- By Ajeet Kumar
- Sun, 10 May 2026 11:24 AM (IST)
- Source:JND
- Chinese court ruled employee firing illegal.
- Company ordered to pay 690,000 yuan compensation.
- Non-compete rules not applicable to employee.
A court in China has ordered a property management company to pay compensation to a former employee after ruling that her firing was illegal. According to a report by The South China Morning Post, the woman, surnamed Liu, had worked at a Shanghai company since 2006 before she was suddenly dismissed at the end of 2023.
The company claimed Liu’s husband worked as the general manager of a rival firm and said the relationship could negatively affect its business. Because Liu worked as an operations manager, the company argued that she might leak “confidential information”.
Husband not actually employed by the rival compan
However, Liu denied the accusations. She said she did not have access to important company secrets and only had a supporting role at work. She also said her husband was not actually employed by the rival company, even though he introduced himself that way during industry events.
After losing her job, Liu filed a complaint asking for compensation for unfair dismissal, unpaid bonus money, and unused leave days. A labour arbitration committee supported her claim and ordered the company to pay around 6,90,000 yuan (Rs 95,85,417) in compensation.
The company later challenged the decision in court, but the Xuhui District People’s Court agreed with the earlier ruling.
Court orders in favour of woman
The court said the company failed to prove that Liu or her husband had damaged its business or shared confidential information. Judges also explained that under Chinese labour law, non-compete rules only apply to senior executives, technical experts, or workers who sign special confidentiality agreements. Liu did not belong to any of these categories.
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The case has sparked debate online in China. Some people supported the court’s decision and said employers should not interfere in workers’ family lives. Others believed the company’s concerns about possible business risks were understandable.
The ruling highlights growing tensions in China’s competitive workplace culture, where companies are becoming increasingly worried about business secrets and employee loyalty.