In May 2014, the Guangzhou Intermediate People’s Court, the highest court in Guangzhou, issued the Guangzhou Meeting Minutes on Various Issues in the Trial of Employment Disputes, which provide clarification on some controversial employment issues often faced by employers, such as those related to non-compete compensation, waiver and release of claims, and open-term contracts for dispatched employees.
For example, the Guangzhou meeting minutes provide that if a non-compete agreement is silent on the non-compete compensation, the employee may decide whether to perform the non-compete obligations, which essentially means the company no longer can force the employee to abide by the non-compete restriction.
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Business Law Digest is compiled with the assistance of Baker & McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Baker & McKenzie by e-mailing Danian Zhang (Shanghai) at: danian.zhang@bakermckenzie.com