Research On The Effectiveness Of Non-compete Agreements

The validity of non-competition agreements has always been a hot topic of research in the field of labor law.In China,the non-competition system has been introduced from overseas for a relatively short period of time,and some legal provisions are not mature enough,especially the validity of non-competition agreements,which are mainly stipulated in Article 23 and Article 24 of the Labor Contract Law and relevant judicial interpretations.The lack of legal provisions also leads to different judgments and imbalance of interests in practice.There are also many controversies in academic circles and in practice regarding the value orientation of the effectiveness of non-competition agreements and the effectiveness of non-competition agreements under different circumstances.The effectiveness of non-compete agreements is affected by various factors and should be discussed in different situations.From the origin and purpose of non-competition agreements and domestic and foreign regulations,the employer should have protectable business interests,otherwise it is invalid;the subject of the non-competition agreement should be limited to the actual contact with the employer’s business interests;based on the legal nature of the non-competition agreement,the measurement of interests and other considerations,the failure to agree on non-competition compensation should be invalid,and the fulfillment of the non-competition business In the case of a fundamental breach of contract by the employer,the worker is given the right to choose freely,which is conducive to safeguarding the rights and interests of the worker,regulating the behavior of the employer,and preventing the proliferation of non-competition agreements.The "unilateral non-binding theory" gives the workers the right to choose when the employer terminates the employment contract in violation of the law,which may better protect the workers’ rights and interests;the non-competition agreement should have a reasonable period of time,and any agreement beyond the period of time is invalid.The court may also adjust the term according to the characteristics of the industry and the request of the parties;the restriction beyond the reasonable scope of business is an excessive restriction on the rights of workers and exceeds the employer’s need to reasonably protect business interests,and the excess should be invalid;although the current globalization and the development of the Internet,the business scope of enterprises involves a broader geographical area,but no restriction on the geographical area with low market share is still unfair to the workers.The situation of restriction is unfair,therefore,it should be limited to the territory with actual competition,and beyond is invalid.The value orientation of the system of non-competition agreements is to prioritize the protection of labor rights,balance of interests,and reasonableness of the content of restrictions.In order to supplement and improve the system of non-competition agreements,clarify the boundaries of the rights between the two parties,allocate the obligations fairly,make it more scientific and realistic,and provide theoretical support and practical reference.