Violation Of Competition Agreement To "Rival" Company To Work

[case replay] Mr. Wang is a salesperson in the production of A company. He signed a labor contract with the employer at the beginning of his employment in 2010. The contract stipulated that "no matter what the reason is, after the employee has left, he will not be employed by the unit that has competition relationship with the employing unit within three years."

If the worker breaks the contract, the worker pays the liquidated damages to the employer for 100 thousand yuan at a time.

In April 2013, Mr. Wang met a business manager of shampoo production company B at an exhibition fair.

Mr. Ren took a look at Mr. Wang's negotiation strategy and distribution means, and he intended to dig Mr. Wang into B company with high salary.

At first, Mr. Wang refused and explained to his manager the breach clause in the labor contract signed at the time of entry.

Mr. Ren said that the breach of contract stipulated in the labor contract itself is illegal, and if A company investigates Mr. Wang's liability for breach of contract, B will also be willing to pay the penalty for Mr. Wang.

Mr. Ren's sincerity touched Mr. Wang.

Thus, in May 2010, Mr. Wang resolutely resigned despite the repeated retention of A company.

Three months later, Mr. Wang signed a labor contract with B company and became the sales manager of B company.

After knowing that Mr. Wang of the company has become the "manager" of B company, the A company immediately summoned the Ministry of justice to study and hired a lawyer to decide to apply for arbitration.

[referee] A company

The door submitted an application for arbitration, asking Mr. Wang to pay 100 thousand yuan for the A company.

Mr. Wang argued that the breach of the gold clause in the labor contract was illegal.

Through the arbitration trial, the ruling supported the arbitration application of A company.

Mr. Wang paid 100 thousand yuan to the original company A for breach of contract.

[lawyer comment] lawyer Zhang Guochen of the water hammer law firm believes that from the above cases, we can easily find that Mr. Wang has switched jobs because of his words.

Is the right manager's argument correct? Generally speaking, it is illegal to stipulate the liquidated damages in the labor contract, that is to say, the manager's understanding is right from the broad perspective of the law.

The twenty-fifth clause of China's labor contract law also stipulates that the employer should not stipulate the stipulation that the worker should bear the penalty for breach of contract.

However, in this case, the terms stipulated in the labor contract between Mr. Wang and A company are not general clauses required in every labor contract, but a special provision called competition restriction.

Then, what are the special provisions of the competition restriction? Competition restriction, also known as competition avoidance and competition avoidance, is a legal measure taken by employers to protect their business secrets for the purpose of protecting their business secrets.

Within a certain period after the end of the period, employees are restricted and prohibited from doing part-time jobs while working in the unit.

To restrict and prohibit employees from engaging in competition with their own units after leaving the office, including not having to work in other business units that produce similar products or run similar businesses and have competitive relations or other stakes, and do not have part-time employment or other positions of other employing units that are competing in the production of similar products or operating similar businesses, nor can they produce similar products or similar businesses that are competitive with their original units.

It can be seen that the essential purpose of the competition restriction clause is to protect the commercial secrets of the employing units and prevent the relevant competing units from malicious competition.

According to the twenty-third clause of the labor contract law of China, the employer can stipulate the competition restriction clause in the labor contract or confidentiality agreement with the laborers who have the obligation of confidentiality.

If a laborer violates the stipulations of the competition restriction, he shall pay liquidated damages to the employing unit in accordance with the contract. "

A's approach is clearly correct.

In this case, the purpose of the agreement between A and Mr. Wang is to protect the business secrets of A company and the business resources accumulated by perennial business.

Mr. Wang's behavior in going to B company may lead to the loss of these resources, and at the same time, he also violated the terms of competition which he signed with A company.

Therefore, the arbitration award supports the arbitration request of A company, which is in conformity with the law of our country.