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Legal Update

New Law Allowing Employees To Voice Views And To Make Decisions On Certain Issues Of Joint-Stock And Limited Liability Companies

17 October 2007
Mayer Brown Legal Update


On 28 May 2007, the Government issued Decree No. 87/2007/ND-CP promulgating a regulation on joint-stock companies and limited liability companies ("Decree 87"). Decree 87 applies to company managers, trade union committees and employees of joint-stock and liability limited companies. One of the aims of the new Decree is to enhance responsibility of company managers to employees, to establish a harmonious and stable relationship between employees and employers, and to help prevent and limit conflicts in production and business.

Full Update

Decree 87 provides information that company managers must disclose to employees, such as: regimes and policies directly related to employees, annual tasks and planned targets of the company, the company's internal rules and regulations, the setting up and use of the company's funds and reserves, etc.

Moreover, Decree 87 allows employees to comment and make decisions on certain issues as well as stating how such comments and decisions are to be given. Therefore, issues to be commented on by employees are included: drafting of the collective labour agreement or amendments or supplements thereto; labour rules; rules relating to, and solutions to raising, labour productivity and product quality; reducing prices; ensuring labour safety; and labour sanitation and environmental protection, etc. Employees can comment or make decisions through conferences or meetings of employees or dialogue between the company's management and employees, or through trade unions, mailboxes, etc.

Decree 87 details regulations regarding the rights and obligations of employees under the Labour Code. These regulations permit employees to exercise their rights in problems directly concerning their interests.

Decree 87 became valid on 8 July 2007.

For further information, please contact:

Phone: +844 822 8860
Fax: +844 822 8864

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