Competitiveness restriction is that the employer stipulates that the employee has confidentiality obligations. The labor contract or confidentiality agreement stipulates that the employee will not get a competitive employer, producing similar products or operating similar businesses that have a competitive relationship with the original unit for a period of time after termination or dissolve a labor contract of the labor contract. Within the time limit for competition, the employer shall provide labor compensation to the workers monthly.

Q:	Generally, who needs to sign the competition restriction?
A:	General company senior management personnel, senior technical personnel and other personnel with confidentiality obligations are required to sign competition restrictions.
Q:	Are there any relevant regulations on the amount and duration of compensation for competition restrictions?
A:	The payment standard and time limit for competition restriction can be agreed upon by both parties. However, the maximum period cannot exceed two years.
Q:	What should do if the two parties did not specify the payment standard for the compensation amount when signing the competition restriction agreement?
A:	According to the "Opinions of the Shanghai Higher People's Court on Several Issues Concerning the Application of the "Labor Contract Law"", if the payment standard is not clearly agreed upon when signing the agreement, the parties may continue to pay compensation based on the unanimous intention of the parties to restrict the competition. If the negotiation fails to reach an agreement, the employer shall pay 20-50% of the worker’s previous normal salary.
Q:	How to pay liquidated damages if the worker violates the competition restriction agreement?
A:	If the laborer violates the competition restriction agreement, the amount of liquidated damages paid to the employer shall not exceed 3 times the compensation paid by the employer to the worker.
Q:	Under what circumstances will the competition restrictions automatically expire?
A:	If the employer fails to pay the labor compensation economic compensation to the worker when the labor contract is terminated or cancelled as agreed, the competition restriction clause will be invalid; if the employer terminates the labor contract according to law, the competition restriction clause will still be valid.
Q:	Can employees' compensation for competition restriction be deducted before tax??
A:	Competition restriction compensation actually paid to the workers with confidentiality obligations may be deducted before tax based on internal vouchers and related certification materials in accordance with the contract.