Improvement Of Criteria For Determining Non-compete Agreement

Enterprises and workers signed a noncompete agreement to protect trade secrets of an effective measure.However, in reality, there is often in corporate abuse of noncompete agreement, damage the lawful rights and interests of employees, which resulted in a conflicts of non-competition and the flow of talent . This is not conducive to the development of market economy. In order to balance the trade secrets and flow of human resources, the paper reference to foreign legislation and practice, make reasonable restrictions on noncompete agreements and the specific objectives of the agreement, objects, time, scope, etc.made of reasonable restrictions, in the hope of making some useful suggestions of standard of perfection noncompete agreement. This paper is divided into three parts:The first part is to propose Covenants Not to Compete in the judicial practice of some existing problems. By introducing the non-compete agreement in the status of judicial practice in China, points out the lack of legislation in the non-competition system. Non-competition disputes, conflicts of the main criteria from the noncompete agreement is not unified. for example, the obligation subject of non-compete agreement is not clear, duration and area restrictions are not reasonable, the price of compensation is not uniform and so on.The second part is a reference to foreign legislation and practice. United States or other developed countries in the study judged standard noncompete agreement, the standard is divided into two areas: the legitimacy standard and reasonable standards. There is not only the effective elements of general agreement , but also the principles of fair and reasonable, to judge and analyze the noncompete agreement's legal effect. Legitimacy of standards should include protection of the interests, protected interests than the interests to be sacrificed and without prejudice to the public interest . Standard of reasonableness is main specific terms of the noncompete agreement, which restrictions on the right career of employees is reasonable, for example, the obligations subject, duration and area restrictions and the price of compensation. Covenants Not to Compete from the United States, which is established in the form a lot of precedent, this part describes a classic case of non-competition disputes , and fully explain how the United States in the judicial practice Identified non-competition criteria.The third part is the recommendations to improve the criteria of noncompete agreement.On the basis of in reference to foreign legislation and case law. With full consideration of actual conditions in China, we could research from the obligation subject, period and regional restrictions, career fields, the price of compensation, as well as breach of contract. View the main problems of the judicial practice, the author have a deep thought on the obligation subject, standard of compensation and breach of contract specifically, to be helpful to improve our noncompete agreement.