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What Are Trade Secrets And Competition Restrictions?

2010/10/19 17:05:00 59

Trade Secret Competition Restriction: Labor Law

Trade secret

It refers to the technical information and operational information that is not known to the public, can bring economic benefits to the obligee, and is practical and protected by the obligee.

restraint of trade

The employee is not entitled to compete in a company during the period of his work. He can not form his own company and compete with the unit himself. He must not engage in competitive business with the original unit without the consent of the original unit within a certain period of time from the original unit. He must not accept the employment of the original unit's competing rivals, provide advisory services and service services for the original unit competitors, and do not employ other employees of the original unit to work for himself, nor shall he instigate any other employees of the original unit to accept the outside employment.

according to

Labour law

The twenty-second provision stipulates that both parties can agree on confidentiality through equal consultation. The labor law gives the two sides great room for negotiation.

From the time limit, the Ministry of Labour's notice on certain issues concerning the flow of workers in the enterprise in October 11, 1996 stipulates that the employing units may stipulate that workers who hold business secrets shall not engage in work related to the original work within a certain period of time after the termination or dissolution of the labor contract (not exceeding 3 years).

In addition, enterprises compete for their employees and do not allow them to work in the same industry, which restricts the employees' right to choose jobs independently, which will inevitably affect the employees' economic income.

Therefore, from a fair point of view, the employer should pay the compensation fee to the employee in accordance with the agreement in the period of competition, and the annual compensation fee is not less than 1/2 of the total annual remuneration obtained from the enterprise before the employee left the contract.

Since the workers have not fulfilled the content of the conservative business secrets and cause the business secrets of the employers to be infringed, according to the stipulations of the contract law, the defaulted person should pay two to three times the compensation amount equivalent to the limit of the competition allowance to the original unit; if the breach of contract causes significant losses to the unit, the breach of contract shall be compensated according to the actual amount of the original unit.

But on the other hand, those who have the obligation to compete for competition will have sufficient evidence to prove that the unit has not implemented the policies of the relevant national scientific and technological personnel, and is subjected to unfair treatment and the unit violates the articles of competition and does not pay or has no justifiable reasons for arrears of compensation fees.