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What does non-competition mean?
Provisions on non-competition are as follows:

1, that is, employees with special significance shall not run the same business projects for themselves or others as the enterprises they work for within a certain period after the dissolution or termination of the labor contract;

2. The obligation of confidentiality means that as long as business secrets exist, employees have the obligation of confidentiality whether they work in the company or not;

3. During the period of non-competition, the employing unit shall pay economic compensation to the workers according to law, and the workers shall not be employed by other employing units that are competitive with their own production or operation of similar products and engaged in similar businesses, and shall not start their own businesses to produce or operate similar products and engage in similar businesses;

4. Non-competition personnel are limited to the senior managers, senior technicians and other personnel with confidentiality obligations of the employing unit.

The compensation clauses of the non-competition agreement are as follows:

1. If the standard and payment form of economic compensation are agreed in the non-competition agreement between the employer and the employee who has the obligation to keep the business secrets of the employer, such agreement shall prevail. If the employer fails to pay the economic compensation as agreed, and the employee still fails to pay it upon request, the employee may terminate the non-competition agreement;

2. If the non-competition agreement does not stipulate the standard and payment form of economic compensation, the employee may require the employer to pay economic compensation. Disputes between the two parties can be resolved in accordance with the procedures for handling labor disputes. Where the employing unit requires the laborer to continue to perform the non-competition agreement, it shall pay the economic compensation in one lump sum according to the standards confirmed by the labor dispute settlement institution and the non-competition period agreed by both parties, and the laborer shall continue to perform the non-competition obligation; If the employer waives the requirement of non-competition for the remaining term, it shall pay the economic compensation that has been fulfilled according to the standards confirmed by the labor dispute handling institution;

3. Before the non-competition agreement comes into effect or during the performance, the employer shall give up the non-competition requirements for the workers, and shall notify the workers one month in advance.

To sum up, the contracting object of the non-competition agreement is limited to the key technical personnel and management personnel who master the important business secrets of the enterprise or have an important influence on the competitive advantage of the enterprise. The scope includes all kinds of enterprises in the same industry that have a competitive relationship with the company and that the company believes have become or may become competitors. Non-competition agreement means that after the termination or rescission of the labor contract, the employer and other workers who know the business secrets of the unit or have a significant impact on the operation of the unit are not allowed to work in the employer that produces similar products, operates similar businesses or has other competitive relations within a certain period of time, nor are they allowed to produce similar products or operate similar businesses with the original unit itself.

Legal basis:

Article 24 of People's Republic of China (PRC) Labor Contract Law

Scope and duration of non-competition restrictions The personnel who are restricted from non-competition 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.