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In practice, it is common for companies to have a registered address and another actual business address. The reasons are various, such as, a company has been relocated, but it forgot to change the registered address in time; or a company sets its registered address in a specific district for special preferential policies, and sets another actual business address in…

Many companies have signed a Non-competition Restrictive Covenant (the “NCRC”) with employees. However, the issues related to the economic compensation have been ignored in many cases, due to which many disputes arise. This article is aimed to sort out the relevant common misunderstandings and consequences for companies’ reference. Misunderstanding No.1: There is no agreed amount of the economic compensation. Analysis:…

A Japanese Company M appointed Mr. A to serve as the head of the R&D department of its subsidiary in China. Just few months later, Mr. A created a significant invention. Company M and its subsidiary had different opinions on the ownership of this invention, the amount of the remuneration, and the payer. Article 6 of the “Patent Law” stipulates…

In August 2020, a bank employee released a real-name statement on Weibo, claiming that he had suffered long-term mental torture from his leader, such as, he was ordered to stay at the pantry next to the elevator for three consecutive months, and he could only go out for dinner and go to the bathroom during working hours; if he disobeyed…

Both “Contract Law” (repeal on 1 Jan. 2021) and “Civil Code” (effective from 1 Jan. 2021) stipulate that either the commissioning party or the commissioned party may terminate the commission contract at any time, which is the right of termination without any reason. “The law stipulates either party could terminate the commission contract at any time, because the foundation of…

Article 3 of the "Labor Contract Law" stipulates that the conclusion of a labor contract shall follow the principle of good faith. Furthermore, Article 26 stipulates that a labor contract which is concluded by use of fraudulence is invalid. The above-mentioned provisions are the main legal basis for the application of the principle of good faith in employment. However, if…

In recent years, the revised "Trademark Law", "Copyright Law", and "Patent Law" have added punitive damages clauses and raised the upper limit of statutory damages. However, the guidance on applying punitive damages clauses is not clear. On March 2, 2021, the Supreme People's Court issued the "Interpretation of Supreme People's Court on the Application of Punitive Damages in Hearing Civil…

Compared with the previous “Guarantee Law” and the relevant judicial interpretations, the “Civil Code” which came into force on Jan. 1, 2021 has amended the guarantee term. According to the “Civil Code”, where there is no agreement in the contract between the creditor and the guarantor on the guarantee term or such agreement is unclear, the guarantee term shall be…

When you read this title, you may have two reactions: (a) employees who are addicted to smoking think this is too harsh; (b) other employees who are the victims of “second-hand smoke" take it as a good idea, because it can prohibit more people from smoking in the working place. Which one is the right answer? Let’s see. The first…

“X Sports Franchise Store” is an online store which has the authorization of a well-known brand H Racket. The store purchased some counterfeit rackets at low prices, and mixed those fakes with the real ones. H Racket found the store had sold fakes, so it terminated the authorization. However, some consumers believes that H Racket’s authorization is the reason for…