Research On Economic Compensation Of The Business Strife Limitation

The business secret plays a critical role in the commercial competition amongemployers, and may even be contributed as a key factor to the employers’ dominantposition in the market. The Business Strife Limitation Regime of The Labor ContractLaw has offered a beforehand approach to safeguard the business secret in thepossession of the employers. Under the design of this regime, the employees sacrificepart of the employment selection right in the exchange of the economic compensationprovided by the employers. Meanwhile, the employers ensure the safety of the businesssecret with the payment of the economic compensation to the employees.The first section of the article has described the different modes of the businessstrife limitation regime and the economic compensation. Furthermore, it points outsome restrictions in the business strife limitation regime.The second section of the article explains the function of the economiccompensation applied in the business strife limitation regime, which casts light uponits advantage in the balance of employers’right and the employees’right.In the following section of the article, the author attempts to tackle the issue thatwhen there is no beforehand agreement set out by the employers and the employees,how to determine the effect of the business strife limitation clause. From the author’spoint of view, the lack of the beforehand compensation agreement does not certainlylead to the invalid of the business strife limitation clause. In contrast, when it considersthe protection of the employers’ business secret and employees’ living condition, it ismore reasonable to define the effect of the clause as revocable or alterable.Furthermore, in the final section of the article, the author puts the effort on thepractical issue related to payment levels and payment methods of the economiccompensation generated from the business strife limitation, which is directly linked tothe amount of the compensation to be paid to the employees. Taking the averageamount of salary in thepast twelvemonths beforetheemployers’quit as a base number,using the number range between30%to1as a coefficient, the multiply of the base number and the coefficient would prove to be a reasonable standard of the payment ofthe economic compensation.Actually, the current monthly payment method of economic compensation hasseen its weaknesses in practice. The introduction of the lump sum payment mechanismand the free-selected mode of the payment method grant the employees support bothfrom the aspect of legitimacy and the equity of rights and liabilities.