According to Article 22 of the Labor Contract Law of the People's Republic of China, if an employer provides specialized funding for an employee's professional training, the employer may sign an agreement with the employee specifying a required service period.

If the employee resigns before the end of the agreed service period, he or she shall pay liquidated damages to the employer as specified in the agreement.

Under the law, the amount of the liquidated damages must not exceed the training expenses paid by the employer. Additionally, the liquidated damages claimed by the employer shall not exceed the portion of the training expenses that should be apportioned to the unperformed part of the service period.

An agreement on the service period between the employer and the employee does not affect the raising of the employee's remuneration during the service period.

Article 22 stipulates that an employer and an employee may include provisions in their employment contract regarding confidentiality – specifically related to the protection of the employer's trade secrets and intellectual property.

For employees with confidentiality obligations, the employer may stipulate non-compete clauses in the employment contract or confidentiality agreement with the employee, and agree to provide the employee with monthly economic compensation during the non-compete period after the termination of the employment contract.

If the employee breaches the non-complete clauses, he or she shall pay liquidated damages to the employer as agreed.

Article 25 stipulates that, except for the circumstances outlined in Articles 22 and 23, employers shall not agree to impose liquidated damages on employees.

Therefore, employers may agree with employees on liquidated damages and employees shall pay the damages if they violate the agreement.

Source: Official WeChat account of the Ministry of Human Resources and Social Security of the People's Republic of China