1. The non-competition agreement signed in accordance with the law has legal effect, and the non-competition agreement will take effect after being signed by both the employer and the employee;
2. According to the relevant laws and regulations, the personnel of the non-competition agreement are limited to the senior managers, senior technicians and other personnel with confidentiality obligations of the employer. The non-competition agreement signed by the inapplicable employee is invalid;
3. Does the non-competition agreement have to be valid? The non-competition agreement signed in accordance with the law has legal effect, and the non-competition agreement will take effect after being signed by both the employer and the employee;
4. According to the relevant laws and regulations, the personnel of the non-competition agreement are limited to the senior managers, senior technicians and other personnel with confidentiality obligations of the employer. Non-competition agreements signed by inapplicable employees are invalid.
What are the legal consequences of violating non-competition?
The consequences of violating non-competition depend on the specific circumstances:
1. If the enterprise violates the contract, the employee can terminate the contract;
2. If the shareholders of the company violate the non-competition restriction, they shall be liable for breach of contract and pay liquidated damages. Non-competition is a legal obligation and cannot be terminated by agreement;
3. Non-competition agreement is an agreed obligation. The enterprise violates the promise of the non-competition agreement and fails to pay the compensation, and the employee still fails to pay the compensation after being urged. At this time, employees can exercise the right to terminate the contract of the non-competition agreement and be exempted from the corresponding non-competition obligations;
4. The company can waive the non-competition restriction by giving a notice 1 month in advance. Shareholders of the company who violate the obligation of non-competition and cause losses to the employer shall be liable for compensation.
In addition, the company's shareholders agreed on non-competition liquidated damages. If the shareholders of the company violate the agreement, they shall bear the corresponding liability for breach of contract and pay the corresponding liquidated damages according to law. Non-competition refers to the prohibition of competitive specific behaviors of specific personnel who have a specific civil legal relationship with a specific business. 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.
To sum up, the legally signed non-competition agreement has legal effect, and the non-competition agreement will take effect after being signed by both the employer and the employee. According to the relevant laws and regulations, the personnel of the non-competition agreement are limited to the senior managers, senior technicians and other personnel with confidentiality obligations of the employer. Not applicable. Non-competition agreement signed by employees is invalid. Does the non-competition agreement have to be valid? The non-competition agreement signed in accordance with the law has legal effect, and the non-competition agreement will take effect after being signed by both the employer and the employee.
Legal basis:
Article 24 of People's Republic of China (PRC) Labor Contract Law
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, 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.