LEGAL ISSUES WHEN RESOLVING LABOR DISPUTES OVER SALARY
Labor disputes are disputes over rights, obligations and interests arising between parties in the process of establishing, implementing or terminating labor relations. Disputes between employees and employers are often related to salary issues. Understanding the methods for resolving such disputes is essential to safeguarding the rights of both parties and maintaining labor relations. In this article, TNTP will analyze the legal issues surrounding the resolution of labor disputes over salaries.
1. How is a labor dispute over salary defined?
Current labor law does not provide a specific definition of labor disputes over salaries, but only defines labor disputes in general. According to Article 179 of the 2019 Labor Code, labor disputes are disputes concerning rights, obligations, and benefits arising between parties during the establishment, performance, or termination of labor relations; disputes between labor representation organizations; or disputes arising from relationships directly related to labor relations.
Thus, labor disputes over salaries can be understood as disputes related to salary levels, payment timelines, or other salary-related payments, as well as disputes over employees’ entitlement to salaries and employers’ obligations to pay salaries.
2. Methods and jurisdiction for resolving labor disputes over salaries
Labor disputes over salaries may involve individual labor disputes or collective labor disputes. Accordingly, such disputes can be resolved through various methods and competent individuals or authorities, as follows:
a. Methods for resolving salary disputes
– Resolving disputes based on mutual agreement between the parties;
– Resolving disputes through mediation;
– Resolving disputes through the Labor Arbitration Council;
– Resolving disputes at the People’s Court.
b. Jurisdiction for resolving salary disputes
Under the provisions of Articles 187 and 191 of the 2019 Labor Code, individuals or authorities competent to resolve labor disputes over salaries include:
– Labor mediator;
– Labor Arbitration Council;
– People’s Court.
3. Procedures for resolving labor disputes over salaries
When a labor dispute arises, the first and crucial step is to accurately determine the type of dispute (individual labor dispute or collective labor dispute). Each type of dispute has its own procedures and resolution methods. Additionally, the parties need to determine their legal positions in the case and ensure compliance with relevant laws.
a. Resolution through negotiation
According to Article 180 of the 2019 Labor Code, the principle of resolving labor disputes is: “Respect the parties’ autonomy through negotiation throughout the process of labor dispute settlement”. Therefore, the negotiation method is often preferred by the parties to resolve the dispute before bringing the case to the Court or competent authorities. This is a time-saving, inexpensive and quick measure that is convenient for the parties.
b. Resolution through mediation
Under Article 188 of the 2019 Labor Code, individual labor disputes must be resolved through mediation procedures by labor mediators before requesting the Labor Arbitration Council or the Court to resolve.
When settling individual labor disputes, the parties in the labor relationship are not always required to go through the mediation procedure. Cases in which mediation is not required include:
– Disputes over dismissal for disciplinary reasons; unilateral termination of employment contracts;
– Disputes over damages and allowances upon termination of employment contracts;
– Disputes between a domestic worker and his/her employer;
– Disputes over social insurance in accordance with social insurance laws; disputes over health insurance in accordance with health insurance laws ; disputes over unemployment insurance in accordance with employment laws; disputes over insurance for occupational accidents and occupational disease in accordance with occupational safety and health laws;
– Disputes over damages between an employee and organization that dispatches the employee to work overseas under a contract;
– Disputes between the outsourced worker and the client enterprise.
c. Settlement through the Labor Arbitration Council
Under Articles 189.1, 193.1 and 197.1 of the 2019 Labor Code, the disputing parties have the right to simultaneously request the Arbitration Council to settle the dispute in case the mediation fails or the mediation time limit specified in Articles 188.2 and 188.7 has expired but the labor mediator fails to conduct mediation or one party fails to comply with the agreement recorded in the mediation minutes.
Thus, the disputing parties are only entitled to request the Arbitration Council to settle the dispute in the following cases:
– The mediation result was unsuccessful;
– Upon the expiration of the mediation period, the mediator fails to conduct mediation specified in Articles 188.2 and 188.7 of the Labor Code 2019;
– Cases of non-compulsory mediation;
– One of the parties fails to perform or improperly implements the agreement in the successful mediation record.
d. Initiating a lawsuit to request the Court to settle the dispute
Similar to the method of requesting the Arbitration Council to settle disputes, the parties may only request the Court to resolve salary-related labor disputes after completing the mediation process conducted by a labor mediator.
According to Article 32 of the 2015 Civil Procedure Code (amended and supplemented by Article 219.2.a of the 2019 Labor Code), which stipulates cases under the jurisdiction of the People’s Court. Accordingly, parties to a labor dispute over salary may initiate a lawsuit to request the Court to settle the dispute in the following cases:
– Labor disputes are not required to go through mediation procedures;
– The mediation is successful but the parties fail to implement or improperly implement the agreement in the conciliation record;
– Mediation failed;
– Upon the expiration of the conciliation period, the labor mediator fails to conduct conciliation;
– Upon the expiration of the prescribed time limit, the Labor Arbitration Council is not established or the Labor Arbitration Council does not issue a dispute settlement decision;
– One of the parties fails to enforce the decision of the Labor Arbitration Council.
Understanding the resolution of labor disputes over salaries not only protects the legitimate rights and interests of the parties in labor relations but also contributes to building a stable relationship between the parties. Hopefully, through the article “Legal issues when resolving labor disputes over salary”, TNTP will give readers an overview of the legal regulations for resolving labor disputes over salary.
Sincerely,
TNTP & Associates International Law Firm
+84903503285
