Labor Contract Law of the People's Republic of China
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 confidentiality obligations, the employer may stipulate the non-competition clause with the workers in the labor contract or confidentiality agreement, and agree to pay the workers monthly economic compensation within the non-competition period after the labor contract is dissolved or terminated. If the laborer violates the non-competition agreement, he shall pay liquidated damages to the employer in accordance with the agreement.
article 24 the personnel with non-competition restrictions are limited to the senior managers, senior technicians and other personnel with confidentiality obligations of the employing unit. The scope, region and duration 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, the non-competition period for the personnel specified in the preceding paragraph shall not exceed two years when they go to other employers that are competitive with their own units in producing or dealing in similar products and businesses, or when they start their own business to produce or deal in similar products and businesses.
article 25 except under the circumstances stipulated in articles 22 and 23 of this law, the employer shall not agree with the employee that the employee shall bear the liquidated damages.
Extended information
According to different standards, non-competition can be divided into the following standards:
1. Non-competition can be divided into statutory non-competition and agreed non-competition. The statutory prohibition of business strife is expressly stipulated by law, and the agreed prohibition of business strife is agreed by the parties through contracts. This is the basic classification of non-competition. Judging from the current legal practice, China adopts this classification method;
2. Non-competition can be divided into non-competition in the same industry and non-competition in part-time. The former is to prohibit the obligor from directly engaging in the same or similar business as the obligee; The latter is to prohibit the obligor from concurrently engaging in other non-competitive behaviors similar to the obligee's business.
if the obligor for prohibition of business strife concurrently serves as an unlimited shareholder of other companies or enterprises related to the obligee's rights or a partner of a partnership, it will also affect the interests of the original company or enterprise.
3. Prohibition of business strife can be divided into broad prohibition of business strife and narrow prohibition of business strife. The obligation subject of broad prohibition of business strife is an unspecified majority, such as the exclusive right to use trademarks and patents that are prohibited from being used by people other than the obligee (because this exclusive right itself has been forced by law and does not belong to the scope of prohibition of business strife);
In a narrow sense, non-competition is to restrict the non-competition behavior of the obligor who has a special relationship with the obligee.
4. Prohibition of business strife can be divided into prohibition of business strife between employers and employees and prohibition of business strife between parties to general civil contracts. The non-competition relationship between employers and employees is usually based on the existing labor relationship. In order to protect their own business interests or other secrets, or according to the law or signing an agreement with employees, employers require employees to abide by the statutory or agreed non-competition obligations.
in general, the obligation of non-competition in civil contracts is mainly set by the parties to the contract, which more embodies the principle of freedom of contract. By agreement, the parties to the contract restrict the obligor from engaging in activities competing with the obligee, so as to protect the interests of the obligee.
Baidu Encyclopedia-Prohibition of Business Competition
Baidu Encyclopedia-Labor Contract Law of the People's Republic of China