In Decision No. 755/2018/QĐ-PQTT of the People’s Court of Ho Chi Minh City, a dispute arose between Ms. Đỗ Thị Mai T and Company X over a Non-Disclosure and Non-Compete Agreement (NDA & NCA). This case highlights important legal principles regarding arbitration’s jurisdiction in employment disputes.

Legal Grounds & Key Points:
1. Arbitration in Labor Disputes:
Under Vietnam’s Law on Commercial Arbitration 2010, arbitration can resolve commercial contract disputes. In this case, the NDA was deemed independent from the labor contract, granting VIAC jurisdiction.

2. Validity of Arbitration Agreements:
As per Clause 2, Article 2 of the Law, even if a dispute is employment-related, an NDA with an arbitration clause can fall under arbitration jurisdiction.

3. Legal Basis for the Award:
Ms. T’s objections to the arbitration process were dismissed. Article 13 of the law states that a party who engages in arbitration without raising timely objections loses the right to challenge the award.

Final Outcome:
The court upheld the arbitration award, ordering Ms. T to pay over 200 million VND to Company X and cover arbitration costs.

Key Takeaways:
1. Arbitration’s Scope in Labor Disputes:
Arbitration can apply to labor-related disputes if governed by an independent agreement like an NDA.

2. Challenge of Arbitration Jurisdiction:
Timely objections are crucial in maintaining the right to challenge an arbitration clause.

3. Freedom of Contract:
Contracts must be clear and comply with legal frameworks, especially when including arbitration clauses.
Link: https://drive.google.com/file/d/15ifG5U3kViixS04wDXz7YaFL02E7sCdO/view?usp=sharing

Should you need any legal support, don’t hesitate to reach out to our Lawyers & Associates. We are pleased to assist your legal need.
THE LAM LAW LLC – Your legal need, Our Mission
🏢Indochina Park Tower, # 4 Nguyen Dinh Chieu Str, Dakao Ward, Dist 1, Ho Chi Minh City.
📞Tel: +84 (0)28 710 58 222 – 6288 3798 – Hotline: +84 (0) 97 309 77 77
✉Email: info@thelamlawllc.com