After signing a non-compete agreement, if the employer fails to pay compensation monthly, send a written notice; if payment still doesn’t come after 3 months, you may terminate the agreement. Workers who never handled any trade secrets can request that the clause be declared invalid

The arbitration is free. When you leave your job, keep the original copy of the non-competition agreement and evidence that the company did not make monthly payments. If the company disputes your claim, first apply for labor arbitration. The arbitration is free of charge and the case will be concluded within 45 days of acceptance, with a maximum extension of 15 days. If you are dissatisfied, go to court. The ordinary first-instance procedure is stipulated to be completed within 6 months. It can be extended and the attorney fees will be paid by yourself.

Non-compete clauses only apply to senior executives, highly skilled technicians, and anyone with a duty to keep secrets. The maximum term is 2 years, and the employer must provide monthly financial compensation during that time. If the amount isn’t set, it’s 30% of your average monthly wage over the last 12 months, never lower than the local minimum wage. If the employer doesn’t pay for 3 months for reasons on its end, you can ask to cancel the clause. If the employer ends it voluntarily, it must pay an extra 3 months of compensation. From 2025, workers who never knew about or touched any trade secrets can ask to have the clause declared void. Any part of the clause that goes beyond what they actually knew about is also invalid. Official case example: A pharmaceutical firm sued its former CTO, Zheng, seeking 7.1 million yuan in damages. The court ruled that Zheng’s new employer’s products had no overlap with the original firm’s offerings, so the non-compete scope should be limited to what Zheng actually knew. The claim was dismissed in full (nationwide ruling).

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）. https://yjglj.fushun.gov.cn/008/20260622/d846d3c2-df3d-4c4c-af16-898ede43e1ee.html（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）. https://www.court.gov.cn/zixun/xiangqing/282121.html；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）. https://www.court.gov.cn/zixun/xiangqing/472691.html；最高人民法院 (2025). 劳动争议典型案例（案例四）. https://www.court.gov.cn/zixun/xiangqing/472681.html；全国人大常委会 (2007). 劳动争议调解仲裁法（第四十三、五十三条）. https://rsj.ankang.gov.cn/Content-2150407.html（安康市人力资源和社会保障局转载）

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).