Skill

legalcode-non-compete-analysis-cn

Deep enforceability analysis of Chinese non-compete clauses (竞业限制) governed by Labor Contract Law of the PRC (劳动合同法) Articles 23-24 and the SPC Consolidated Judicial Interpretation on Labor Disputes (最高人民法院关于审理劳动争议案件适用法律问题的解释(一), effective 1 January 2021) and SPC Judicial Interpretation II (Fa Shi [2025] No. 12, effective 1 September 2025). Covers the three eligible employee categories (senior management / senior technical staff / confidentiality-obligation holders), mandatory monthly economic compensation (国家默认30%上一年月均工资; Shenzhen 50% minimum), the 2-year hard duration cap, geographic and activity scope reasonableness, employer waiver mechanics and timing (pre-termination vs. post-termination), employee breach consequences (liquidated damages + compelled continued performance), employer non-payment release trigger (3 consecutive months), employer early-termination 3-month compensation penalty, mandatory pre-litigation labor arbitration, and the 2025 SPC Interpretation II proportionality and access-gating rules. Produces ENFORCEABLE / AT-RISK / NON-COMPLIANT / VOID classification with confidence-scored enforceability assessment, per-deficiency remediation steps, and Glass Box audit trail. Use when reviewing a non-compete clause (竞业限制条款) in a Chinese employment contract (劳动合同), executive agreement, severance package, or standalone restrictive covenant agreement; advising on waiver strategy at termination; assessing an employee's ability to join a competitor; planning workforce restructuring; or reviewing non-compete provisions in M&A employment due diligence for a Chinese target or acquiree. Routes from legalcode-non-compete-analysis (cross- jurisdictional router) for China-specific deep analysis. China only — not for commercial non-competes in M&A seller/shareholder agreements (Anti-Monopoly Law context) or in franchise agreements.