to the permitted suspension period and their obligation to resume payments upon its expiry. Specifically:
- The suspension of trade union fee payments shall be calculated on a monthly basis and shall not exceed 12 months.
- Upon expiry of the suspension period specified at Point a of this Clause, enterprises, cooperatives, and cooperative unions shall resume paying trade union fees at the rate prescribed at Point b, Clause 1, Article 29 of the Law on Trade Unions (except where they are eligible for a reduction in trade union fee contributions under Article 12 of this Decree).
(3) Competent Authorities and Procedures for Considering Suspension of Trade Union Fee Payments
To suspend trade union fee payments, enterprises must not only satisfy the prescribed conditions but also submit an application and obtain approval from the competent authority. The relevant authority, application dossier, and procedures are set out below:
- The authority and procedures for determining the number of employees subject to compulsory social insurance who temporarily cease working and apply for suspension of compulsory social insurance contributions to the retirement and survivorship fund, as well as the value of damaged assets specified in Clause 2 of this Article, shall comply with Article 10 of Decree No. 158/2025/ND-CP dated June 25, 2025, of the Government, detailing and guiding the implementation of certain provisions of the Law on Social Insurance regarding compulsory social insurance.
Where enterprises, cooperatives, and cooperative unions already have a list of employees as of the time before the suspension of production or business operations and a list, prepared at the time of application, of employees subject to compulsory social insurance who must temporarily cease working in order to apply for suspension of contributions to the retirement and survivorship fund, or a document issued by a competent authority determining the value of damaged assets, such lists or documents may be used to carry out the procedures for suspending trade union fee payments.
- Authority and procedures for considering suspension of trade union fee payments
The authority to consider applications for suspension of trade union fee payments rests with the Vietnam General Confederation of Labour or the provincial-level Confederation of Labour, in accordance with the delegation of authority established by the Vietnam General Confederation of Labour.
Enterprises, cooperatives, and cooperative unions shall submit one (01) application dossier comprising a written request for suspension of trade union fee payments (using the form provided in Appendix II issued together with this Decree), accompanied by a report on the employment situation and a list of employees subject to compulsory social insurance who temporarily cease working and apply for suspension of compulsory social insurance contributions, accounting for at least 50% of the total number of employees present before the suspension of production or business operations; or a report demonstrating damage exceeding 50% of the total value of assets caused by natural disasters, fires, epidemics, or crop failures (excluding the value of land). The dossier shall be submitted to the Vietnam General Confederation of Labour or the provincial-level Confederation of Labour.
Depending on actual circumstances, the Vietnam General Confederation of Labour shall prescribe the specific methods of submission, including in-person submission, online submission, or submission by postal service.
Within 15 working days from the date of receipt of the written request from the enterprise, cooperative, or cooperative union, together with the aforementioned supporting documents, the Vietnam General Confederation of Labour or the provincial-level Confederation of Labour shall consider the application and respond in writing, taking into account the balancing capacity of trade union finances (excluding state budget support), provided that the enterprise, cooperative, or cooperative union satisfies the conditions specified in Clauses 1, 2, and 3 of this Article. If the request is rejected, the reasons must be clearly stated.
Where an enterprise, cooperative, or cooperative union is approved to suspend trade union fee payments, the suspension shall take effect from the month in which the written request is submitted to the Vietnam General Confederation of Labour or the provincial-level Confederation of Labour.
2. What Are the Penalties for Late Payment of Trade Union Fees from September 10, 2026?
In addition to the suspension policy applicable in certain special circumstances, enterprises must ensure that trade union fees are paid on time. Late payment, failure to pay, or insufficient payment may result in administrative penalties, depending on the nature of the violation and the amount payable.
Pursuant to Clause 1, Article 42 of Decree No. 283/2026/ND-CP, the following provisions apply:
Violations of Regulations on Payment, Management, and Use of Trade Union Fees
1. A fine ranging from 12% to less than 15% of the total amount of trade union fees payable at the time the administrative violation record is drawn up, subject to a maximum of VND 75,000,000, shall be imposed on employers committing any of the following violations:
a) Late payment of trade union fees;
b) Failure to deduct and pay trade union fees;
c) Failure to pay, or incomplete payment of, the amount payable at the prescribed rate within 60 days from the expiry of the statutory payment deadline;
d) Failure to pay, or incomplete payment in respect of, all persons subject to the payment obligation within 60 days from the expiry of the statutory payment deadline.
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Pursuant to Article 7 of Decree No. 283/2026/ND-CP, the following provisions apply:
Fines and Principles for Applying Penalties to Repeated Administrative Violations
1. The fines prescribed for administrative violations under Chapters II, III, and IV of this Decree are applicable to individuals, except for the cases specified in: Article 8; Article 9; Clause 3, Article 10; Clauses 3, 4, 5, and 6, Article 19; Clauses 2 and 4, Article 36; Clause 1, Article 37; Clauses 1, 5, 6, 7, and 8, Article 38; Clause 3, Article 42; Clauses 6 and 11, Article 48; Article 49; Clauses 1, 2, 3, 4, 5, 6, 7, and 8, Article 50; Clauses 1, 2, 3, 4, 5, and 6, Article 52; and Clause 4, Article 53 of this Decree, for which the prescribed fines apply to organizations. The fine imposed on an organization shall be twice the fine imposed on an individual.
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Accordingly, an employer that makes late payment of trade union fees may be subject to a fine ranging from 12% to less than 15% of the total amount of trade union fees payable at the time the administrative violation record is drawn up, subject to a maximum of VND 75,000,000.
Note: The above fine applies to individual violators. Where an organization commits the same violation, the fine shall be twice the amount applicable to an individual.
