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by 33a
832 days ago
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In china an employer is required to pay something like 30% of your salary if it elects to enforce a non-compete. If the company doesn't pay you, then it's non-enforceable. Assuming you were at some decent compensation, this can actually be quite a bit of money. So if these workers took that pay cheque, they get to enjoy the timeoff during the non-compete and go party or start a family or whatever. The downside of the non-competes in China though is that because you are being paid to NOT work, if you start moonlighting or doing something sketchy the penalties are way more severe. I actually kind of like this approach to non-competes and it is in some ways better than how it works in many US states. https://goglobalgeo.com/blog/non-compete-clauses-in-china-re... The big problem with this system is not the penalties for breaking it, but the fact that it can sabotage you if you get hit too early in your career with a big gap. On the other hand, it gives you a nice opportunity to take a year or two off to start a family, spin up a new business or go back to school. |
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This guy was getting about $6k per year for his non compete, and has been sued for $60k. This has effectively destroyed the prospects of this guy’s entire life. He couldn’t mentally endure what they were demanding, and then they gave him a non living wage while simultaneously forbidding him from finding employment.