Compliance Guidelines for Enterprises Implementing Non-Compete Restrictions

    Article 1: These Guidelines are formulated in accordance with laws and regulations such as the Labor Contract Law, to protect enterprises' trade secrets, safeguard workers' employment and career choice rights, and guide enterprises in implementing non-compete restrictions lawfully.

    Article 2: These Guidelines apply to enterprises that establish labor relationships with workers and implement non-compete restrictions on workers obligated to keep trade secrets.

    Recently, responsible officials from the MOHRSS Department of Labor Relations answered related questions from reporters: The monthly economic compensation paid by the enterprise to the worker shall generally not be lower than 30% of the worker's average monthly wage in the twelve months preceding the termination of the labor contract, and not lower than the local minimum wage standard. If the non-compete period exceeds one year, the monthly economic compensation generally should not be lower than 50% of the worker's average monthly wage in the twelve months preceding the termination of the labor contract.