Research On The Effectiveness Of Non Competition Agreements Without Agreed Economic Compensation

Under the background of informatization,the flow of talents is becoming more frequent,and the risk of trade secret disclosure is also gradually increasing.In order to curb the leakage of business secrets and business resources caused by talent flow,signing non-competition agreements with workers has become an important defense means for enterprises.However,because enterprises have a natural advantageous position in the labor relations,they often sign unequal agreements with workers by virtue of their own status,which has greatly damaged the right of workers to choose jobs.At this stage,there are many non-compete agreements that only stipulate the obligations of workers but not the corresponding economic compensation.In practice,there are great differences on the effectiveness of such non-compete covenants.There are no clear provisions in the existing laws.In order to make decisions,some regions have issued legal documents in succession.However,due to different interpretations of the legal provisions and different recognition of the effectiveness of the non-competition agreement,this has led to great differences in the results of judicial decisions,and workers are also confused and dissatisfied with the trial results.For this reason,This article analyzes the problem and proposes solutions.In addition to the introduction and conclusion,this paper is mainly composed of the following five sections.The first section introduces typical cases to introduce legal issues that arise in different stages regarding the effectiveness of non-competition agreements without agreed economic compensation.The second section defines the connotation and characteristics of non-competition agreements without agreed economic compensation,and then analyzes the effect of economic compensation clauses on the effectiveness of non-competition agreements.The third section examines and evaluates the legislative and judicial status of economic compensation for non-competition in China.By organizing legislation and its judicial status,it was found that the existing legal provisions are relatively general and there are no clear legal provisions on related issues,resulting in different judicial decisions.In the fourth section,based on the analysis of the current situation,the problems in determining the effectiveness of non-competition agreements that have not agreed on economic compensation at the current stage are found.After sorting out,this article concludes that the main problems currently exist are as follows: First,whether economic compensation is the effective requirement of non-competition agreement is still controversial.Second,there is no clear standard for determining the amount of economic compensation,which is also one of the reasons why a large number of non-competition agreements do not agree on economic compensation.Third,there is a dispute over the performance of non-competition obligations after the payment of liquidated damages.The existing judicial interpretation stipulates that the laborer should continue to perform the obligations stipulated in the non-competition agreement after the payment of liquidated damages.This paper believes that this is unfair to the laborer and does not conform to the principle of oblique protection embodied in the labor contract legislation.The fifth section gives suggestions for improvement,and this article provides three improvement suggestions.First,relevant legal provisions should be improved,and it should be clear that economic compensation clause is a necessary clause of non-competition agreement,but non-competition agreement without economic compensation is not of course invalid.Second,on the basis of the existing judicial interpretation,further improve the standard of determining the amount of economic compensation.Third,give workers the right to terminate the contract obligation after the payment of liquidated damages,and implement the principle of protecting workers in favor of the labor contract law legislation.