Law

Do employees still need to comply with non compete agreements when they are dismissed? Answer from the Ministry of Human Resources and Social Security

2025-10-10   

Do employees still need to comply with non compete agreements when they are dismissed? The Ministry of Human Resources and Social Security gave an answer through the official WeChat official account on October 10. Article 23, Paragraph 2 of the Labor Contract Law stipulates that for employees who have confidentiality obligations, the employer may stipulate non compete clauses with the employee in the labor contract or confidentiality agreement, and agree to provide economic compensation to the employee on a monthly basis during the non compete period after the termination of the labor contract. If an employee violates the non compete agreement, they shall pay a penalty to the employer in accordance with the agreement. Article 37 of the Interpretation of the Supreme People's Court on the Application of Law in the Trial of Labor Dispute Cases (I) stipulates that if the parties have agreed on non compete restrictions and economic compensation in the labor contract or confidentiality agreement, and the employer requires the employee to fulfill the non compete obligation, or if the employee requests the employer to pay economic compensation after fulfilling the non compete obligation, the people's court shall support it, unless otherwise agreed. (New Society)

Edit:Wang Shu Ying Responsible editor:Li Jie

Source:China News Service

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