Mandatory Mediation Procedure Before Filing a Labor Dispute Lawsuit in Vietnam

In Vietnam, when an employment dispute arises between an employee and an employer, is mediation required before filing a lawsuit? What does the mediation process look like in Vietnam, and what should parties keep in mind to protect their legal rights? This article provides a detailed explanation of the mandatory mediation procedure for labor disputes in Vietnam and practical guidance from professional legal service experience.

1. Why Must Mediation Be Conducted Before Filing a Labor Dispute Lawsuit in Vietnam?

When labor disputes occur in Vietnam — such as disagreements over salary, working conditions, or contract termination — understanding the mandatory mediation procedure is a critical first step that cannot be skipped.

1.1. Legal Basis and Purpose of Mediation

Under Article 188 of the 2019 Labor Code (LLC 2019), “individual labor disputes must be resolved through mediation conducted by a labor mediator before being submitted to a Labor Arbitration Council or a Court,” except for certain exempted cases.

This principle reflects Vietnam’s legal policy of encouraging negotiation and mediation to settle labor disputes, aiming to minimize cost, time, and risk for both employees and employers.

Mediation before litigation helps maintain labor relations, protect corporate reputation, and safeguard employees’ rights in the workplace in Vietnam.

1.2. When Is Mediation Mandatory and When Is It Exempt?

Mediation is mandatory for individual labor disputes, except for specific cases outlined in Clause 1, Article 188 of the LLC 2019, including:

  • Disputes over disciplinary dismissal or unilateral termination of employment contracts.

  • Disputes over compensation or severance pay upon termination.

  • Disputes involving domestic workers and their employers; disputes over social insurance, health insurance, unemployment insurance; or between leased employees and the subleasing employer.

Therefore, for labor disputes in Vietnam that do not fall under these exemptions, mediation is a compulsory step before filing a lawsuit.

2. The Mandatory Mediation Procedure Before Filing a Labor Lawsuit in Vietnam

After understanding the necessity and scope of mediation, let’s explore the specific procedure for conducting mediation before filing a lawsuit in Vietnam.

2.1. Preparation and Request for Mediation

Either the employee or the employer must submit a written request for mediation to a labor mediator or competent authority. According to current regulations, the statute of limitations for requesting mediation is six months from the date the violation of lawful rights and interests is discovered.

The labor mediator must receive the request and organize a mediation session within five working days from the date of receipt.

Both parties should prepare supporting documents such as employment contracts, collective agreements, work records, payroll slips, termination decisions, etc., to substantiate their claims and defenses.

2.2. Mediation Session and Minutes of Results

During the mediation session, the mediator summons the employee and employer or their authorized representatives.

  • If both parties reach an agreement: a Minutes of Successful Mediation is drafted, signed by both parties and the mediator, and copies are provided to each side.

  • If the parties fail to reach an agreement or one party is absent without a valid reason: a Minutes of Unsuccessful Mediation is prepared.

At the conclusion of the mediation session:

  • If mediation succeeds, the outcome becomes effective.

  • If mediation fails, either party may proceed to file a lawsuit in Court or request the Labor Arbitration Council (in the case of collective disputes).

2.3. Filing a Lawsuit After Unsuccessful Mediation in Vietnam

If mediation fails or the mediator fails to conduct the session within the prescribed time limit, the disputing party may:

  • Request the Labor Arbitration Council to settle the dispute (for collective disputes or where agreed by both parties), or

  • File a lawsuit at the People’s Court where the employer is headquartered or where the employee last worked.

The statute of limitations for filing a lawsuit is one year from the date of discovering the violation.
Therefore, in Vietnam, it is crucial to comply with the correct procedures and deadlines to avoid forfeiting your legal rights.

3. Key Notes and Practical Tips for Successful Mediation in Vietnam

To ensure an effective and favorable mediation process in Vietnam, both employers and employees should take note of the following:

3.1. Prepare Carefully and Act in Time

  • Once a violation is identified, record the event, date, and gather evidence (employment contract, payroll, emails, messages) since the mediation period is limited to six months.

  • Submit the mediation request to the authorized mediator or competent authority with clear and complete documentation.

  • Involve a union representative (if applicable) or a trusted representative to increase the chances of reaching an agreement.

3.2. Use Mediation to Preserve Relationships and Save Costs

Mediation before litigation in Vietnam offers several advantages — preserving corporate reputation, reducing legal expenses, and saving time. When mediation succeeds, enforcement is simpler, and employment relationships are less disrupted.

During mediation, both sides should remain open, cooperative, and flexible in exploring potential settlement options.

3.3. When to Proceed to Court and How to Optimize the Process

  • If mediation fails or the mediator does not act within the deadline, filing a lawsuit immediately is advisable to protect your rights.

  • Having an official Minutes of Mediation (successful or unsuccessful) is crucial proof that the mandatory procedure has been completed.

  • Employers should seek advice from lawyers specializing in labor law to assess risks, jurisdiction, and prepare the necessary documentation.

  • Employees should also understand their rights — particularly in cases of wrongful dismissal or unlawful unilateral termination (which are exempt from mediation) — to choose the most appropriate course of action.

4. Conclusion

Mandatory mediation before initiating a labor dispute lawsuit in Vietnam is not merely a legal requirement but also an opportunity for both sides to find common ground, avoid prolonged confrontation, and reduce court involvement. This process embodies the humanistic spirit of Vietnam’s labor law — encouraging dialogue, protecting legitimate rights, and promoting stable and harmonious labor relations.

However, in practice, many employers and employees face challenges in identifying when mediation is required, how to proceed, and what to do when mediation fails. Therefore, seeking professional legal consultation is essential to ensure procedural compliance and protect your rights to the fullest extent.

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