An employer agrees to a clause in an employment contract requiring it to pay an employee two years’ salary if it terminates the employee’s employment within the first three years of the contract. Can that employer later terminate the employee and seek to avoid paying the two years’ salary by claiming that the clause is … Read more

In June 2022, the Ministry of Finance (“MOF”) and the Ministry of Housing and Urban-Rural Development (“MOHURD”) jointly released the “Circular on Improving the Methods for the Settlement of Construction Price”, which became effective on 1 August 2022. Mainland China has long regulated the proportion of the contract price in government projects, which must be … Read more

A recent Hong Kong Court of Appeal decision examined a creditor’s right to commence bankruptcy/insolvency proceedings where the petition debt arises from an agreement containing an exclusive jurisdiction clause in favour of a foreign court: Guy Kwok-Hung Lam v Tor Asia Credit Master Fund LP [2022] HKCA 1297. The Court of Appeal overturned the first … Read more

The Hong Kong District Court has provided a timely reminder to employers of the importance of ensuring that fair and proper processes are followed in the handling of sexual harassment complaints. In this case, a male employee accused by a co-worker of sexual harassment succeeded in arguing that his termination by the employer amounted to … Read more

In a recent Hong Kong District Court decision Chow Kai Yan v Kingsway Cars T Service Ltd [2022] HKDC 165, the Court confirmed that an employee who suffered a stroke at work had not sustained an “injury by accident” which would entitle him to statutory compensation under the Employees’ Compensation Ordinance (Cap.282) (ECO). This case … Read more

Construction disputes between contractors and employers in Thailand can take years to be resolved in court or arbitration. This can result in construction work being delayed and sometimes abandoned, and contractors facing financial difficulties. In response, Thailand is considering the introduction of a draft bill titled “Act on the Settlement of Disputes regarding Payment in … Read more

Last week, the Hong Kong Court struck out a fraudulent trading claim brought by the liquidators (the “Liquidators“) of China Metal Recycling (Holdings) Limited (“China Metal“) against one of its sponsors (the “Sponsor“) on the ground that it was brought as a High Court Writ action (the “Action“), in breach of the mandatory statutory requirement … Read more

Historically, the common law has only recognised foreign insolvency proceedings commenced in the jurisdiction in which the company is incorporated. This may no longer be the case in Hong Kong. Going forward, a Hong Kong court will now recognise foreign insolvency proceedings in the jurisdiction of the company’s “centre of main interests” (COMI). Indeed, it … Read more