In today's era, human resources play an extremely important role in the development of any business. To attract and retain talents, businesses need to build a civilized working environment, ensuring the rights of employees. Labor agreements are an effective tool to help businesses do this, contributing to creating a foundation for sustainable development.

What is a labor agreement?

A labor agreement is a written agreement signed between an employer and an employee collective or their legal representative on working, living and working conditions. A labor agreement is specified in the Labor Code 2019, which is an important legal document, contributing to protecting the interests of employees, creating a civilized working environmentand promoting the common development of both businesses and employees.

The role and importance of labor agreements

Labor agreements play an important role in:

1. Protection of workers' rights

The labor agreement specifies working conditions, salary payment regime, social insurance regime, health insurance, working time, rest, holidays, labor discipline, etc. to ensure the legitimate rights and interests of employees.

2. Create a civilized working environment

Labor agreements contribute to building a cultural, safe and hygienic working environment, creating conditions for employees to promote their capacity and dedicate themselves to the enterprise.

3. Contributing to the sustainable development of businesses

When employees are guaranteed benefits and have a good working environment, they will be motivated to work more effectively, contributing to improving labor productivity and business efficiency.

Benefits of applying an effective labor agreement

1. Improve the operational efficiency of the enterprise

Effective labor agreements help businesses achieve many benefits such as:

• Minimizing labor disputes: When the rights and obligations of employees are clearly stipulated in the Labor Agreement, labor disputes will be minimized, creating a stable working environment, helping businesses focus on production and business activities.
• Improve labor productivity: Employees who have a good working environment and are guaranteed benefits will be assured to work, thereby improving labor productivity.
• Attracting and retaining talents: Businesses with good remuneration policies for employees will attract high-quality human resources and retain talents for a long time.
• Improve the image and reputation of the enterprise: Enterprises that apply TULĐ effectively will create an image as a reputable and responsible enterprise for employees, thereby improving its reputation in the market.

2. Strengthen the cohesion between employees and enterprises

Effective labor agreements help strengthen the bond between employees and businesses through:

• Build a relationship of trust: When the rights and obligations of the two parties are clearly and transparently defined, the two parties will trust each other more.
• Promoting cooperation: The two sides work together to well implement the contents of the TULD, thereby improving the efficiency of joint operations.
• Strengthen community cohesion: Businesses that care about the lives of employees will build a cohesive relationship with the community, thereby creating favorable conditions for production and business activities.

3. Minimize labor disputes

Effective labor agreements help reduce labor disputes through:

• Clear regulations on the rights and obligations of the two parties: When the rights and obligations of the two parties are clearly and transparently defined, the two parties will limit violations, thereby minimizing disputes.
• Have a reasonable dispute resolution mechanism: The labor agreement specifies the labor dispute settlement mechanism, helping the two parties resolve disputes quickly and effectively.
• Improve the awareness of law compliance: Enterprises and employees have a sense of law compliance and well implement the contents of the TULD, thereby minimizing disputes.

4. Improve the image and reputation of the business

Enterprises applying effective labor agreements will create an image as a reputable and responsible enterprise for employees, thereby improving their reputation in the market.

Difference Between Labor Agreement and employ contract

Labor agreements and employ contract are two legal documents related to labor relations, but there are some key differences:

1. Concept

• Labor agreements: It is a document stipulating an agreement between the employee collective and the employer on working, living and working conditions.
• employ contract : It is a written agreement between the employee and the employer on working conditions, salary, remuneration regime and other rights and obligations of the two parties.

2. Participants

• Labor agreements: Agreed upon by the collective of employees and the employer.
• employ contract : Agreed upon by the individual employee and the employer.

3. Scope of adjustment

• Labor agreements: General adjustment of working conditions, living and working conditions for the collective of employees in the enterprise.
• employ contract : Specific adjustments to working conditions, salaries, remuneration regimes and rights and obligations of individual employees.

4. Legal basis

• Labor agreements: Based on the Labor Code 2019 and relevant legal documents.
• employ contract : Based on the Labor Code 2019 and labor contracts.

5. Development and application process

• Labor agreements

  • The proposer and the party participating in the construction of the Labor agreements.
  • The content of discussion and agreement.
  • Signing and announcing the Labor agreements.
  • Dissemination and education of Labor agreements content.
  • Supervise and implement the Labor agreements.

• Employ contract

  • The two parties agree on the contents of the employ contract .
  • Sign a employ contract .
  • Performing employ contract .
  • Settlement of employ contract  disputes (if any).

6. Legal effect

• Labor agreements: Mandatory legal effect for the signed employee collective and employer.
• employ contract : Mandatory legal effect for individual employees and employers who have signed.

Labor agreements is collective, regulating general working conditions for the collective of employees in the enterprise.

The employ contract is individual, specifically adjusting the working conditions for individual employees.

Conclusion

Labor agreement  is a document stipulating an agreement between an employee and an employer on working, living and working conditions. Labor agreements plays an important role in ensuring the interests of employees, creating a civilized working environment, contributing to the sustainable development of the enterprise. Enterprises need to develop and apply effective Labor agreements to achieve many benefits for themselves and employees.