Non-Competition Covenant

The only post-employment restrictive covenant explicitly stipulated under the PRC labour laws is the non-compete restrictive covenant. The employer and the employee may agree on other restrictive covenants, such as non-solicitation restrictive covenants. 

Restrictive covenants including non-compete clause, non-solicitation, etc. are commonly used in practice. In PRC Employment Contract Law, there is no express definition of restrictive covenants. Nevertheless, restrictive covenants are commonly used in practice. For example, an employment contract and a separation agreement may include an obligation not to violate the conflict of interest policy, confidentiality obligation, non-disparagement obligation, non-solicitation obligation and non-compete obligation.