Labor Contract Law 3

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Article 24 The personnel subject to non-competition obligations shall be limited to the Employer's senior management, senior technicians and other individuals with confidentiality obligations. The scope, geographical limitations and term of the non-competition obligations shall be agreed upon by the Employer and the employee, and they shall not violate any laws and regulations.

After the revocation or termination of a labor contract, the non-competition period for any of the persons mentioned in the preceding paragraph in terms of his working for a competing Employer that produces or deals with the same type of products or engages in the same type of business, or in terms of his setting up his own business to produce or deal with the same type of products or to engage in the same type of business, shall not exceed two years.

Article 25 Save for circumstances stipulated in Article 22 and Article 23 of this law, an Employer shall not enter into an agreement with an employee regarding liquidated damages to be borne by the employee.

Article 26 A labor contract shall be wholly or partially invalid if:

(1) through fraud, coercion or exploitation of the other party's disadvantageous position, a party causes the other party to conclude or amend the labor contract against the latter's true intent;

(2) the labor contract absolves the Employer from legal liability and denies the employee his rights; or

(3) the labor contract is in violation of the mandatory provisions of laws or administrative regulations.

If there is any dispute over the invalidity or partial invalidity of the labor contract, it shall be subject to determination by a labor dispute arbitration institution or a People's court.

Article 27 The partial invalidity of the labor contract shall not affect the validity of the remaining part of the contract, the remaining provisions shall continue to be valid.

Article 28 Where a labor contract is held to be invalid and the worker has performed his obligations, the Employer shall pay the employee labor compensation for such obligations. The amount of labor compensation shall be determined with reference to the labor compensation for employee s in the same or a similar position with the Employer.

Chapter III Performance and Amendment of Labor Contracts

Article 29 The Employer and the employee shall fully perform their respective obligations in accordance with the terms of the labor contract.

Article 30 Employers shall pay their employees labor compensation on time and in full in accordance with the labor contract and state regulations.

An employee may, in accordance with the law, apply for an order to pay at the local People's Court in the event that the Employer fails to pay his labor compensation on time or in full, and the People's Court shall issue such order in accordance with the law.

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