Beijing Court Rules On Non-Compete Compensation
A court ruled that an IoT company's lawsuit against a former technical director, Zhao, for violating non-compete obligations failed. The court ruled the company's refusal to pay the individual, identified as Li, lacked reasonable basis under the existing labor contract. The court found that employers cannot use the lack of trade secret access as a basis to refuse payments. Judge assistant Huang Qiuyue analyzed that extending non-compete restrictions to workers without access to commercial secrets is improper. The ruling supports workers' requests to invalidate non-compete clauses when employers fail to provide compensation. The court noted that some employers have improperly conflated trade secrets with the personal knowledge, skills, and experience accumulated by workers.
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Sources · 7 independent
“法院經審查認為... 兩者實際經營的主營業務與核心產品存在本質差別... 並非同一相關市場中的競爭”
“法院經審查認為 暗設兩家公司的經營範圍 雖然在寬範類別上存在部分交叉 但二者實際經營的主營業務與核心產品存在本質差別”
“在合同解除或者终止之后的 在2012年內應當履行經業限制義務 公司每個月按照解除或者終止勞動關係 支持的月基本工資的1%向李某支付經濟補償”
“用人單位以他不屬於敬業限制的人員範圍 拒絕支付敬業限制經濟補償金 缺乏合理依據”
“If an employer refuses to pay corresponding compensation for non-compete restrictions on the grounds that the worker is not a subject of such restrictions, the court should deny this behavior.”
“If an employer refuses to pay the corresponding compensation on the grounds that the worker is not subject to non-compete restrictions, the court believes this should be given a negative evaluation.”
“If an employer refuses to pay the corresponding compensation on the grounds that the worker is not subject to non-compete restrictions, this behavior is illegal. The court believes this should be given a negative evaluation.”
“If an employer refuses to pay corresponding compensation on the grounds that the worker is not subject to non-compete restrictions, this behavior is illegal. The court believes this should be given a negative evaluation.”
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