Question 56. In cases the LC is completely invalid due to being signed by the brand manager on behalf of the enterprise without legal authorisation from the enterprise’s legal representative then State administrative authorities for labour instruct the parties to re-sign the LC with authorised signatory which has provisions similar to the invalid LC, how will the new LC be resolved if one of the parties refuses to re-sign?

Answer:

Only Courts are the competent authorities to declare the LC invalid.[1]When making a decision declaring the LC invalid, the Courtsshall settle the legal consequence of the declaration[2].Accordingly, when the LC is invalid due to the unauthorised signatory, the parties shall re-sign the LC [3]. Within 15 days from the date of receiving the decisions declaring the LC wholly invalid due to unauthorised signatory, the State administrative authorities for labour where the enterprise’s head offices are located shall guide the parties to re-sign the LC. As such, the competent Courts’ decision declaring the LC invalid and the State administrative authorities for labour guide the parties to re-sign the LC in compliance with the provisions of the labour law. Within 10 days upon the competent Court issues the decision declaring the LC invalid, if there is no appeal, such decision will take legal effect and be enforceable[4].

Legally effective decisions of Courts must be enforced and strictly observed by all agencies, organisations and individuals[5]. Therefore, if one of the parties does not comply with the decision issued by the Courts, the other party has the right to deliver the application to request to the civil judgment enforcement agenciesfor the assistance of performing the decision of the Courts[6]. However, if the decisions issued by the Courts have taken legal effect but the parties agree not to re-sign LC, the Employer and the Employee can still agree to record this matter in writing and notify the civil judgment enforcement agencies[7]. At that time, the head of the civil judgment enforcement agencies shall issue decisions to suspend the judgment enforcementin accordance with the regulations of the Law on Enforcement of Civil Judgments.

[1]Article 50 Labour Code

[2]Article 402.5 CPC

[3]Article 51.2 Labour Code

[4]Article 372 and Article 482 of the Civil Procedure Code

[5]Article 19 of the Civil Procedure Code

[6]Article 7 of Lawon Enforcement of Civil Judgments

[7]Article 6 of Lawon Enforcement of Civil Judgments