Main types of non-compete agreements
1. Non-compete for senior managers and general employees
Based on the different objects of non-competition, non-competition can be divided into non-competition for senior managers and non-competition for general employees.
2. Non-competition during employment and non-competition after resignation
The types of non-compete can also be divided into two types: non-competition during the period of employment and non-competition after the employee leaves the company. The employee's non-competition during employment refers to the employee's non-competition during the existence of the labor relationship. Countries have different understandings of the issue of non-competition during employment.
Things to note about non-compete agreements
1. Objects to sign a non-compete agreement
The non-compete agreement prohibits employees from taking up positions in units that produce similar products or operate similar businesses with the original unit and have competitive relationships or other interests, or from producing and operating similar products or businesses that compete with the original unit. Therefore, the employer only needs to sign a non-compete agreement with employees who have access to, know about, and master trade secrets. Of course, an enterprise should analyze and determine which personnel in the enterprise have mastered the trade secrets based on its own nature and situation. For some ordinary employees, when they learn the company's trade secrets intentionally or unintentionally at work, they should also be included in the scope of signing the non-compete agreement.
2. Scope of non-competition
1. Employers should agree on the scope of non-compete business with employees based on their own circumstances, so as to prevent workers from inadvertently violating the non-compete agreement and causing unnecessary disputes when they are re-employed.
2. When signing a non-compete agreement with the employee, the employer may also agree with the employee on the geographical scope of the non-competition.
But it should be noted that the agreement between the employer and the employee on non-compete restrictions must not violate the provisions of laws and regulations.
3. Liability clauses for breach of contract
According to Articles 23 and 90 of the Labor Contract Law, in the case of violation of non-compete obligations, the enterprise may not only agree with the employee to compensate the employer for the losses when the employee violates the non-compete agreement, but also Liquidated damages can be agreed upon with the employee.
The editor recommends:
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