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What is "competition restriction"

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What is "competition restriction"


        

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  • 2024-05-26 14:01:17

    Prohibition of business strife, also known as avoidance of business strife and avoidance of business strife, is a legal measure taken by employers against employees to protect their business secrets, which is in accordance with legal provisions or mutual agreement;

    During the duration of the labor relationship or within a certain period after the end of the labor relationship, restrict and prohibit employees from taking part-time jobs in business competitors during their employment in the company;

    Restrict and prohibit employees from engaging in businesses that compete with their own units after leaving, including not working in other business units that produce similar products or operate similar businesses and have competitive relationships or other interests;

    It is not allowed to take a part-time job or hold a post in other employers that produce similar products or engage in similar businesses and have competitive relationships, nor to produce similar products or engage in similar businesses that compete with the original unit.

    [Legal Basis]

    According to Article 23 of the Labor Contract Law, employers and workers can agree in the labor contract to keep the business secrets of employers and confidential matters related to intellectual property rights.

    For workers who are obligated to keep secrets, the employer may agree on non competition clauses with the worker in the labor contract or confidentiality agreement, and agree that after the termination or rescission of the labor contract;

    Economic compensation shall be given to workers monthly within the period of non competition. If a worker violates the stipulation on non competition, he shall pay liquidated damages to the employer in accordance with the stipulation.

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