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2 In relation to the Labour Contract Law of China:
(a) explain a non-competition clause in a labour contract;
(b) state the various persons who are subject to non-competition obligations in their labour contracts with their employer;
(c) state the conditions and term of duration for a non-competition clause contained in a labour contract.
答案:
2 This question requires candidates to explain the non-competition clause, and state the persons who are subject to non-competition obligations and the conditions for a labour contract to include a non-competition clause under the Labour Contract Law of China.
(a) The non-competition clause refers to a clause contained in a labour contract or a confidentiality agreement, under which an employee agrees to maintain the trade secret of the employer and the confidentiality of matters relating to the industrial properties of the employer for a period of time after the termination or dissolution of a labour contract.
(b) In accordance with Article 24 of the Labour Contract Law, the persons who are subject to non-competition obligations include the employer’s senior management, senior technicians and other personnel with confidentiality obligations.
(c) In accordance with Articles 23 and 24 of the Labour Contract Law, where a labour contract contains a non-competition clause, the same contract shall also stipulate that the employer pays monetary compensation to the employee on a monthly basis during the term of non-competition after the termination or dissolution of the labour contract. The term, counted from the termination or dissolution of the labour contract, shall not exceed two years.
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