Three years of work for nothing! The programmer was ordered to pay Tencent 976,000 yuan in compensation and return 158,000 yuan for violating the "non-compete agreement"[Copy link]
Source: CSDN
On March 1, the China Judgments Online website published an announcement - the second instance civil judgment of the second instance of the non-competition dispute between Sun and Tencent Technology (Shanghai) Co., Ltd. The civil judgment issued by the Shanghai No. 1 Intermediate People's Court shows that the plaintiff Sun must return the non-competition compensation of 158,000 yuan to Tencent Technology (Shanghai) Co., Ltd. within seven days from the date of the judgment's effectiveness, and will also pay a non-competition liquidated damages of up to 976,000 yuan.
Public information shows that Sun was born in July 1991 and joined Tencent on July 15, 2015. The two parties signed a labor contract, stipulating that the contract period was from July 15, 2015 to September 30, 2018, and Sun worked in the Northern Lights Studio. After the contract expired, the two parties renewed the labor contract until September 30, 2024, stipulating that Sun would work in the Innovation Product Center.On March 14, 2019, Sun submitted his resignation and worked until March 28, 2019. On March 27, 2019, Sun signed the "Non-competition Notice" issued by Tencent, which stated that Sun's non-competition period was from March 29, 2019 to March 28, 2020, and reiterated the non-competition agreement, breach of contract liability, and liquidated damages standards that Sun should abide by in the labor contract. Sun signed the notice.The verdict shows that in March 2018, Sun's fixed salary was 20,050 yuan. From April to September 2018, his monthly fixed salary was 21,850 yuan. From October 2018 to February 2019, his monthly fixed salary was 25,150 yuan.From March to June 2018, Tencent gave Sun a monthly housing subsidy of RMB 1,250, and in July 2018, the housing subsidy was RMB 568.18. From May to July 2018, Tencent paid Sun other bonuses of RMB 21,306.67, RMB 21,306.67, and RMB 21,306.66 per month, respectively.Tencent also paid Sun RMB 344.38 in November 2018 as a “pre-tax payment” and paid Sun RMB 113.08 in other bonuses in February 2019. Tencent also paid Sun RMB 169,650 in year-end bonuses for 2018.Since April 2019, Tencent has paid Sun a total of 9 months of non-competition economic compensation at the rate of 22,569.36 yuan per month, totaling 203,124.24 yuan.Since April 2019, Sun has provided Tencent with a "Personal Information Notification Form for Personnel Subject to Non-competition Restrictions" via email every month, stating his employment status after leaving Tencent. The first two months were unemployed, and since June 2019, he has been working for Kezhirui Company, where his job content and position are information system engineer, responsible for the research and development of the company's management platform. He has signed a labor contract with Kezhirui Company from June 3, 2019 to June 2, 2021.On January 21, 2020, Tencent applied for arbitration to the Shanghai Xuhui District Labor and Personnel Dispute Arbitration Committee, requiring Sun to: 1. Return the non-competition compensation of RMB 203,124.24 from March 29 to December 31, 2019; 2. Pay a penalty of RMB 1,083,329.28 for violating the non-competition obligation.On May 7, 2020, the arbitration committee made a ruling: 1. Sun must return the non-compete compensation of RMB 203,124.24 to Tencent within seven days from the date the ruling takes effect; 2. Sun must pay the non-compete liquidated damages of RMB 1,082,329.28 to Tencent within seven days from the date the ruling takes effect. Sun was dissatisfied with the ruling and filed a lawsuit with the court of first instance.Based on the facts ascertained and in combination with Sun's work situation, the court confirmed that Sun violated his non-competition obligation by working for a company that competes with Tencent after leaving his job. According to the agreement, Sun should return the non-competition economic compensation of RMB 158,000 that Tencent had paid during the breach of contract, and pay a non-competition liquidated damages of RMB 976,000.During the second instance of this court, neither party submitted new evidence. After trial, it was found that the facts determined by the first instance court were correct, and the court confirmed them according to law.The court held that the focus of the second instance dispute in this case was: 1. Whether Sun violated the non-competition agreement; 2. If Sun violated the non-competition agreement, whether the liquidated damages determined by the first instance court were reasonable; 3. If Sun violated the non-competition agreement, how much non-competition compensation should be returned.According to the first instance, Tencent was established on July 23, 2008, with the business scope of developing, designing and producing computer software, selling self-produced products, providing related technical consulting and technical services, and engaging in the import and export of goods and technology. Tencent has stipulated in the non-competition clause that it is a competing company or other organization, including but not limited to Alibaba, Baidu, Qihoo 360, ByteDance (Toutiao) and other companies and their affiliates.
Previously, Tencent's former employees Xu Mouhua and Qian Mouhua were also sued by Tencent for violating the non-compete agreement. Among them, Xu Mouhua was sentenced to pay a penalty of 19.4 million yuan, becoming the case with the largest penalty amount in domestic non-compete restriction cases.
How is the economic compensation for non-compete clause stipulated? This is the first time I have seen this kind of operation.
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Published on 2021-3-19 17:06
Nowadays, there are too many people in the IT and electronics industries who are ignorant of the law and are too optimistic about immediate benefits.
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Published on 2021-3-4 15:02
Looking at the business of the companies, if there is overlap, there is competition. Of course, the final decision will be subject to the court's determination.
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Published on 2021-3-4 14:58
Looking at the business of the companies, if there is overlap, there is competition. Of course, the final decision will be subject to the court's determination.
They may not be really ignorant of the law, and it is not uncommon for them to have a fluke mentality. Marx said that capital will be like this and that in the face of profit, and the same is true at the individual level. This is also part of human nature.
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Published on 2021-3-4 16:40
chunyang published on 2021-3-4 14:58 Looking at the company's business, if there is overlap, there is competition. Of course, the final decision is subject to the court's determination.
What if the competing business is newly added by the company after employment?
maoshen posted on 2021-3-4 15:02 There are too many legal illiterates in the IT and electronics industries now,, too optimistic about immediate interests,,,,,,,,
They may not be really ignorant of the law, and it is not uncommon for them to have a fluke mentality. Marx said that capital will be like this and that in the face of profit, and the same is true at the individual level. This is also part of human nature.
I think it still constitutes a non-competition infringement. Non-competition restrictions have clauses and deadlines. During the deadline, no matter what the reason is, unless it is force majeure (such as government or JD recruitment), those who have signed the non-competition agreement should abide by it and consciously avoid all work content involving competition.
Since you have signed and taken the money, you should abide by it. If you don't want to be restricted, don't sign and don't take the money.
I also have another question: If a newly signed contract does not constitute a non-competition when it is signed, but later the new company or the old company enters a new industry, or starts a new business (two situations), resulting in a non-competition, what should be done at this time?
This is usually mentioned in non-compete agreements, and theoretically it still constitutes non-compete, but whether it will be pursued depends on the terms of the agreement.
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Published on 2021-3-5 14:51
annysky2012 posted on 2021-3-4 22:59 I have learned that there is such a thing? Is this kind of lawsuit only in Beijing, Shanghai, Guangzhou and Shenzhen?
There are so many lawsuits related to root law in Shanghai,, intellectual property,, trademark
I heard that there are a lot of labor disputes in China. Workers have their wages deducted for using the toilet. The treatment provided by the labor agency is very different from what the factory actually pays. Some employees are not paid overtime for overtime work. Some employees are not compensated for work-related injuries caused by accidents during work.
Daqin Zhengsheng published on 2021-3-5 10:22 I heard that there are many labor disputes in China. Workers have their wages deducted for going to the toilet. The treatment given by the labor agency is very different from the actual treatment given by the factory. Some employees...
Hahaha, this additional non-compete contract should be considered an unfair clause, and the amount of compensation is far greater than the legal amount of compensation. It is obviously bullying young workers with little social experience. Even if the contract is signed, it is invalid. It is recommended that this young worker appeal to the Supreme People's Court.
What do you think is the probability that Tencent's legal department will sign an invalid agreement? And it involves a labor contract, which is the most fundamental agreement for the company?
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Published on 2021-3-5 15:01
What do you think is the probability that Tencent's legal department will sign an invalid agreement? And it involves a labor contract, which is the most fundamental agreement for the company?
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Published on 2021-3-5 14:55
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