If the employer and the employee have a non-competition agreement, they shall also agree with the employee on the non-competition economic compensation to be paid to the employee when the labor contract is terminated or dissolved, and the amount shall not be lower than the employee's annual wage income in the employer. Workers who violate the non-competition agreement shall pay liquidated damages to the employer, and the amount of liquidated damages shall not exceed three times the economic compensation paid by the employer to the workers for non-competition.

The employer may terminate the labor contract:

1, the employer and the employee reach an agreement through consultation;

2. The employee is proved not to meet the employment conditions during the probation period;

3. The laborer seriously violates the rules and regulations of the employing unit;

4. The laborer seriously neglects his duty and engages in malpractices for selfish ends, thus causing great damage to the employer;

5. The laborer establishes labor relations with other employers at the same time, which has a serious impact on the completion of the work tasks of the unit, or the employer refuses to correct it;

6. The employer concludes or changes a labor contract against the true meaning of the employee by means of fraud or coercion or by taking advantage of the danger of others;

7. The laborer is investigated for criminal responsibility according to law;

8. The laborer is sick or injured outside the work, and cannot engage in the original work after the prescribed medical treatment period expires, nor can he engage in other jobs arranged by the employer;

9. The laborer is not competent for the job, and he is still not competent for the job after being trained or adjusted;

10. The objective conditions on which the labor contract was concluded have changed greatly, which makes it impossible to perform the labor contract, and the employer and the employee fail to reach an agreement on changing the contents of the labor contract through consultation;

1 1. The employer reorganizes in accordance with the provisions of the Enterprise Bankruptcy Law;

12, the employer has serious difficulties in production and operation;

13. The enterprise still needs to lay off employees after changing the labor contract due to the change of production, major technological innovation or adjustment of operation mode;

14. Other major changes have taken place in the objective economic conditions on which the labor contract was concluded, resulting in the inability to perform the labor contract.

To sum up, the risks faced by enterprises in illegally dissolving labor contracts need to face double indemnity.

Legal basis:

Article 23 of People's Republic of China (PRC) Labor Contract Law

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 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.

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, 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.