Question 47: If Employees and Employers have an agreement that Employees will not work for Employers’ competitors in a certain period after they resign, and if they violate the agreement they must pay compensation to Employers, and such violations are agreed to be settled by arbitration at the Vietnam International Arbitration Centre (VIAC), then is the VIAC a competent agency to settle this dispute? If the VIAC has the authority to settle the dispute, and the arbitral award forces Employees to pay compensation to Employers, is this award against Article 10 of the Labor Code and Article 9 of the Employment Law with respect to the Employee’s freedom to engage in any employment?
Is it correct that the VIAC has the authority to settle disputes related to the agreement that Employees will not work for Employers’ competitors in a period after resignation (Agreements in restraint of competition)? The VIAC is an arbitration centre which operates according to the Commercial Arbitration Law and relevant guiding documents. So, the VIAC…