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China Law Insight

Labor & Employment

Does a non-compete obligation not apply to ordinary employees during their employment?

Posted in Labor & Employment

By Jiang Junlu, Luo Kaitian, Wu Di King & Wood Mallesons’ Commercial & Regulatory group

jiang_junluIn September 2008, Mr. Li signed a three-year fixed-term employment contract and a non-compete agreement with Company A, an internet finance business. It was agreed that, as a business specialist in Company A, during his employment and for one year afterwards, Mr. Li would not engage in any competitive conduct without the consent of Company A. There was a liquidated damage clause for breach of the non-compete obligation.

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