Internet giant contract controversy
How PDD uses anti-compete clauses to intimidate junior employees
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This is one of biggest business news stories people in China are talking about this week.
But no, it’s not “the five top takeaways for business from the Two Sessions.”
It’s about a company you probably haven’t heard of, or don’t know much about.
The company is Pinduoduo (拼多多 pīnduōduō), or PDD.
PDD a huge online retailer in China with a focus on traditional agricultural products.
It’s listed on the New York Stock Exchange (PDD Holdings Inc), and according to the FT, regularly competes with Alibaba as the most valuable Chinese company on that exchange.
The company is also the parent of Temu, the online shopping megastore which has aggressively “gone global” (出海) in recent months. According to my teenage daughter it’s “better and cheaper than Amazon.”
Controversy surrounds PDD in China because of allegations about its negative corporate culture, and poor working conditions.
According to reports of some of its employees, working at PDD is grim. The firm’s default working hours are known as "11116" (starting work at 11am, finishing at 11pm, 6 days a week).
This week, former employees of the internet giant are taking to social media to vent their frustrations.
They are being sued by PDD, accused of violating the non-compete agreement in their contracts.
Non-compete agreements (竞业协议 jìngyè xiéyì) are common in China's competitive internet industry.
Intended to prevent commercially sensitive information leaking to competitors, non-compete agreements are usually applied to senior management, senior technical staff, and other personnel with confidentiality obligations (or “two highs and one secret” 两高一密).
But former junior employees of PDD allege the company is abusing non-compete agreements to intimidate them:
After signing a non-compete agreement when joining the company, many face claims for compensation from their former employer when they leave the company, including recent graduates with little work experience.
入职时签下竞业限制协议，离职后遭遇了公司高额索赔，其中不乏初出茅庐的应届生。[1]
Here we highlight the experiences of three former junior employees, which were shared on social media this week.
Lù Zhī 陆枝 worked for PDD for just 8 months in an entry-level position in 2023. She is accused by the company of joining a competitor within the restricted non-compete period.
She argues that non-compete provisions are so restrictive that leaving the company means having to move into another sector.
This type of restriction means that employees have to leave the industry if they want to resign.
此种限制范围，直接导致员工们要想离职，就只能离开这个行业。[2]
She is not alone.
Another is Chén Xīn 陈鑫:
In June 2023, when Chen Xin resigned, HR initiated the non-compete agreement citing that he “set a very bad example.” Chen Xin believed it was because there were too many resignations during that period, so HR wanted to cut employee turnover by “killing the chickens to warn the monkeys.”
2023年6月份，陈鑫提出离职时，hr却以“起了很坏的带头作用”为由，对其发起竞业。陈鑫猜测，是因为那段时间离职的人数过多，hr 想要“杀鸡儆猴”，降低员工的离职率。
Chen Xin had to pay PDD compensation equal to twice his annual pre-tax income, nearly 430,000 yuan ($60k), for violating his non-compete agreement. He jokingly referred to it as “ransom money” (赎身费 shúshēnfèi).
Another former employee accused of breaching her non-compete clause is Lín Zhīxīn 林知心:
In October 2023, Lin Zhixin received a call from Shanghai. It was an arbitrator who informed her on behalf of PDD, her former employer, that the company had filed a case against her for breaching her non-compete agreement, seeking a claim of 280,000 yuan ($39,000).
2023年10月，林知心收到了一通从上海拨来的电话。电话里，仲裁员告诉她，她曾工作过的拼多多公司，以违反竞业限制协议为由，对她发起仲裁申请，索赔28万。[1]
A recent graduate, she had only worked in a low-level position for 8 months, including a 6-month probation period. After leaving the company, she went on to work for a business engaged in foreign trade, completely different to her previous role in PDD's grocery shopping business.
It also transpired that Lin had been followed and secretly filmed. A 60-second video used as evidence in court to prove "Lin's employment with a competitor" showed her leaving home and entering her new employer’s office.
Discussions on social media and in legal circles in China point to how the non-compete clauses are vague, and confusing. Often junior employees don’t know what they are signing:
Page after page of A4 paper filled with text in a font size particularly small. "Both sides of the page are covered in words. Though there are not many pages, there are so many words to read." It’s only on resignation when people realise the existence of the non-compete agreement.
密密麻麻的文字，堆在一页页A4纸上，字体格外小，“正反两页都是字，看起来页数不多，但是字好多。”直到离职时，才意识到竞业协议的存在。[1]
So young employees of firms like PDD say they have three choices:
Continue enduring high-intensity work pressure
Pay a hefty non-compete penalty and resign
Or sacrifice their career prospects and completely leave the internet industry
In other words: No choice at all.
So that’s what we are exploring this week!
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There’s loads of extra phrases and insights into the language used to discuss this news story, including:
Why PDD is called “The Pizza Hut of Changning” (长宁必胜客) by internet users
How the classic novel, The Romance of the Three Kingdoms (三国演义), still has such a huge influence on modern Mandarin.
And our take on why all social media posts from former PDD employees about anti-compete agreements were censored.
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The Favourite Five
1. 熬 áo
to wait while enduring hardship
赵程宇全靠着“把股票熬到手”的信念，支撑着自己每天的工作 - Zhao Chengyu relies entirely on the conviction that "he will eventually get his company shares if he works for long enough" to get through the daily grind. [1]
2. 卖身契 mài shēn qì
bond
有人说，竞业协议就像“卖身契”，不签就不被录用，签了就没了“跳槽自由” - Some people say that the non-compete agreement is like a bond. If you don't sign, you won't be hired, but if you do, you'll lose your "freedom to change jobs". [4]
Background: As in the context of slavery
Related:
赎身费 shú shēn fèi - ransom fee
3. 人间蒸发 rén jiān zhēng fā
to vanish into thin air
赵程宇说，在公司内部，很多人默认离职后就得“人间蒸发” - Zhao Chengyu says that many employees assume that no one will hear anything about them after they leave the company. [1]
4. 杀鸡儆猴 shā jī jǐng hóu
kill the chickens to warn the monkeys
hr 想要“杀鸡儆猴”，降低员工的离职率 - The HR wanted to reduce the employee turnover rate by "killing the chickens to warn the monkeys". [1]
More: An idiom meaning "to make an example of one to warn others" which we explore in more depth tomorrow in the Sinica Phrase of the Week.
5. 周瑜打黄盖，一个愿打一个愿挨 zhōu yú dǎ huáng gài, yí ge yuàn dǎ yí ge yuàn āi
one is willing to give a beating while the other is willing to take a beating
竞业协议看似是“周瑜打黄盖，一个愿打一个愿挨”，但现实是很多员工往往陷入不得不签的窘境 - Non-compete agreements may seem like a situation of "Zhou Yu beating Huang Gai", where both sides are willing, but in reality, many employees often find themselves in a dilemma where they have no choice but to sign. [4]
Note: This is a Chinese pun, known as a 歇后语 in Chinese.
Background: A phrase from the classic novel, Romance of Three Kingdoms (三国演义). The story of Zhou Yu beating Huang Gai is one of deception, treachery, and a key turning point in the lead up to the Battle of Red Cliffs (赤壁之战), a decisive naval battle in the winter of AD 208–209 at the end of the Han dynasty in which Cao Cao's forces were sacked. Our editor, Zoe Qian, explains more about this in the podcast!
Consuming the Conversations
Useful words
6. 狰狞 zhēng níng
ferocious, menacing
然而，当世界开始紧缩，狰狞再次展露 - However, as the world begins to go downhill, those internet companies once again show their teeth. [1]
7. 枷锁 jiā suǒ
shackles
数十万、甚至上百万的索赔金，成为套住这些年轻人的又一道枷锁 - Claims amounting to hundreds of thousands, or even millions of yuan, become another set of shackles that trap these young people. [1]
8. 索赔 suǒ péi
claims, compensation
离职拼多多7个月后，林知心面临28万元的索赔 - 7 months after leaving Pinduoduo, Lin Zhixin faced a claim for compensation amounting to 280,000 yuan from her former employer. [1]
9. 忐忑 tǎn tè
anxious
这番话，让忐忑了一路的林知心终于松了口气 - These words finally relieved Lin Zhixin, who had felt anxious all the way. [1]
10. 惦记 diàn ji
to be on one's mind
他不知道自己提交的离职申请究竟走完流程没有，心里总是惦记 - He didn't know whether his resignation application has been approved, so he kept thinking about it. [1]
11. 威慑 wēi shè
deterrence
通过签署竞业协议的手段，限制人才对外流动，也对内部现有员工起着威慑作用 - Non-compete agreements aim to reduce the loss of talent to other companies and also serve as a deterrent to current employees. [1]
12. 口袋 kǒu dài
pocket, catch-all
最后的“一密”变成了一个越来越大的口袋，逐渐装进了绝大多数员工 - The final category of "employees who have access to confidential information" has increasingly turned into a catch-all term that fits the vast majority. [4]
Related: Pocket crime (口袋罪)
13. 埋雷 mái léi
set a trap
签了，可能给自己的职场生涯埋雷 - If they sign it, they are potentially setting a trap for themselves in their own career. [4]
Three-character phrases
14. 扛不住 káng bu zhù
unable to bear
有时实在扛不住了，才让自己在周日歇上一天 - Sometimes, when you really can't keep going, you then allow yourself to take a break on Sunday. [1]
Related:
背不动 bēi bu dòng – unable to bear (on one's back)
15. 铁了心 tiě le xīn
be determined
竞业限制对我最大的影响，就是让我铁了心不再在原来的行业工作了 - The biggest impact of non-compete agreements on me is that it made me determined not to work in the industry anymore. [3]
16. 广撒网 guǎng sǎ wǎng
to cast a wide net
用人单位需要出示足以证明劳动者接触过商业秘密的合法证据，而不是“广撒网” - Employers need to present legitimate evidence to prove that the employee has access to trade secrets, instead of just giving a vague definition. [3]
17. 挖墙脚 wā qiáng jiǎo
poach employees
竞业协议既保护了自身商业机密，也防止被友商“挖墙脚” - The non-compete clause not only protects their own trade secrets, but also prevents other companies from poaching their employees. [4]
Idioms
18. 初出茅庐 chū chū máo lú
inexperienced, to be at the beginning of one's career
离职后遭遇了公司高额索赔，其中不乏初出茅庐的应届生 - Many face high claims for compensation from their former employers when they leave the company, including recent graduates who have little work experience. [1]
Note: From Romance of the Three Kingdoms 三国演义 (茅庐 is where Zhu Geliang 诸葛亮 first resides)
Related:
涉世未深 shè shì wèi shēn - inexperienced, not having much experience in the world
19. 先声夺人 xiān shēng duó rén
preemptively gain the advantage
陈鑫前脚还没踏进门口，指责的话语就先声夺人 - Even before Chen Xin set foot inside, she already heard her manager tell her off. [1]
20. 捉襟见肘 zhuō jīn jiàn zhǒu
hard to make both ends meet, to be in a difficult situation
应届生林知心和陈鑫的诉讼之路则更显捉襟见肘 - The legal battle of recent graduates Lin Zhixin and Chen Xin appears to be even more difficult. [1]
21. 缓兵之计 huǎn bīng zhī jì
delaying tactics, stalling for time
如今想来，面对他们这群前员工，拼多多又何尝不是在以同样的“缓兵之计”对待 - Looking back now, Pinduoduo was also employing the same "delaying tactics" in dealing with this group of former employees. [1]
More: Also from the era of Cao Cao, in the Romance of the Three Kingdoms (三国演义).
22. 身心俱疲 shēn xīn jù pí
physically and mentally exhausted
他不知道其他人最后都是怎么处理这件事的，但自己身心俱疲 - He doesn't know how others dealt with this matter, but he is physically and mentally exhausted. [3]
Phrases
23. 颇有微词 pō yǒu wēi cí
have reservations
员工对于企业竞业限制协议的使用都颇有微词 - Most employees have reservations about the use of non-compete agreements by the company. [4]
24. 一亩三分地 yī mǔ sān fēn dì
one's own little world, a limited perspective
但所谓认识，也仅停留在每个人的一亩三分地上 - However, “getting to know" his colleagues only means to know what they are doing in the same business segment as him. [1]
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