Discussion Of The Prohibition Of Business Strife In China’s Company Law And Labor Contract Law

Recently, with the government’s gradual decentralization, the establishment of Shanghai Free Trade Zone and the subsequent possible deep-seated reforms, the production factors of goods, services, capital, technology and personnel are bound to flow more freely; China’s market economy is bound to get a more in-depth and active development. Business secrets will become more and more important in the fierce market competition, while the flow of talents knowing business secrets will be overwhelming.As an important part of intellectual property, business secret plays an important role in the market competition. However, the flow of talents has become the main way of the loss of business secrets according to large numbers of related cases. In order to avoid the disclosure of business secrets and to ensure fair market competition, more and more enterprises try to maintain their competitive advantages through prohibition of business strife (POBS). However, the POBS restricts the employees’ rights of labor freedom and free employment, which are basic rights of constitution. Therefore, it requires us to understand the meaning of POBS correctly. Meanwhile, there are also differences between the regulations of POBS in the Company Law and Labor Contract Law of China. The conflict and competition of the above provisions need to be solved exactly. These differences are also the classification of statutory prohibition of business strife and promissory prohibition of business strife. Then, the POBS system of China has many legal loopholes, which needs reasonable improvement.In order to solve the above problems, this paper attempts to show the author’s viewpoint through comparative method, on the basis of summarizing previous researches. This paper consists of four parts:The first chapter compares the definition of POBS through comparative method from the aspects of the broad definition, strict definition and its relationship with unfair competition. And this part will explore the legitimacy of the POBS from the aspects of its importance and the theoretical background;The second chapter states the conflict and competition by cases and describes the regulations of POBS, which are laying the foundation for the following parts;The third chapter mainly analyzes the status quo and legal loopholes of China’s POBS;The last chapter puts forward reasonable proposals for POBS in the Company Law and Labor Contract Law, which are comparative.