Wendy Zhang/ Shanghai Daily news

The penalty that university graduates must pay for breaking employment agreements must not exceed their monthly salaries, said a spokesman with the Shanghai Educational Commission, as cited in today's Shanghai Morning Post.
This year's employment agreement, a key certificate signed between new university graduates and employers before the formal labor contract, will be issued to the graduates as of next week. Compared with previous agreements, the new one sets an upper limit equal to a student's monthly salary as a fine for breaching it.
Previously, the penalty was decided by employers, usually ranging from several thousand yuan to tens of thousands of yuan.
University graduates should carefully study each item in the agreement to protect their legal rights, an educational expert suggested.