Suzhou lawyer Zhou Zhongsheng Tel: 6210 4280 189QQ:80 494 1115

[subject] restrictions on workers, provisions of China's "labor contract law" is the senior management personnel, technical personnel and the employee has a confidentiality obligation. Workers of all enterprises are likely to become the subject of prohibition of business strife, in practice the enterprise often is entered into the competition restriction agreement and senior management personnel, technical personnel, business executives, employees and technicians.

[source] the prohibition of business strife agreement. For senior executives in office for a period of prohibition of business strife, for after leaving if the agreed obligation. For senior technical staff turnover if have agreed the same obligation. For other personnel confidential, usually need to have two parties: the first agreement, contract employee has a confidentiality obligation, the laborer is confidential personnel. The second agreement, agreed after the departure of prohibition of business strife obligation.

[term] two years.

[compensation] limitation of competition shall be agreed upon by both parties.

[against the prohibition of business strife duty] is a contract liability, liquidated damages. The second is the tort liability of violation of contractual obligations, to the enterprise caused the loss of compensation. In addition, if the leak of commercial secrets, criminal responsibility is also suspected of disclosure of commercial secrets.

[Law]"The people's Republic of China Labor Contract Law" article twenty-third of employers and workers in the labor contract agreed upon conservative employer's trade secrets and confidential matters related to intellectual property.(confidentiality agreement)

If an employee has a confidentiality obligation, the employing unit may agree with the employee on the competition restriction provisions in the labor contract or confidentiality agreement, and agreed to the termination orTermination of labor contractLater, during the term of the competition restriction monthly compensation. If the employee breaches the competition restriction provisions, he shall pay liquidated damages to the employer in accordance with the contract. (the competition restriction agreement)

The twenty-fourth competition shall be limited to senior management personnel, units of senior technical personnel and other confidential personnel. The scope of prohibition of business strife, regional, the period stipulated by the employer and the worker, the competition restriction agreement shall not violate the provisions of laws, rules and regulations.

The discharge or termination of the labor contract, the provisions in the preceding paragraph staff and the units of production or business operation of similar products, engage in the same business with competitive relationship with other employers, or to open their own production or business operation of similar products, engage in the same business's competition limitation period, not exceeding two years.

Ninetieth workers in violation of the provisions of this law to terminate the labor contract, or violates the stipulations of the labor contract or confidentiality obligations of prohibition of business strife, and causes losses to the employing unit, it shall assume the liability for compensation.