Laws of Vietnam

DECREE No.58-CP OF MAY 31, 1997 ON THE WAGE PAYMENT AND SETTLEMENT OF OTHER INTERESTS FOR ON-STRIKE LABORERS

THE GOVERNMENT

Pursuant to the Law on Organization of the Government of September 30, 1992;

Pursuant to the Ordinance on the Procedures for Settlement of Labor Disputes of April 11, 1996;

DECREES:

Article 1.- The payment of wages and settlement of other interests of employees for the days they are on strike shall have to be based on the Court’s decision that whether such strike is lawful or unlawful and the fault of each side in the observance of provisions of labor legislation.

Article 2.- If the court decides that the strike is lawful under Point a, Clause 1, Article 102 of the Ordinance on the Procedures for Settlement of Labor Disputes, the wages and other interests of employees taking part in the strike shall be settled as follows:

1. If the employer is at fault, the employees taking part in the strike shall be paid by the employer the full wages for the non-work days according to the preceding month’s wage level and such pay shall correspond to various forms of time wages.

The employer shall have to settle other interests of the employees in accordance with the provisions of labor legislation and satisfy all legitimate demands of the labor collective as stated in the written request.

2. If the employer is not at fault because he/she has strictly observed the provisions of labor legislation and the collective labor agreement, while the labor collective demands are not defined by law or the collective labor agreement, the pay for the days the employees are on strike shall be negotiated and agreed upon by the Executive Committee of the local Trade Union and the employer.

Other interests of the employees during the strike shall be settled by the employer in accordance with the labor legislation.

Article 3.- If the court decides that the strike is unlawful and compels the labor collective to end the strike under Point b, Clause 1, Article 102 of the Ordinance on the Procedures for Settlement of Labor Disputes, the wages and other interests of the employees shall be settled as follows:

1. If the employer is at fault in observing the provisions of labor legislation:

a) The strike violates one of the provisions in Points c and d, Clause 1, Article 80 of the Ordinance on the Procedures for Settlement of Labor Disputes, the wages paid by the employer for the non-work days when the employees are on strike shall be equal to 70% of the preceding month’s wages and calculated according to the various forms of time wages.

b) The strike violates one of the provisions in Points b, e and f, Clause 1, Article 80 of the Ordinance on the Procedures for Settlement of Labor Disputes, the wages paid by the employer for the non-work days when the employees take part in the strike shall be equal to 50 % of the preceding month’s wages and calculated according to the various forms of time wages.

During the period of the strike mentioned in Clause 1 of this Article the other interests of the employees shall be assured in accordance with the labor legislation.

2. If both the employer and the employees are at fault or not at fault in observing the provisions of labor legislation, and the strike violates one of the provisions in Points c and d, Clause 1, Article 80 of the Ordinance on the Procedures for Settlement of Labor Disputes, the wages paid to the employees for the days they are on strike shall be negotiated and agreed upon by the Executive Committee of the local Trade Union and the employer.

The other interests of the employees during the strike shall be assured in accordance with labor legislation.

The parties at fault shall have to take measures to overcome and correct their faults under the decisions of the court.

3. If the employer is not at fault and the strike violates one of the provisions in Points c and d, Clause 1, Article 80 of the Ordinance on the Procedures for Settlement of Labor Disputes and the employees are at fault in observing the provisions of labor legislation, the strikers shall not be paid for their non-work days during the strike.

Other interests of the employees during the strike shall be assured by the employer in accordance with the labor legislation.

4. If the employer is not at fault and the strike violates one of the provisions in Points a, b, e and f, Clause 1, Article 80 of the Ordinance on the Procedures for Settlement of Labor Disputes, the strikers shall not be paid for their non-work days, except otherwise agreed upon by the two sides.

The other interests of the employees during the strike shall not be assured by the employer in accordance with provisions of labor legislation.

5. If both the employer and the employees are at fault in observing the provisions of labor legislation:

a) The strike violates the provisions of Points e, Clause 1, Article 80 of the Ordinance on the Procedures for Settlement of Labor Disputes, the strikers shall not be paid the wages for their non-work days.

The other interests of the employees during the strike shall not be assured by the employer in accordance with provisions of labor legislation.

b) The strike violates the decision of the Prime Minister on the deferment or cessation of the strike as prescribed in Point e, Clause 1, Article 80 of the Ordinance on the Procedures for Settlement of Labor Disputes, the strikers shall not be paid for their non-work days as from the date the Prime Minister issues such decision. The interests of the strikers during the strike shall not be assured by the employer in accordance with labor legislation.

Before the Prime Minister issues a decision on the cessation of the strike, the wages and other interests of strikers for their non-work days shall be settled under the court’s ruling on the lawfulness of the strike.

Article 4.- In cases where the strike violates the provisions in Points e and f, Clause 1, Article 80 of the Ordinance on the Procedures for Settlement of Labor Disputes, the strikers shall be sanctioned in accordance with Clause 5, Article 12 of Decree No.38-CP of June 25, 1996 of the Government on Administrative Sanctions against Violations of Labor Legislation.

Article 5.- The court’s decisions on the payment of wages and settlement of other interests for employees while they are on strike shall be executed in accordance with provisions of the Ordinance on Execution of Court Decisions.

Article 6.- This Decree takes effect 15 days after its signing.

Article 7.- The Ministers, the Heads of the ministerial-level agencies, the Heads of the agencies attached to the Government, the Presidents of the People’s Committees of the provinces and cities directly under the Central Government shall have to implement this Decree.

On behalf of the Government

The Prime Minister

VO VAN KIET