PDD’s Use of Non-Compete Clause Called Into Question

PDD Holdings Inc.’s aggressive enforcement of non-compete agreements in employee contracts has sparked accusations it is abusing the clause, with former staff of the Chinese e-commerce giant telling Caixin they have been sued for hundreds of thousands of yuan despite them only holding junior positions.

Former employee Lu Zhi said she joined PDD in July 2022 and left in March 2023 and during her eight-month stint at the company, she earned a total of 76,000 yuan ($10,560). However, she was subject to a non-compete period of nine months, during which PDD offered her 14,000 yuan, she said.