Case Study On Validity Of Non-competition Agreement When Economic Compensation Not Agreed

As for the validity of non-competition agreement when economic compensation is notagreed,the two courts’s viewpoints are different,so the verdicts are differenttoo.And for the same issue,courts all over the country also Can not reach aconsensus.There are some typical viewpoints,such as ‘effective’,‘invalid’,‘revocable’,‘unilaterally not binding’ and‘unilaterally not binding undercertain conditions’,etc. Through comparative study,the author believes the severalviews above do not meet the requirements of the judicial practice. The author believesthat, the point of view ‘not established’ is more in line with the requirements ofthe judicial practice.But it is not thorough enough in protecting workers’ legitimaterights and interests.So It is necessary to do some breakthroughs and innovations inthe next legislation.The paper consists of six sections.The first chapter introduces the case and the verdicts of the two courts.The second chapter summarizes the two focuses of controversy of the case.The firstfocus is on the validity of non-competition agreement when economic compensation isnot agreed.The second focus is on " Labor Contract Law " Article24. Due to limitedtopics, this article only selects the first focus of controversy to discuss.In thischapter,the author Conducts a preliminary sorting out from the judgment of the two court.And the author believes that The reason for the judgment of the two court isthat the economic compensation for the non-competition agreement is unconscionable.But two conclusions are diametrically different.one is ‘revocable’,the other is‘invalid’. In accordance with the judicial interpretation of unconscionability,thelabor contract should be revokable.So the court of the second instance is lack of legalbasis.Meanwhile,the prerequisite unconscionability is debatable.The third chapter introduces the basic theory of the non-competition agreementsystem, which describes the legal concept and legal characteristics of thenon-competition agreement system,and the advantages and disadvantages for protectionof trade secrets.Also two main ideas ‘definite theory’and‘negative theory’areintroduced. The author tends to support the ‘negative theory’.So it should be inmind as much as possible to consider from the weak side the workers’ legitimate rightsand interests.The fourth chapter introduces different viewpoints,and comments on them,whichaffirm that‘unilaterally not binding’and ‘unilaterally not binding under certainconditions’ could be refered in the future legistation.The fifth chapter discusses the judicial solution. The author believes that theseviews above do not meet the requirements of the judicial practice. Therefore, theauthor puts forward his own view the‘not established’.The author believes that theeconomic term of the compensation as the principal term of the agreement is one ofthe elements for the establishment of agreement. The term of the compensation is thebottom line of the existing legislation on the protection of workers’ legitimate rightsand interests. It’s different from ‘price term’,which can be added by the judgeswhen it is not clear or agreed upon.It’s because of the difference in value orientationfor the labor law and the civil law.The sixth chapter mainly discusses the ‘not established’ view’s limitation inprotection of the legitimate rights and interests of workers.The author refers to‘unilaterally not binding’ and ‘unilaterally not binding under certainconditions’ views,and proposes several personal legislative proposals.