The labor relationship between employees and employers frequently has certain potential conflicts.   Unresolved conflicts have the potential to become conflicts, resulting in significant disputes.  Any labor dispute has an inherently capitalist or market influenced character. These disputes are complicated, and the resolution time can be long because most of the issues are tied to the rights and interests of the respective parties. When a labor dispute occurs, both sides always want to completely resolve the problem to stabilize production and business as well as maintain profits and livelihoods To ensure rights, in addition to clearly understanding these rights, obligations, and procedures in resolving labor disputes, the parties in contention also need to be mindful of the statute of limitations for requesting resolution. In labor disputes, the parties concerned need to be more proactive in the litigation process, with vigilance for stipulated time limits. If legal time limits are not adhered to, all disputes will no longer be granted the due process of law. A significant question then arises in connection to labor disputes how is the statute of limitations determined by law?

How is the statute of limitations for requesting resolution of labor disputes understood?

Labor disputes are disputes over rights, obligations, and interests that arise between parties during the process of establishing, implementing, and terminating labor relations. Disputes may also occur between employee representative organizations including disputes arising from relationships directly related to labor relations. Labor disputes are not simply conflicts over behavior related to the activities and functions of employees and employers, but are disputes related to the entire process of the labor relationship.

Collective labor dispute resolution occurs when individuals, organizations, and competent state agencies carry out procedures according to established laws with the purpose of resolving disputes arising between employees or collectives. This type of dispute resolution is generally between the employee and the employer having to do with exercising the rights, obligations, and interests of both parties in the labor relationship in order to restore the legitimate rights and interests that have been violated as well as to eliminate conflicts between employees. The consequence of such resolutions ensures workers and employers, maintain and strengthen their working relations, to ensure stability in the production process.

The statute of limitations for requesting resolution of a labor dispute is the time limit allowed by law to resolve the dispute.  At the end of that time limit, the employee, collective labor bodies, and employers in labor disputes forfeit their right to request competent individuals, agencies, and organizations to resolve their labor disputes.

Common types of labor disputes 

The statute of limitations for a labor dispute depends on the type of dispute, according to Article 179 of the 2019 Labor Code. This article within the Labor Code is divided into two types of disputes based on the scale or nature of the dispute, including:

– Individual labor dispute. This is a dispute between an employee and an employer, between an employee and a business or organization sending employees to work abroad under a contract, between a subcontracted employee and an employer. This is a very common type of dispute, and as the name suggests, this dispute is individual, personal, and not connected to an organized labor entity.  These disputes arise from a failure to properly implement mutually established transactional agreements, a change or termination of labor contracts, or a failure to comply with the provisions of established labor law and internal labor regulations within the domain of an individual labor agreement.

– Collective labor dispute.  A dispute over rights or interests between one or more organizations representing workers with employers or one or more organizations of employers.  The primary organization representing the labor collective is generally recognized as a trade union that participates as a party to the dispute, requiring the employer to meet the rights and interests set forth by the labor collective. Collective labor disputes are organized with representatives of the collective according to the provisions of established collective bargaining laws.

In some cases, individual labor disputes are transformed into collective labor disputes and vice versa.

Collective labor disputes are also divided into two types:

– Collective labor disputes over rights. A dispute between one or more employee representative organizations and the employer or one or more employer organizations arising in the following circumstances. There are differences in the understanding and implementation of regulations of collective labor agreements, internal labor rules, regulations, and other legal agreements. There are differences in understanding and implementing labor law provisions. Moreover, instances when the employer exhibits discriminatory behavior against employees or members of the leadership board of the employee representative organization for reasons of establishing, joining, or operating in the employee representative organization dynamic. Additionally, there are instances when interference and the manipulation of employee representative organizations occur. Finally, the possibility of a breach of duty in good faith negotiations can lead to a collective labor dispute.

– Collective labor dispute over benefits.  This is a type of dispute arising during the collective bargaining process. When one party refuses to negotiate or does not negotiate within the time limit prescribed by law. Normal negotiations are requests to establish new working conditions in accordance with the provisions of applicable labor laws, collective labor agreements, internal labor regulations, or other legal regulations, and agreements on labor matters associated with collective benefits granted by employers.

Which governing body has the authority to resolve labor disputes?

Depending on the type of labor dispute, whether it is individual or collective, the following entities have the authority to settle labor disputes. These entities include: the state management agency with jurisdiction to resolve disuptes the Labor Mediator, the Labor Arbitration Council, and the People’s Court.

– Authority to resolve individual labor disputes.  According to Article 187 of the Labor Code 2019, agencies, organizations, and individuals have the authority to resolve disputes. Individual labor disputes encompass the following entities: Labor conciliators, the Labor Arbitration Council, and the People’s Court.

– Authority to resolve collective labor disputes.  Article 191 and Article 195 of the 2019 Labor Code stipulate that the authority to resolve collective labor disputes concerning labor rights includes: a labor conciliator,  the Labor Arbitration Council Movement, and the People’s Court.  The authority to resolve labor disputes over interests is the exclusive domain of recognized labor conciliators and the Labor Arbitration Council because collective labor disputes taking precedence over interests are not resolved at the Court level.

Responsibilities of organizations and agencies in resolving labor disputes

In resolving labor disputes, according to the provisions of Article 181 of the 2019 Labor Code, agencies and organizations have the following responsibilities:

– State labor management agencies are responsible for coordinating with employee representative organizations and employer representative organizations to guide, support, and assist parties in resolving labor disputes.

– The Ministry of Labor, War Invalids, and Social Affairs (MOLISA) organizes training to improve the professional skills capacity of labor mediators and labor arbitrators in resolving labor disputes.

– When requested, the specialized labor agency under the People’s Committee is the focal point to receive requests to resolve labor disputes and is responsible for classifying, guiding, supporting, and assisting the parties in resolving labor disputes.

Within five working days, the agency receiving the request to resolve the labor dispute is responsible for transferring the request to the labor conciliator in cases where labor conciliation procedures are required. The request is subsequently forwarded to the Labor Union, in cases where the Arbitration Council is required to resolve the matter or is instructed to defer the matter to the Court for resolution.

The statute of limitations requires resolution of individual labor disputes

Individual labor disputes must be resolved through conciliation procedures by a labor conciliator before requesting resolution by the Labor Arbitration Council or Court, except in some cases where conciliation procedures are not required. This procedure is in accordance with the provisions of Clause 1, Article 188 of the 2019 Labor Code.  The statute of limitations for requesting resolution of individual labor disputes is regulated by Article 190 of the 2019 Labor Code:

– The statute of limitations for requiring a labor conciliator to arbitrate an individual labor dispute is six months from the date of acknowledgment of the breach in which the disputing party believes its legitimate rights and interests are violated.

– The statute of limitations for requesting the Labor Arbitration Council to resolve an individual labor dispute is nine months from the date of acknowledgment of the breach in which the disputing party believes its legitimate rights and interests are violated.

– The statute of limitations for requesting the Court to resolve an individual labor dispute is one year from the date of acknowledgment of the breach in which the disputing party believes its legitimate rights and interests are violated.

– In cases where the petitioner can effectively demonstrate force majeure events have influenced breaches in a contract, discernable obstacles have arisen, or other reasons as recognized by law, the request cannot be made within the time limit specified above. In such cases, the time of the unexpected event will factor into consideration. Such forces, objective obstacles, or additional related factors are not included in the statute of limitations for requesting resolution of individual labor disputes.

The statute of limitations requires resolution of collective labor disputes over rights

According to the provisions of Article 194 within the 2019 Labor Code, if an individual case meets the criteria for a breach in established labor laws, dispute resolution is required. Collective labor rights have the following statute of limitations:

– Through the conciliator.  The statute of limitations for requesting the labor conciliator to perform conciliation of collective labor disputes concerning a breach of rights is six months from the date of acknowledgment of the breach whereby the disputing party believes its legal rights have been violated.

– Through arbitration.  The statute of limitations for requesting the Labor Arbitration Council to resolve a collective labor dispute concerning a breach of rights is nine months from the date of acknowledgment of the act that the disputing party believes is in violation of the legitimate rights of the employee.

– Through resolution in court.  The statute of limitations for requesting the Court to resolve a labor dispute collective action on rights is one year from the date of acknowledgment of the instance whereby the disputing party believes that its legal rights have been violated.

The time the statute of limitations begins is the date of acknowledgment or initial recognition of the breach whereby each disputing party believes its legitimate rights and interests have been violated.  Determining the precise time the statute of limitations begins is very important, because from there we can determine the exact time when the statute of limitations expires for requesting a dispute resolution, and ultimately to determine whether the petitioner still has the right to make a request or not.

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