Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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New Caselaw on Non-Disclosure and Non-Compete Agreements

Precedential Decision by Judiciary or Regulatory Agency

Authors: Bernadette Fahy, Partner, and Tran Thi Kim Luyen, Associate – APFL & Partners Legal Vietnam LLC

On November 1, 2023, the Supreme People’s Court upheld the validity of a non-disclosure and non-compete agreement based on the principle of freedom to create and undertake civil rights and obligations. The court determined the agreement did not violate any legal prohibitions and held that that when a Non-Disclosure Compete Agreement (NDCA) is an independent agreement between the parties with a valid arbitration clause, any dispute regarding the NDCA is within the jurisdiction of commercial arbitrators.

Consequently, employers may prefer separate NDCAs instead of including non-disclosure and non-compete clauses in the employment contracts to ensure that any disputes regarding non-disclosure or the non-compete are resolved by a commercial arbitration tribunal. Disputes under an employment contract must be referred to labor conciliators, a labor court or a labor arbitration tribunal which are more likely to find that a non-compete agreement is contrary to the right of an employee to freely work for any employee, and therefore invalid.

New Regulations Establishing the Vietnamese Chefs Employment and Vocational Training Association

New Order or Decree

Authors: Bernadette Fahy, Partner, and Tran Thi Kim Luyen, Associate – APFL & Partners Legal Vietnam LLC

On December 18, 2023, the Vietnamese Ministry of Home Affairs issued a decision allowing the establishment of the Vietnamese Chefs Employment and Vocational Training Association, a socio-professional organization. The Association has legal entity status, along with its own seal and bank account and shall ensure its own budget, headquarters, and means of operation.

This decision took effect on December 18, 2023.

New Circular on the Working and Rest Hours of Offshore Petroleum Workers

New Regulation or Official Guidance

Authors: Bernadette Fahy, Partner, and Tran Thi Kim Luyen, Associate – APFL & Partners Legal Vietnam LLC

On November 8, 2023, the Vietnamese Ministry of Industry and Trade issued regulations on the working hours of employees who work regularly at offshore oil and gas projects. The working shifts may not exceed 12 hours per day, and the maximum working session may not exceed 28 days. For employees who work irregularly, work shifts may not exceed 12 hours per day, and the maximum working session may not exceed 45 days.

In terms of rest periods, in addition to the requirement of a minimum rest period of 10 consecutive hours after each shift, the total duration of rest breaks during the shifts, or sessions shall be at least 60 minutes in which there must be a break of at least 30 consecutive minutes.

The Circular took effect on December 25, 2023.