China Law Answers Answers to the legal questions related to china

August 23, 2005

Am I allowed to work for another company that is involved in a similar business after layoff?

Filed under: China Law — Tags: , , — china @ 1:36 am
china law
Johny W asked:

k… I work as an engineer in Canada for a company in China. they sent me a contract and one of the restrictions states that after they terminate my emloyment, I cannot work for another company that is wholly or partially in competition with the company. Is that valid in law? and do i follow the law of China or Canada regarding this contract?

DaCare Legal Recruitment

7 Comments »

  1. I don’t think Chinese laws apply in Canada. And besides, how would they know who you went to work for?

    Comment by Non-Redneck — August 23, 2005 @ 4:00 am

  2. As an engineer, you are probably privy to trade secrets. Why did you sign a contract you had no intention of honoring?

    Comment by RK — August 25, 2005 @ 3:00 pm

  3. It gets iffy. The reason you got that contract was so that you couldn’t use intellectual assets that you learned to benefit the other company. So if you do take a job with a competing company, you’ll have to be aware of how you apply your experience from the previous one to cover you own hind.

    Comment by Disgruntled — August 28, 2005 @ 4:37 pm

  4. I dont think that is valid by law unless its in your contract which you signed it in which case you should consult a lawer. for more information and to get an answer which is 100% correct as you dont want to end up in jail.

    Comment by always right — August 31, 2005 @ 9:24 am

  5. Non- compete clauses are common and can be enforced. The contract they gave you was PROBABLY valid in Canada. You should speak with an attorney about this. Was there a time limit on the restriction? I don’t think they can ban you forever.

    Comment by aneurodoc125 — September 1, 2005 @ 9:24 am

  6. It is unethical to leave a company and work for a competitor. In general, it is one of those things that is frowned upon, yet not necessarily illegal. However, it is illegal for you to use proprietary information about your previous company to help your new company. The specifics about exactly what you can or can’t do are in a gray area, but if you signed an actual contract stating that you wouldn’t, then yes, I think it would be a illegal. It also won’t look good in the future if you are applying somewhere else and they see that you worked for competing companies.

    Comment by engineergirl — September 1, 2005 @ 12:04 pm

  7. Look at the contract and find the length of time you cannot work for a competitor. Non-compete clauses are normal and legal. Most are 18 months to 2 years. You could be sued if they find you violating the contract.

    Comment by sensible_man — September 3, 2005 @ 7:23 am

RSS feed for comments on this post. TrackBack URL

Leave a comment

Powered by WordPress