Non-competition obligation: it imposes an obligation on the obligor not to engage in a specific non-competition act, and the law or contract requires him not to engage in a certain act, so in essence, the non-competition obligation is an obligation of omission.
The legal prohibition of business strife is based on the direct provisions of the law and is mandatory, and the parties may not give up through consultation. For example, Article 148 of China's Company Law stipulates: "Directors and managers shall not engage in the same business as the company in which they work or for others, and shall not engage in activities that harm the interests of the company. The income from the above business or activities shall be owned by the company. Directors and managers are not allowed to enter into contracts or conduct transactions with the Company, unless otherwise stipulated in the Articles of Association or otherwise unexpected in the shareholders' meeting. "In addition, China's Partnership Enterprise Law and Sino-foreign Joint Venture Law also have relevant provisions. The legal prohibition of non-competition in China is common in some commercial laws, mainly aimed at senior managers such as directors, managers and partners of companies and enterprises. The legislative reason is that the directors, managers, partners and other senior managers of companies and enterprises are people who manage the affairs of companies and enterprises, are familiar with the operation of companies, master a large number of business secrets and core competitiveness of companies and enterprises, and can easily use the above resources for huge personal interests, thus seriously affecting the legitimate interests of companies and enterprises. If we let them work for the company on the one hand and engage in similar affairs for themselves or others on the other, we can't rule out their self-interest.
Legal basis:
People's Republic of China (PRC) labor contract law
Article 23 Obligation of confidentiality and non-competition The employer and the employee may agree in the labor contract to keep the business secrets of the employer and confidential matters related to intellectual property rights.
For the workers who have the obligation of confidentiality, the employer may stipulate the non-competition clause with the workers in the labor contract or confidentiality agreement, and stipulate that after the labor contract is dissolved or terminated, the economic compensation will be paid to the workers on a monthly basis during the non-competition period. If the laborer violates the non-competition agreement, he shall pay liquidated damages to the employer in accordance with the agreement.
Article 24 Scope and duration of non-competition restrictions The personnel who are restricted from non-competition are limited to the senior managers, senior technicians and other personnel with confidentiality obligations of the employing unit. The scope, area and time limit of non-competition shall be agreed by the employer and the employee, and the agreement on non-competition shall not violate the provisions of laws and regulations.
After the dissolution or termination of the labor contract, if the personnel specified in the preceding paragraph go to other employers that have a competitive relationship with their own units to produce or operate similar products or engage in similar businesses, or start their own businesses to produce or operate similar products or engage in similar businesses, the non-competition period shall not exceed two years.