Does a non-compete obligation not apply to ordinary employees during their employment?
摘要
The Company Law of the People’s Republic of China explicitly states that directors and senior managers have non-compete obligations during their employment. The Employment Contract Law clearly provides that employers may negotiate non-compete obligations with employees, and employers shall compensate resigned employees for the non-compete period and employees must pay liquidated damages for breaching the non-compete obligation. However, whether non-compete obligations and liquidated damages are applicable to ordinary employees during their employment remains ambiguous. To probe deeper into this issue, this article discusses some cases in Beijing, Guangdong and Shanghai in an attempt to solve the puzzle in judicial practice.
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