If you signed a non-compete, and after leaving the company does not pay monthly compensation, send a written demand; if unpaid for a full 3 months you may terminate; posts that never touched trade secrets may seek a ruling that the clause does not take effect

A non-compete means for a period after leaving you may not work for a competitor — up to 2 years — and the company must pay compensation monthly. If no amount was agreed, pay 30% of average wages over the 12 months before leaving, not below the local minimum wage. If for the company’s reasons nothing is paid for 3 months, you may request termination. From 2025, posts that never touched trade secrets may request a ruling that the clause does not take effect

Cost

No money spent. When you leave, keep the original non-compete agreement and evidence that the company did not pay monthly

Benefit

Non-competes may only bind senior managers, senior technical staff, and others with confidentiality duties. The term is at most 2 years. The company must pay economic compensation monthly during that term. If no compensation amount was agreed, pay 30% of average wages over the 12 months before leaving, and not below the local minimum wage. If for the company’s own reasons nothing is paid for 3 months, the worker may request termination of the non-compete. If the company terminates on its own initiative, it must pay an extra 3 months of compensation. From 2025, workers whose posts never knew or touched trade secrets may request a ruling that the clause does not take effect. If the agreed scope exceeds the secrets they actually knew, the excess is void. Official case: a pharmaceutical company sued CTO Zheng for 7100000 yuan in liquidated damages. The court found the new employer’s products were not substitutes for the former company’s, that the non-compete scope should be limited to secrets he actually knew, and dismissed the claim in full (nationwide)

Notes

The statute looks only at whether, for the company’s reasons, nothing was paid for a full 3 months; a written demand is the author’s suggested way to keep evidence. Conversely, if the agreement is valid and the company paid monthly, and you still join a competitor, you must pay the agreed liquidated damages. After paying, you may still be required to finish the remaining non-compete term. Agreements with senior managers, senior technical staff, and similar people with confidentiality duties that also ban competing work while employed are valid even if the company pays no extra money. Aside from non-competes and special training service periods, the company may not agree that you pay liquidated damages; see Section 19, item 22 (being asked for liquidated damages when leaving).

Sources · 3

1. 全国人大常委会 (2012). 劳动合同法（2012 年修正，第二十三、二十四条）. yjglj.fushun.gov.cn/008/20260622/d846d3c2-df3…（抚顺市应急管理局转载）；最高人民法院 (2020). 关于审理劳动争议案件适用法律问题的解释（一）（第三十六至四十条）. court.gov.cn/zixun/xiangqing/282121.html
2. 最高人民法院 (2025). 关于审理劳动争议案件适用法律问题的解释（二）（法释〔2025〕12 号，第十三至十五条）. court.gov.cn/zixun/xiangqing/472691.html
3. 最高人民法院 (2025). 劳动争议典型案例（案例四）. court.gov.cn/zixun/xiangqing/472681.html