regulations on information security in businesses in Vietnam, information security in businesses in Vietnam, information security in Vietnam, information security in businesses,

Regulations on information security in businesses in Vietnam

Information security is one of the most important issues to the success of a business. However, not all regulations on information security in businesses are clearly displayed, and therefore, it might create some confusion in the relationship between the employee and the employer. So, what are the regulations on information security in businesses in Vietnam?

First of all, it should be noted that there are no explicit regulations on the information security in the Labor Code, rather, it is something that businesses must build up themselves depending on the situation of their operating principle. 

Accordingly, the problem of keeping the information confidential, especially when the employees quit their job and leave the company, has caused many businesses some serious headaches. 

Although the information about the work should have been deleted on the personal devices of the employees before they leave, there can’t be any guarantee that the employees don’t make copies, or there is no hard copy but the information is stored in the brain of the employees. 

Accordingly, they could use many methods to somehow leak the information outside, or worse, to the business’s competitors in the market. 

Methods applied to maintain information security

At the moment, most Vietnamese businesses apply 3 types of methods to keep information secure, including:

  • Recognized in one or several terms in the employment contract. 
  • Recognized in the form of a written agreement separate from the employment contract. 
  • Recognized in the labor regulations of the business. 

The most suitable method to protect information confidentiality

Of the 3 above methods to maintain information security, the second method is the most applied in large companies and corporations as it is the most secure method, establishing a separate written agreement attached to the labor contract.

However, the method might suit a company but it doesn’t mean that every other company can also apply the same way and expect the same result, as the working principle of each company is different. 

So, what is the best form of information security for each type of business so that the rights and best interests of the employer during the contract period and after the contract with employees can be secured?

For the first method, meaning the confidentiality of information is kept in the labor contract, the business may face the risk that when the labor contract expires, so does the confidentiality agreement. 

In addition, choosing this form also makes it difficult for businesses because they do not have the right to choose a dispute resolution agency when a dispute occurs with an employee and must go to court.

For the third method, if the information security is a part or appendix of the labor regulations of the business, the employer might not be able to deal with the information breach by the employees if they are no longer employed at the business. 

The second method which is also the most applied method is multi-functional in the sense that the employer can take the initiative if the labor contract ends because that document is still valid depending on the agreement made between the parties. 

Notably if applying this method, when a dispute occurs, the business can choose to settle the dispute at arbitration to avoid disclosing confidential information because the arbitrator has regulations on confidentiality of adjudicated disputes.

When developing this agreement, the employer and the employee are entitled to agree on the time limit of the agreement, i.e. for how long must the information be kept secret. 

However, businesses should also remember that if it is discovered that an employee violates information security during the period of being an employee at the business, the disciplinary action according to the Labor Code must be taken first before the provisions of the confidentiality agreement.

ASL LAW is the top-tier Vietnam law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.

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