Non-compete Compensation Dispute Involving a Technology Company in Fujian

Case Summary

Plaintiff Li joined Defendant Fujian [Tech] Co., Ltd. as a Research and Development Engineer on 2021/7/1, signing both a written labor contract and a Non-Compete Agreement. The agreement stipulates that for 2 years following the termination or expiration of the labor contract, Plaintiff shall not work for any company in the same industry that competes with Defendant. In return, Defendant agrees to pay Plaintiff a monthly non-compete compensation equal to 30% of their pre-termination monthly salary, payable on a monthly basis. On 2024/6/30, the labor contract expired and was terminated. After leaving, Plaintiff strictly adhered to the non-compete obligations and did not take employment with any competing companies. However, Defendant failed to pay the agreed non-compete compensation after Plaintiff's departure. Despite multiple requests, no payment was made. Plaintiff now sues, requesting Defendant to pay non-compete compensation totaling 21600 yuan for the period from 2024/7/1 to 2024/12/31.

Key Dispute

1.Is the Non-Compete Agreement signed by both parties legal and valid?

2.Has the plaintiff fulfilled their non-compete obligations?

3.Should the defendant pay the plaintiff economic compensation for the non-compete restriction?

4.Do the plaintiff's claimed calculation base and amount for economic compensation comply with legal requirements?

Case Strategy

1.Fixed-term written labor contracts, non-compete agreements, payroll records, separation certificates, plaintiff's employment history, and communication records between both parties as core evidence.

2.Produce evidence that the Non-Compete Agreement signed by both parties reflects their true intent, does not violate mandatory provisions of laws or administrative regulations, is legally valid, and that both parties must fully perform their obligations under the agreement.

3.Prove that the plaintiff strictly complied with the non-compete obligations after leaving employment and did not work for any company in the same industry that competes with the defendant.

4.Prove that the defendant failed to pay the non-compete compensation to the plaintiff on a monthly basis after their resignation as agreed in the agreement, thereby breaching the contract and should bear liability for continued performance.

5.The court calculates the non-compete compensation claimed by the plaintiff as follows: The plaintiff's monthly salary prior to termination was 12000 yuan. At a rate of 30%, the monthly compensation amounts to 3600 yuan, totaling 21600 yuan over 6 months. This complies with the agreement and applicable laws.

Processing Result

The court ruled that the defendant, a certain technology company in Fujian Province, shall pay the plaintiff, Li Mou, non-compete compensation of 21600 yuan for the period from 2024/7/1 to 2024/12/31, within ten days from the effective date of this judgment. The defendant shall bear all litigation costs for this case.

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