What is a non-compete agreement?
In order to prevent internal data, core technology and other information from being leaked, the company will sign a non-compete agreement with employees in core positions. The agreement requires that these employees cannot go to competitor companies to engage in similar business for 1~2 years after leaving the company. The company will also pay these employees a certain amount of non-compete compensation (20%-50% of the basic monthly salary when employed) during the non-compete period.
Once the employee violates the non-compete agreement, he must pay liquidated damages according to the requirements of the agreement, some tens or even 1 million, or 3-5 times the annual salary.
If the company does not pay non-compete compensation for 3 consecutive months after resignation, the agreement will automatically become invalid.
Why do companies require employees to sign a non-compete agreement?
Because many emerging industries (Internet, chips, new energy, etc.) are jumping jobs very frequently, large factories poach high-end talents from each other, which brings indelible losses to the company. Eventually, these companies had to sign "non-compete agreements" to deter employees and protect the company's interests from being infringed.
When to sign?
Many companies will sign the employment contract and confidentiality agreement with the employee when they join the company, and in this case, it is difficult for the employee to refuse. In order to keep their jobs, most employees can only choose to sign a non-compete agreement without tearing their faces with the company.
There are also cases where the employee is required to sign the agreement, in which case the employee can ask the company to modify the terms of the agreement, including the compensation ratio and liquidated damages.
Let's take a look at the case of a junior employee who was forced to sign a non-compete agreement
The non-compete agreement should be applicable to senior management personnel, senior technical personnel, etc. But now, more and more grassroots employees are beginning to speak out online, saying that they are forced to sign non-compete agreements.
Xingxing, as a fresh graduate, entered a well-known Internet factory as soon as he graduated, and became a relatively basic procurement and sales specialist, due to the 11-11-6 high-intensity work, she was overwhelmed, and she was employed for less than a year, and dozens of physical examination indicators had problems, and she immediately proposed to resign.
Before leaving, the company required her to sign a non-compete agreement, and after leaving the company, she could get 2500 non-compete compensation every month, and once she violated, she would compensate the company for 24 months' wages and return the non-compete compensation that had been issued.
Xingxing took a chance and risked a huge claim to find a new job, but he didn't expect to be targeted by his former company. The former company followed up and collected evidence that she jumped to the competing company, and in the end, Xingxing was claimed 280,000 yuan in liquidated damages by the former company.
In response to the above cases, netizens have different evaluations
After leaving, the former colleague knocked on the side and asked where he went, whether he had found his next home, which really made people's backs chill, I don't know if he was targeted by the former company.
It is worthy of the work of a major Internet company.
Because of the signing of the non-compete agreement, he can only rely on the non-compete compensation of 3,000 yuan to make a living.
Students studying law said that many in-house counsel are exploiting loopholes in the law.
Some companies use non-compete agreements for the normal operation of the company and reduce losses, but if it is also signed for low-level personnel, it is really not necessary!