To reflect the newly-amended legal requirements on non-competition agreements between employers and employees under the Labor Standards Act, the Ministry of Labor announced the draft enforcement rules on February 4, 2016.  Major provisions include: (1) non-competition agreements shall be in writing and shall specify the time limit, the geographic area, the potential employers to which the non-competition agreement applies, and a reasonable compensation for entering into the non-competition agreement; (2) the geographic area specified by the non-competition agreement shall be limited to the geographic area in which the employer party to the non-competition agreement has real business activity; the potential employers to which the non-competition agreement applies shall be limited to those entities conducting identical or similar businesses and having a competitive relationship with the employer party; and (3) the compensation for entering into the non-competition agreement shall be paid in a lump sum or in monthly installments.  As to whether the compensation is reasonable, the totality of the circumstances should be considered, including whether the monthly compensation is higher than one-half of the average monthly wage prior to leaving employment, whether the compensation is enough to meet the living needs during the period of non-competition or to compensate for the employee’s loss.