DetailsEmployers and employees may stipulate such issues as keeping confidential the business secrets and intellectual property of the employer in the employment contract.
With respect to an employee who has the obligation of keeping secrets, the employer may stipulate limitation of competition and confidentiality agreement in the employment contract. However, economic compensations shall be given to the employee within the period of limitation of competition in terms of months after the employment contract is discharged or terminated. Where the employee is in violation of the stipulation on limitation of competition, he shall pay a penalty for breach of contract to the employer.
The personnel under limitation of competition shall be limited to senior managers, senior technicians and other personnel who have the obligation to keep secrets in the company. The range, geographical scope and time limit for limitation of competition shall be stipulated by both the employer and the employee. The stipulation relating to limitation of competition shall not violate any laws or regulations.
After the discharge or termination of the employment contract, the period of limitation of competition for any of the persons referred to in the preceding paragraph to work for any other employer producing or engaging in products of the same category or conducting business of the same category as this employer shall not be more than two years.