Will the non-competition restriction be lifted after resignation?
Generally speaking, the non-competition restriction is not lifted after employees leave their jobs, but should be observed. Non-competition restrictions take effect after employees leave their jobs.
The Labor Contract Law of People's Republic of China (PRC) stipulates that 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.
According to the Labor Contract Law of People's Republic of China (PRC), the personnel with non-competition restrictions are limited to the senior managers, senior technicians and other personnel with confidentiality obligations of the employer. 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.
Legal basis: Article 17 of the Judges Law of People's Republic of China (PRC) stipulates that a judge shall not act as an agent ad litem or defender as a lawyer within two years after leaving the people's court. After leaving the people's court, a judge may not act as an agent ad litem or defender in the court of first instance. A judge's spouse or children may not act as agents ad litem or defenders in the court where they are located.