A technology company (“the Company”) and one of its employees executed a Non-Competition Agreement, by which the employee agreed to perform the duties of non-competition for 1 year and the Company agreed to pay the employee monetary compensation, totaling around 300,000 RMB. Further, the Agreement provided that the employee would be liable to pay liquidated damages to the Company in the amount equal to three times the total amount of compensation that the Company agreed to pay to the employee for breach of contract. After the employee resigned from the Company, he entered into a new employment relationship with a competitive technology company, for which the employee breached the Agreement. The Company applied for arbitration and the labor arbitration commission reached a verdict requesting that the employee return the compensation that he received from the employer and pay liquidated damages amounting 610,000 RMB to the Company, which was less than the amount of liquidated damages agreed in the Non-Competition Agreement. This case indicates that the labor arbitration commissions may exercise their discretion to adjust the amount of liquidated damages even if the Non-Competition Agreement has provided the amount of liquidated damages for breach of contract.