JURISDICTION AND PROCEDURE IN RESOLVING LABOR DISPUTES
Topic 39:
JURISDICTION AND PROCEDURE IN RESOLVING LABOR DISPUTES
Senior Lecturer, Dr. Nguyễn Thị Bích
SUMMARY OF CASE AND COURT DECISION
(Case number 01/2023/LĐ-ST dated May 25, 2023, issued by Bạc Liêu City People’s Court, Bạc Liêu Province.)
Summary of Case:
On November 8, 2020, Ms. Đỗ Thị Kiều and TT Telecommunications Service Joint Stock Company (abbreviated as TT Company) entered into a definite-term labor contract numbered 201101/HĐLĐ-CN BẠC LIÊU with a 36-month term, effective from November 8, 2020, to November 7, 2023. The agreed monthly salary was 3,675,000 VND.
On June 14, 2022, due to TT Company’s violation of salary payment obligations and her circumstances of caring for a young child, Ms. Đỗ Thị Kiều requested unpaid leave. On June 28, 2022, TT Company issued Decision 077/2022/QĐ-VTTV, terminating the labor contract with Ms. Kiều.
To date, TT Company still owes Ms. Kiều wages from May 1, 2021, to June 14, 2022. Based on her actual monthly salary of 5,709,644 VND, she demands TT Company pay her 8,344,864 VND (5,709,644 VND × 1.5 months’ wages) and late payment interest at the rate of 10% per year, calculated from June 15, 2022.
Furthermore, following TT Company’s decision to terminate the labor contract on June 28, 2022, TT Company delayed completing social insurance procedures for Ms. Kiều until November 30, 2022, exceeding the allowed 3-month period. Consequently, Ms. Kiều could not submit her unemployment insurance application. She requests the court to order TT Company to compensate her unemployment insurance benefits amounting to 11,025,000 VND.
Court Decision:
The court recognizes the dispute between TT Company and Ms. Kiều as involving unemployment insurance and wages under their labor contract. According to the law, labor dispute resolution procedures must include labor conciliation before initiating litigation in court.
COMMENTARY
I. Introduction
In labor relations, disputes are a frequent phenomenon. Labor disputes concern the rights, obligations, and benefits arising between parties within the framework of labor relations. Labor disputes include:
(i) Individual labor disputes between employees and employers;
(ii) Collective labor disputes between employee groups and employers [Clause 1, Article 179 of the 2019 Labor Code].
Among these, individual labor disputes are the most common and are on the rise.
Currently, regulations governing jurisdiction and procedures for resolving individual labor disputes in Vietnam have been relatively improved, providing legal frameworks for subjects involved in labor disputes and partially addressing practical demands.
Accordingly, jurisdiction for resolving individual labor disputes belongs to labor conciliators, labor arbitration councils, and people’s courts [Article 187 of the 2019 Labor Code].
The procedure for resolving individual labor disputes typically involves the following steps:
- Conciliation through a labor conciliator for disputes requiring conciliation [Clause 1, Article 188 of the 2019 Labor Code];
- Filing a lawsuit with a labor arbitration council or petitioning the court for resolution when:
– Either party fails to comply with agreements outlined in the conciliation record of the labor conciliator;
– The conciliation period expires as prescribed without conciliation conducted;
– Conciliation fails;
– The dispute does not require mandatory conciliation by a labor conciliator.
Through the aforementioned case, the author will analyze and comment to identify the competent body responsible for receiving and resolving the labor dispute between TT Company and Ms. Kiều. The resolution procedures will be examined to determine their compliance with legal regulations.
II. Legal Issues
- Resolution of individual labor disputes through labor conciliators
According to Clause 1, Article 188 of the 2019 Labor Code and Clause 1, Article 32 of the 2015 Code of Civil Procedure, individual labor disputes must undergo conciliation procedures by labor conciliators before requesting resolution by the court, except for disputes exempted from mandatory conciliation procedures, including:
- a) Disciplinary measures in the form of dismissal or cases of unilateral termination of the labor contract;
- b) Compensation for damages and severance allowances upon labor contract termination;
- c) Disputes between domestic workers and their employers;
- d) Disputes regarding social insurance, health insurance, unemployment insurance, labor accident insurance, and occupational disease insurance as prescribed by relevant laws;
đ) Disputes concerning damages between employees and organizations or enterprises sending employees to work abroad under contracts;
- e) Disputes between leased employees and their leasing employers.
Labor dispute conciliation is a method of resolving labor disputes between parties in labor relations through negotiation assisted by a third party, the labor conciliator. In cases where conciliation succeeds but parties fail to execute or properly execute agreements, or when conciliation fails, or labor conciliators do not conduct conciliation within the legally prescribed timeframe, disputing parties are entitled to request resolution by the labor arbitration council or the court [Clauses 6, 7, Article 188 of the 2019 Labor Code].
The dispute in this case involves unemployment insurance and wages between Ms. Đỗ Thị Kiều and TT Company. It falls under disputes requiring conciliation procedures by labor conciliators before seeking resolution by the labor arbitration council or the court, as stipulated by the 2019 Labor Code and the 2015 Code of Civil Procedure.
In this case, on August 25, 2022, Bạc Liêu City Department of Labor, Invalids, and Social Affairs received and conducted conciliation procedures for the labor dispute between Ms. Đỗ Thị Kiều and TT Company.
Based on the conciliation record dated August 25, 2022, Ms. Đỗ Thị Kiều fulfilled pre-litigation requirements to initiate legal proceedings before Bạc Liêu City People’s Court for resolution of the dispute with TT Company, adhering to proper procedures and regulations regarding individual labor dispute resolution.
- Resolution of Individual Labor Disputes through Litigation at the People’s Court
- The Right to File a Lawsuit
Article 186 of the 2015 Code of Civil Procedure stipulates: “Agencies, organizations, and individuals have the right to file lawsuits on their own or through their lawful representatives (hereinafter referred to as plaintiffs) at a competent court to request protection of their legitimate rights and interests.”
In this case, the plaintiff is Ms. Đỗ Thị Kiều, who is identified as the claimant. According to Clause 2, Article 68 of the 2015 Code of Civil Procedure: “A plaintiff in a civil case is the person who initiates the lawsuit or the person authorized by other agencies, organizations, or individuals as prescribed by this Code to file a lawsuit to request the court to resolve the civil case when the plaintiff believes their legitimate rights and interests are infringed upon.”
To establish the status of a plaintiff, two conditions must be met:
(i) The person is presumed to have rights and interests that are infringed upon;
(ii) The person initiates the lawsuit independently, provided they possess full civil procedural capacity or have someone initiate the lawsuit on their behalf.
Ms. Đỗ Thị Kiều was an employee of TT Company under a definite-term labor contract signed on November 8, 2020. Believing that TT Company’s decision to terminate the labor contract without fulfilling obligations such as wage payment and completing social insurance procedures adversely affected her rights, Ms. Kiều filed a lawsuit requesting the court’s resolution.
Therefore, there are grounds to presume that Ms. Kiều’s legitimate rights and interests were infringed. Additionally, at the time of initiating the lawsuit, Ms. Kiều had full civil procedural capacity, enabling her to independently file the lawsuit to protect her legitimate rights and interests under the law. Hence, it is affirmed that in this case, Ms. Kiều has the right to file the lawsuit.
- Statute of Limitations for Filing a Lawsuit
The statute of limitations for requesting the court’s resolution of individual labor disputes is one year from the date the disputing party becomes aware of the act they believe infringed upon their legitimate rights and interests [Clause 3, Article 190 of the 2019 Labor Code].
Based on the statements of the disputing parties in this case, it is evident that on June 28, 2022, TT Company issued a decision to terminate the labor contract with Ms. Kiều. However, upon termination of the labor relationship, TT Company failed to fulfill its responsibilities regarding Ms. Kiều’s rights. Specifically, the company owed wages for the period from May 1, 2022, to June 14, 2022, and delayed completing social insurance procedures, preventing Ms. Kiều from applying for unemployment insurance benefits due to the missed application deadline.
As of the date of filing the lawsuit, the case remains within the one-year statute of limitations. Therefore, this case is recommended for adjudication by the People’s Court, as it is still within the valid statute of limitations.
- Court Jurisdiction
The civil jurisdiction of courts involves the authority to resolve cases and issue decisions during the adjudication process under the court’s civil procedural rules. Generally, the civil jurisdiction of courts is determined by three factors:
– Jurisdiction by type of case;
– Jurisdiction by level of the court;
– Jurisdiction by territorial location.
c.1. Jurisdiction by Type of Case
Under Clause 1, Article 32 of the 2015 Code of Civil Procedure, as amended by Point a, Clause 2, Article 219 of the 2019 Labor Code, the following types of labor disputes fall under the jurisdiction of the court:
- Individual labor disputes between employees and employers that must undergo labor conciliator procedures, where conciliation:
– Results in agreements that are not executed or improperly executed,
– Fails,
– Or is not conducted within the statutory timeframe.
Exceptions to mandatory conciliation include disputes regarding:
- a) Disciplinary measures in the form of dismissal or unilateral termination of the labor contract;
- b) Compensation for damages or severance allowances upon labor contract termination;
- c) Disputes between domestic workers and employers;
- d) Social insurance, health insurance, unemployment insurance, labor accident insurance, and occupational disease insurance under relevant laws;
đ) Compensation between employees and organizations or enterprises sending employees to work abroad under contracts;
- e) Disputes between leased employees and their leasing employers.
Ms. Đỗ Thị Kiều filed a lawsuit against TT Company based on their established labor relationship. At the time of contract termination, TT Company had not fulfilled its obligations to pay wages or complete social insurance procedures within the legally prescribed time. Consequently, Ms. Kiều demanded unpaid wages, interest on delayed payment, and compensation for the late finalization of social insurance documents. This labor relationship involves a dispute over wages and unemployment insurance benefits. Such disputes require conciliation at Bạc Liêu City’s Department of Labor, Invalids, and Social Affairs; since conciliation failed, this labor dispute falls under the court’s jurisdiction.
c.2. Jurisdiction by Level of the Court
Point c, Clause 1, Article 35 of the 2015 Code of Civil Procedure specifies that people’s courts at the district level are responsible for resolving individual labor disputes under first-instance procedures. In this case, the People’s Court of Bạc Liêu City is the competent court.
c.3. Jurisdiction by Territorial Location
As a general rule, courts resolving civil cases, including labor disputes, are the courts located where the defendant’s headquarters are situated (if the defendant is an organization) or where the defendant resides or works (if the defendant is an individual) [Point a, Article 39 of the 2015 Code of Civil Procedure].
However, if the plaintiff is an employee, they have the option to choose the court where they reside or work to resolve disputes involving compensation, severance allowances, social insurance, health insurance, unemployment insurance, employment-related rights and interests, wages, income, and labor conditions [Point d, Clause 1, Article 40 of the 2015 Code of Civil Procedure]. Additionally, parties may agree in writing to have the case resolved at the court of the plaintiff’s residence, work location, or headquarters [Point b, Clause 1, Article 39 of the 2015 Code of Civil Procedure].
In this case, TT Company has a branch office located at address B, street N, Ward 1, Bạc Liêu City, Bạc Liêu Province. Hence, the defendant is a legal entity headquartered in Bạc Liêu City, Bạc Liêu Province.
Considering the above, based on Point d, Clause 1, Article 32; Point c, Clause 1, Article 35; and Point b, Clause 1, Article 40 of the 2015 Code of Civil Procedure, this case falls under the jurisdiction of the People’s Court of Bạc Liêu City, Bạc Liêu Province.
III. Conclusion
In cases of individual labor disputes, each disputing party has the right to request resolution by the competent authority, specifically labor conciliators, labor arbitration councils, and people’s courts. Resolving labor disputes, including individual labor disputes, must strictly adhere to legal regulations regarding jurisdiction and procedures. This ensures the protection of the legitimate rights and interests of the disputing parties.
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