Articles of law :Regulations on non competition

《Labor contract law》


Article23 An employer may enter an agreement with hi employees in the labor contract to require his employees to keep the business secrets and intellectual property of the employer confidential.


For an employee who has the obligation of keeping confidential, the employer and the employee may stipulate non-competition clauses in the labor contract or in the confidentiality agreement and come to an agreement that, when the labor contract is dissolved or terminated, the employee shall be given economic compensations within the non-competition period. If the employee violates the stipulation of non-competition,it shall pay the employer a penalty for breaching the contract.


Article24  The persons who should be subject to non-competition shall be limited to the senior mangers,senior technicians,and the orther employees,who have the obligation to keep secrets,of employers.The scope,geographical range and time limit for non-competition shall be stipulated by the employer and the employee.The stipulation on non-competition shall not be contrary to any laws or regulations.


After the dissolution or termination of a labor contract,the non-competition period for any of the persons as mentioned in the preceding paragraph to work in any other employer producing or engaging in products of the same category or engaging in business of the same category as this employer shall not exceed two years.