The so-called non-competition restriction means that after the termination or dissolution of the labor contract, the employer and other workers who know the business secrets of the unit or have a significant impact on the operation of the unit are not allowed to work in the employer that produces similar products, operates similar businesses or has other competitive relations within a certain period of time, nor are they allowed to produce similar products or operate similar businesses with the original unit itself.
legal ground
Article 23 of the Labor Contract Law stipulates that the employer and the employee may agree in the labor contract to keep the business secrets of the employer and confidential matters related to intellectual property rights. For the workers who have the obligation of confidentiality, the employer may stipulate the non-competition clause with the workers in the labor contract or confidentiality agreement, and stipulate that after the labor contract is dissolved or terminated, the economic compensation will be paid to the workers on a monthly basis during the non-competition period. If the laborer violates the non-competition agreement, he shall pay liquidated damages to the employer in accordance with the agreement.