|
Companies may claim economic damage caused by employees when they breach rules, which revokes his labor contract.24 However, PRC law has not any particular article applying to this situation. What is the standard of compensation for employees’ breach labor contract? Companies have to face challenges, where they should clearly make detail of standard and definition about employees’ breach contract, otherwise they will lose compensatory rights in this situation and also employees do not pay any penalty fee.
Trade secrets and employment restriction are not duties of employee legally, so foreign company must form the agreement with employee about this problem in advance.
Trade secrets are the important parts of Intellectual Property Rights, and also are intangible assets of corporation, having significant effect for companies at business market. According to Labor Law 25 and Regulations,26 companies may claim trade security rights. However, employee has not duty of keeping trade secrets while employment contract is signed, unless following conditions will be met. Firstly, relevant article shows up in labor contract. Secondly, the article not only defines duty of employee keeping trade secrets, but also define standard of compensation for employee who should response to duty of keeping secrets, otherwise, companies are hardly protected.
Restriction of employment can protect trade secrets in working process, defining that current employees should take the responsibility of keeping the business secrets, which they could lawfully received some amount of money.27 Such regulations are clearly illustrated in Chinese Corporate Law 28 and relevant definitions of Labor Department.29 However, standard of payment is not decided yet, which needs companies to start negotiating with employees while contract is forming and to clarify the responsibility of breach.
Establishing labor record handbook is for evaluation of employee and testimony of law.
Handbook records working process behavior and welfare of employees and can not changed at any time. So company should make a perfect labor record handbook before employment based on own practical situation. When labor dispute happened, then labor record handbook is the best proof for rights of company. Labor record handbook includes working hours, holiday standard, overtime working, sick leave rules, medical care, working security, duty of position, and so on. Finally, statement should be shown that this handbook has been adopted on the meeting of employee delegates by legal process, which means that this handbook becomes a part of labor contract.
|
