According to the provisions of Articles 23 and 24 of the Labor Contract Law, the employing unit may agree on confidentiality matters in the labor contract or confidentiality agreement with senior management personnel, senior technical personnel and other personnel with confidentiality obligations, and after the labor contract is dissolved or terminated, it is agreed to give economic compensation to the workers every month 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.
The area, duration, economic compensation and the amount of liquidated damages for non-competition shall be agreed by the employer and the employee, but the term of non-competition shall not exceed two years.
According to the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Labor Dispute Cases (Fa Shi [2013] No.4), the parties agreed on non-competition in the labor contract or confidentiality agreement, but did not agree to give economic compensation to the workers after dissolving or terminating the labor contract. If the laborer has fulfilled the obligation of non-competition, the employer may be required to pay the laborer 30% of the average salary in the twelve months before the dissolution or termination of the labor contract, which shall not be less than.
If the employer fails to pay the economic compensation for three months, the employee may request the people's court to terminate the non-competition agreement and pay the economic compensation for three months; After the employee violates the non-competition agreement and pays the liquidated damages to the employer, the employer may require the employee to continue to perform the non-competition obligation as agreed.
Labor Contract Law
Article 23 The employer and the employee may agree in the labor contract to keep the employer's business secrets 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.
Twenty-fourth persons with non-competition restrictions 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.