When signing a non-competition contract, the object and scope of non-competition should be clearly defined. The non-competition agreement must be in written form, clearly stipulating the time, specific business scope, geographical scope, compensation amount and payment method of the non-competition obligation. Units must have specific business secrets, and the scope of business secrets should be clearly defined in the contract. General business information, knowledge, skills and experience should not be regarded as business secrets. The unit must give employees reasonable economic compensation, which is the basic requirement for the entry into force of the non-competition agreement, and the compensation standard should be the same as the income earned by employees when they are on the job. After signing the non-competition agreement, the laborer who violates the non-competition agreement shall pay liquidated damages to the employer in accordance with the agreement to protect the legitimate rights and interests of the employer.

legal ground

Article 23 of the Labor Contract Law of People's Republic of China (PRC), the employer and the employee may agree in the labor contract to keep the business secrets of the employer 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.