Ensuring Enforceability Of Noncompetes In China

Law360, New York (September 29, 2009, 11:02 AM EDT) -- After more than a year since the implementation of the Employment Contract Law[1] (the “Law”) by the People's Republic of China, the law governing noncompetition agreements remains unsettled.

Employers should work closely with counsel to ensure that their noncompetition agreements are up to date and enforceable in China.

The general rule is that the employee must receive reasonable compensation for the noncompetition agreement to be enforceable. Underneath this general rule, however, two traps wait silently for the unwary.

To Specify or Not to Specify Compensation?...
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