Research On Legal Issues Of Economic Compensation For Non-competition

As the reform of the national economic system continues to deepen,technological development is advancing by leaps and bounds,creating opportunities for enterprises while also making them face serious challenges.The protection of trade secrets is a part of modern enterprise management that cannot be ignored,and is also the key to maintaining core competitiveness in an increasingly competitive market.While accepting workers to create economic benefits for them,the employer must also guard against the risk of leaking trade secrets due to non-performance of non-compete obligations after the worker leaves the company.After a worker leaves a job,he or she is not responsible for the employer,and the employer often signs a non-compete agreement with the worker in order to avoid leaking his or her trade secrets and high technology to competitors.The non-compete can effectively avoid the risk of leaking trade secrets brought by competition,but the non-compete period will affect the exercise of free labour rights of workers,and even affect their quality of life,so the law requires the employer to reasonably share the labour obligations and give the workers appropriate economic compensation to build a harmonious labour relationship and alleviate the contradictions between the two.China has provided for a non-competition compensation system in the Labour Contract Law of the People’s Republic of China and the 2021 Interpretation of the Supreme People’s Court on the Application of Law in Hearing Labour Dispute Cases(I)(hereinafter referred to as "Judicial Interpretation(I)"),but the validity of noncompetition agreements lacking financial compensation provisions or with compensation amounts lower than the statutory standard,the period of payment of noncompetition compensation,the The issues such as the basis of calculation are still not detailed enough and relatively general,and there is a certain degree of conflict of interest between the employer and the worker,which makes it difficult to effectively solve the problems in judicial practice.In addition,the provisions of the non-compete compensation system in China vary from place to place in terms of the payment period,payment methods and payment standards,resulting in the frequent occurrence of different judgments in the same case.In view of this,it is of great theoretical value and practical significance to construct a scientific and reasonable compensation mechanism for non-competition.By studying the connotation and characteristics of non-competition compensation,this article summarises and composes the relevant laws and regulations in China,and analyses their jurisprudential basis and legislative purpose,so as to clarify the significance of a reasonable non-competition compensation system for both parties in employment.Local regulations are collected and collated,with the regulations of Zhejiang,Beijing and Shanghai as the main cities,and the differences between the regulations of the above cities are analysed.At the same time,judicial decisions of the last three years were introduced to summarise the focus of disputes and reasons for decisions in the cases,on the basis of which a reasonable construction of a noncompetition compensation system in China was discussed.The main points are:defining the validity of non-competition agreements without agreed financial compensation clauses;improving the rules on the period of payment of noncompetition compensation;enriching the forms of payment of non-competition compensation;and reasonably designing the criteria for calculating non-competition compensation.This will create a fair and just business environment for operators and provide solid legal protection for workers.