A court in Shanghai has ordered a property management company to pay a former employee, Liu, 690,000 yuan after ruling that her dismissal over her husband's alleged links to a rival company was illegal. Liu had worked with the company since 2006 before being terminated in late 2023, with the company claiming her marriage created a conflict of interest and could harm the business.

According to court documents, Liu filed a labour arbitration complaint seeking compensation, which was largely ruled in her favour, ordering the company to pay 680,000 yuan in compensation along with 10,000 yuan for untaken leave.

The company challenged the decision in court, arguing that Liu had access to sensitive company data and confidential information, but the Xuhui District People's Court found no evidence of misconduct and ruled that her dismissal was unreasonable under China's Labour Contract Law.

The court noted that non-compete clauses apply only to senior executives or employees with formal confidentiality obligations, and that such agreements must be signed in writing beforehand, and since Liu was neither a senior executive nor bound by a non-compete agreement, her dismissal was deemed illegal.

The court's decision is final, and the company is expected to comply with the order to pay Liu the compensation, with the case serving as a precedent for similar disputes in the future, and Liu's lawyer is expected to comment on the case in the coming days.