PRC Employment Contract Law
中华人民共和国劳动合同法
New employment contract law imposes greater requirements on employers.
Date:
July 2007
CLP Reference: 2200/07.06.29
PRC Reference: 中华人民共和国主席令 (十届第65号)
Promulgated: 29 June 2007
Keywords (click to search): [labour contract] [labour law] [labour protection] [trade union] [non-compete clause] [mass layoffs] [downsizing] [contract workers ]
Promulgated: June 29 2007
Effective: January 1 2008
Main Contents: The Law allows an employer to specify in the employment contract of, or a confidentiality agreement with, a worker who bears an obligation of confidentiality an anti-competition clause and monthly compensation for the anti-competition period after the termination or ending of the employment contract. If the worker breaches the anti-competition restriction, he/she shall pay the employer liquidated compensation as agreed.
Persons subject to an anti-competition restriction shall be limited to the employer's senior management personnel, senior technical personnel and other persons with an obligation of confidentiality. Once an employment contract is terminated or ends, the term of the anti-competition restriction that prohibits a person from serving with a competitor that produces or deals in the same type of product or engages in the same type of business as the employer, or prohibits him/her from opening his/her own business to produce or deal in the same type of product or engage in the same type of business may not exceed two years.
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