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Spotlight on News
- Ministry of Human Resources and Social Security issued the Opinions on Several Issues Concerning the Implementation of the Regulations on Work-Related Injury Insurance (No. 3).
- Xuhui District People's Court of Shanghai released judicial white paper on non-compete disputes with five typical cases.
Legislation Updates
- The Cybersecurity Law of the People's Republic of China has undergone its first revision, enhancing the legal framework for cybersecurity regulation.
- Jiangsu Province issued the work capacity assessment regulations to ensure alignment with national policies.
Case Study
- Supreme Court Guideline Case holds that employees backing up trade secrets upon resignation constitutes infringement, and reasonable confidentiality costs incurred to mitigate losses are recoverable.
- Beijing No.2 Intermediate Court holds that employers shall compensate employees for the value of unvested stock awards forfeited as a result of wrongful termination.
Spotlight on News
1. Ministry of Human Resources and Social Security issued the Opinions on Several Issues Concerning the Implementation of the Regulations on Work-Related Injury Insurance (No. 3).
On November 13, 2025, the Ministry of Human Resources and Social Security issued the Opinions on Several Issues Concerning the Implementation of the Regulations on Work-Related Injury Insurance (No. 3) (hereinafter referred to as the "Opinions (No. 3)"), which clarified several frequently contested issues in the implementation of the WorkRelated Injury Insurance Regulations (hereinafter referred to as the "Regulations") in practice.
Specifically, the Opinions (No. 3) elaborate on the core elements for identifying work-related injuries-namely, "work hours, work location, and work-related causes"-by establishing detailed criteria that go beyond the general provisions in Article 14 of the Regulations. In addition, the document defines "commuting" as travel between an employee's residence and workplace for work purposes within a reasonable time and route, and illustrates four common scenarios to help assess reasonableness.
Moreover, the Opinions (No. 3) specify that if an employee sustains a medical injury during follow-up treatment for a recognized work-related injury or occupational disease, the original injury determination shall remain valid. However, any additional medical costs or compensation arising directly from such medical incidents will not be covered by the work-related injury insurance fund.
The Opinions(No. 3) state that injuries occurred while working remotely due to work-related causes shall be recognized as work-related injuries. Similarly, sudden illnesses may also be deemed work-related if the employee was performing tasks as required by the employer, with work intensity comparable to regular working hours, during periods typically regarded as rest time.
With regard to traffic accidents, recognition as a work-related injury requires supporting evidence from traffic police authorities or an effective court ruling confirming that the employee was not primarily at fault. Otherwise, without such proof, the incident will not be recognized as a work-related injury. Finally, regarding fatal work injuries, the time of death should generally be determined based on the medical death certificate issued by a healthcare institution or, if unavailable, a death certificate issued by public security authorities-unless there is compelling evidence to support an alternative time of death.
2. Xuhui District People's Court of Shanghai released judicial white paper on non-compete disputes with five typical cases.
On November 20, 2025, Xuhui District People's Court of Shanghai held a press conference for the release of the Judicial White Paper on Non-Compete Disputes (2020-2024) (hereinafter referred to as the "White Paper") and reported on the Court's recent adjudication work concerning non-compete disputes.
The White Paper reveals that the court handled 105 non-compete disputes over the past five years, with case numbers rising annually. These cases typically involve high-salary and high-tech positions with substantial dispute amounts, and show a high breach determination rate given the concealed and diversified nature of competitive activities. The study further identifies underlying issues: misuse of non-compete agreements, improperly expanded restrictions limiting employees' career mobility, unbalanced damages and compensation increasing financial pressure on employees, and increasingly hidden violations complicating employers' burden of proof.
Through five representative cases, the White Paper illustrates the court's reasoning in issues such as defining applicable parties to non-compete agreements, detecting concealed competition, adjusting damages, to offer practical reference for resolving similar cases. For instance, in the case of Sun v. Company B, the court established that setting up a competing business before resignation constitutes a breach. In the case of Liu v. Company E, where an employee's salary and social insurance were handled by a third party while actually working for a competitor was also deemed a violation.
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