Trade secret is information obtained from financial and intellectual investment activities, which has not been disclosed and has the potential to be used in business. In the case where an employee discloses the trade secret of the enterprise, how will they be handled?
Article table of contents
What happens when employees disclose their company's trade secrets? (Illustration)
1. Disclosure of a company's trade secrets is prohibited
According to point b, clause 1, Article 45 of the 2018 Competition Law, the following acts of infringing on trade secret information are prohibited:
- Accessing and collecting trade secret information by circumventing the security measures of the information owner;- Disclosing and using trade secret information without the owner's permission.
Additionally, clause 2, Article 23 of the 2012 Labor Code stipulates that when employees work directly related to trade secrets and technological secrets according to the law, the employer has the right to make a written agreement with the employees on the content, duration of protection of trade secrets, technological secrets, benefits, and compensation in case employees violate.
Thus, according to the above regulations, disclosure of a company's trade secrets is prohibited. Therefore, if a company has an agreement with employees about not disclosing trade secrets and the employees violate it, they will be disciplined by the company and fined according to the law.
In addition, individuals and organizations that access and collect trade secret information by circumventing the security measures of the information owner will be fined according to the administrative violation penalties in the field of competition.
2. Penalties for employees disclosing trade secrets
Firstly: Termination for employees disclosing the company's trade secrets
According to Article 126 of the 2012 Labor Code, employers apply the disciplinary measure of termination for employees who commit theft, embezzlement, gambling, intentional injury, use of drugs within the workplace, disclosure of trade secrets, technological secrets, infringement of intellectual property rights of the employer, or acts causing serious damage or threatening to cause particularly serious damage to the property or interests of the employer.
Thus, according to the above regulations, the company can impose the highest disciplinary measure of termination if the employee discloses trade secrets. However, termination must comply with the principles and procedures of labor discipline handling according to the law. Specifically, Article 123 of the 2012 Labor Code stipulates the principles and procedures for handling labor discipline as follows:
- The employer must prove the fault of the employee;- Participation of the representative organization of the labor collective at the grassroots level is required;- The employee must be present and has the right to defend themselves or ask others to defend them; if they are under 18, a parent or legal representative must be present;- The handling of labor discipline must be recorded in a written document.
Secondly: Administrative fines for disclosing trade secrets
According to Article 16 of Decree 75/2019/ND-CP, fines range from 200,000,000 VND to 300,000,000 VND for the following acts:
- Accessing and collecting trade secret information by circumventing the security measures of the information owner;- Disclosing and using trade secret information without the owner's permission.
Additionally, clause 7, Article 4 of Decree 75/2019/ND-CP stipulates that the maximum fine level specified in Article 16 of this Decree applies to violations by organizations; for individuals committing the same administrative violation in competition, the maximum fine is half of the fine level for organizations.
Therefore, according to these regulations, employees who disclose trade secrets without permission will be fined from 100 million to 200 million VND.
Above are the editorial team's consultations from THU KY LUAT on penalties for disclosing trade secrets. We hope this information helps our valued customers and members understand the legal regulations regarding the disclosure of trade secrets and the corresponding penalties.
Ty Na
