The Research On The Employee's Non Competitive System

An employee's none competitive clause refers to an Employee's obligation of not working for another competitive business for a specific period of time during or after employment with a specific employer. The goal is to keep one employer's commercial secret in order to maintain the business benefit and competitive advantage. Obligation of not working for the competitive business originates from the legal rule or the parties'agreement, which is one kind of no commitment obligation. The execution of limiting no-competition obligation to employee should be limited properly because the obligation of no competition limits the rights of employee.The traditional theory basis of the employee's none competitive system is the economic theory of"the proxy cost", the faithful duty of labor law and the principle of proper limitation. The traditional theory's deficiency is that there is no explanation about the reason why the protection to employer's business secret is needed. Therefore, it is necessary to illustrate the allocation principle of business secret rights in the theory. There are numerous conflicts between the employee's none competitive system and other rights which requests us to solve by using benefit balance principle. We need to use the benefit balanced principle to solve these rights conflicts.An employee's none competitive clause is divided into in-office no competition and off-office no competition. The British law believed that the employee's in-office no competition is the implied clause of the labor contract. The French law deducts none competitive limitation from the explicit faithful duty. Since there is not any explicit description about faithful duty, so whether there is such limitation in China is unclear. Regarding to off-office no competition, there are different clauses according to different countries. As for the effectiveness of employee's off-office no competition agreement, the mainland legal code stipulates in detail while UK-US law allows the lawyers to make judges by themselves. Though there are related stipulations in Chinese "Work Law of contract", there are still many parts needed to be improved.In order to fulfill employee's none competitive clause, our country should establish in- office employee's faithful duty and make a clear description of limitation from different aspects, such as goal, object, region, field and compensatory payment.