What is the standard for non compete compensation? What percentage of salary?

Non-competition is a means to protect the trade secrets of an enterprise by restricting the right of employees to choose their jobs freely to a certain extent, including both incumbent and former employees. For in-service employees, non-compete is an implied legal obligation, and for departing employees, it must be set up in the non-compete agreement, and the signing of the non-compete agreement is generally at the cost of the employer paying a certain amount of economic compensation. At present, the laws of China stipulate that an employer may stipulate a non-compete clause with an employee in an employment contract or confidentiality agreement, and stipulate that after the termination or termination of the employment contract, the employee will be compensated monthly during the non-compete period.

The law does not clearly stipulate the scope of such economic compensation between the employer and the employee. However, if the employer and the employee have not agreed on the standard of severance to be paid to the employee after the termination or termination of the labor contract, then the employee may request the employer to pay the employee 30% of the employee's average salary for the 12 months prior to the termination of the labor contract in accordance with the provisions of the Interpretation (IV) of the Supreme People's Court on Several Issues Concerning the Application of Labor Dispute Cases. In addition, if 30% of the average monthly wage of the employee is lower than the minimum wage standard of the place where the labor contract is performed, it shall also be paid according to the minimum wage standard of the place where the labor contract is performed.

Hello. It is necessary to pay non-compete compensation.

The amount paid is usually one-third or one-half of the annual salary, and the standard varies slightly from province to province.

However, provided that a written agreement is reached in the original employment contract or before resignation, the non-compete compensation is generally paid monthly after resignation for a period of no more than two years.

There is an agreement on severance payment, which is generally 20%-50% of the original salary.

There is no restriction on going to work in the same industry, and the original unit still has to pay compensation according to the above standards.

Legal socks macro analysis: the compensation for non-compete first depends on whether the employee has agreed on the compensation, and if there is an agreement, it shall be followed, and if there is no agreement, the employer shall pay the employee 30% of the average salary in the 12 months before the termination or termination of the labor contract on a monthly basis.

Legal basis: Article 23 of the Labor Contract Law of the People's Republic of China Article 23 The employer and the employee may agree in the labor contract to keep the employer's trade secrets and confidential matters related to intellectual property rights. For employees who are obliged to maintain confidentiality, the employer may stipulate a non-compete clause with the employee in the employment contract or confidentiality agreement, and stipulate that after the termination or termination of the labor contract, the employee will be compensated monthly during the non-compete period.

If the employee violates the non-compete agreement, he shall pay liquidated damages to the employer in accordance with the agreement.

Legal Analysis: Non-compete compensation standard: 30% of the average salary in the 12 months prior to the termination or termination of the labor contract. If 30% of the average monthly wage is lower than the minimum wage standard of the place where the labor contract is performed, it shall be paid according to the minimum wage standard of the place where the labor contract is performed.

Legal basis: Interpretation of the Supreme People's Court on Issues Concerning the Application of Law in the Trial of Labor Dispute Cases (1) Article 36 Where the parties have agreed on a non-compete restriction in the labor contract or confidentiality agreement, but have not agreed to give the employee economic compensation after the dissolution or termination of the labor contract, and the employee has fulfilled the obligation to restrict the labor contract and requires the employer to pay the employee economic compensation on a monthly basis at 30% of the average salary of the employee in the 12 months prior to the termination or termination of the labor contract, the people's court shall support it. Where 30% of the average monthly wage provided for in the preceding paragraph is lower than the minimum wage standard of the place where the labor contract is performed, it shall be paid in accordance with the minimum wage standard of the place where the labor contract is performed.

Legal Analysis: Non-compete compensation standard: 30% of the average salary in the 12 months prior to the termination or termination of the labor contract. If 30% of the average monthly wage is lower than the minimum wage standard of the place where the labor sales contract is performed, it shall be paid according to the minimum wage standard of the place where the labor contract is performed.

Legal basis: Interpretation of the Supreme People's Court on Issues Concerning the Application of Law in the Trial of Labor Dispute Cases (I) Article 36 Where the party concerned has agreed on a non-compete restriction in the labor contract or confidentiality agreement, but has not agreed to give the employee economic compensation after the dissolution or termination of the labor contract, and the employee has fulfilled the non-compete obligation and requires the employer to pay the employee 30% of the employee's average salary on a monthly basis in accordance with 30% of the employee's average salary for the 12 months prior to the termination or termination of the labor contract, the people's court shall uphold it. Where 30% of the average monthly wage provided for in the preceding paragraph is lower than the minimum wage standard of the place where the labor contract is performed, it shall be paid in accordance with the minimum wage standard of the place where the labor contract is performed.

Article 13 of the Labor Contract Law stipulates that if the parties to a labor contract only agree that the employee shall perform the non-compete obligation, but do not agree on whether to pay compensation to the employee, or if they agree to pay compensation to the employee but do not clearly agree on the specific payment standard, the non-compete clause may be deemed to be binding on both parties based on the unanimous expression of intent of the person in charge of the non-compete restriction when the person in charge of the labor contract agrees. If the amount of compensation is unknown, the two parties may continue to negotiate on the standard of compensation for Yu Shanjin; If no agreement can be reached through negotiation, the employer shall pay 20-50% of the employee's previous normal salary. Where no agreement can be reached through consultation, the restriction period must not exceed two years at the longest.

The minimum standard is 30% of the average salary for the 12 months preceding the termination or termination of the employment contract. Where the parties have agreed on a "non-compete restriction" in the labor contract or confidentiality agreement, but have not agreed to give the employee economic compensation after the termination or termination of the labor contract, and the employee has fulfilled the non-compete obligation and requires the employer to pay the employee 30% of the employee's average salary for the 12 months prior to the termination of the labor contract, the people's court shall uphold it. Where 30% of the average monthly wage provided for in the preceding paragraph is lower than the minimum wage standard of the place where the labor contract is performed, it shall be paid in accordance with the minimum wage standard of the place where the labor contract is performed.

Article 6 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Labor Dispute Cases (IV).