After graduating from a Shanghai university in 2022, self-described introvert Yao joined the grocery operations of the city’s fastest-rising tech giant, Pinduoduo. A year later, he found himself losing his hair, one sign of the stress of his entry-level job, and decided to find work elsewhere. Soon after leaving, he was put under surveillance by Pinduoduo. A subsequent labour arbitration case means he now owes the Chinese tech giant around double the amount he earned during his year of working there.
Yao is one of at least a dozen former Pinduoduo employees who have found themselves trapped by non-compete agreements they claim they were required to sign. Chinese labour lawyers say some domestic tech companies have turned to abusing such contracts to discourage even the lowest level employees from leaving for rivals.
Through interviews and court records, the Financial Times has reviewed 10 ex-employees’ cases. They suggest Pinduoduo has repeatedly used surveillance on former workers who leave for rivals and then lawsuits to enforce non-competes and stifle competition. Many of the cases involve low-level employees. Some like Yao were just recent university graduates.