Research Into The Limitation Of Competitions In The Law Of Labor Contract

In a modern society commercial secrets, which attract attention by companies, became the tool of success, and the limitation of competitions emerged from the protection of company’s commercial secrets against its own employee. The limitation of competitions means that the employee, who is to comply with the rule of keeping company’s secrets, should refrain from performing any competitive activity against the company for a certain period in a certain area, after he quits the company. The limitation of competitions is namely a dilemma: it has its two sides, the positive side is that protecting the company’s commercial secrets kept secret, not to be leaked,and known; the downside is to limit employees’ right to choice an occupation freely, affecting the employment of workers. To achieve the original intention of the establishment of the limitation of competitions, the law should limit the limitation of competitions within a reasonable range, and making the limitation of competitions play a beneficial side.The regulations concerning the limitation of competitions in the <Law of Labor Contract in China> are quite ambiguous, and in practice disputes occur easily. <The interpretation of some problems by application of laws in labor conflicts by the People’s Supreme Court(4)>, which took effect in 2013, interprets the problems concerning the limitation of competitions, yet there are some problems and conflicts. They deserve our consideration and investigation.This paper consists of five parts: In the first part, An overview of the basic theoretical issues related to the limitation of competitions.The focus is made on the relation and the distinction between the limitation of competitions and commercial secrets to clarify the rationality and the necessity of the limitation of competitions, so that the system of the limitation of competitions is built and perfected to protect commercial secrets. In the second part, the actual situation of Chinese legislation concerning the limitation of competitions is described. Through the research into the related legislation of China it tries to find the defects and proposes the way to amend them. In the third part, For non-competition discusses the beneficial aspects of development need to be made legal restrictions need to be controlled in the community and within the scope of acceptable. In this way, the objective of the legislation is reached, and the law can protect the reasonable right of the person who keeps commercial secrets, and guarantee his freedom of choosing occupation as well. In the forth part, some problems of Chinese legal system concerning the limitation of competitions, and at the same time the author proposes her own points of view and suggestions.In the fifth part, it discusses the legal responsibility in case of infraction against the limitation of competitions. It is expected to provide some models to Chinese comprehensive law system concerning the limitation of competitions in future legislation.