Great leap forward: Hong Kong Court issues first letter of request under Mainland-Hong Kong arrangement for mutual recognition of insolvency

In another leap forward for cross-border insolvency cooperation between Hong Kong and Mainland China, the Hong Kong Court has issued its very first letter of request to a Mainland Court requesting recognition and assistance of Hong Kong liquidators under the new arrangement for mutual recognition of and assistance to insolvency proceedings introduced on 14 May … Read more

HONG KONG SAFETY SNAPSHOTS: MANAGING EMPLOYEE MENTAL HEALTH

For some time, we’ve seen a gradual increase in employee mental health issues in the workplace and the events of last year have accelerated this. A survey conducted by the Mental Health Association of Hong Kong together with Tung Wah College released in June 2021 found that over 60% of Hong Kong employees interviewed, suffered … Read more

Hong Kong Court of Appeal embraces modern test for penalty clauses following UK Supreme Court in Cavendish when considering employer’s right to enforce termination notice provision

In a notable judgment (Law Ting Pong Secondary School v Chen Wai Wah [2021] CA 873), the Hong Kong Court of Appeal (CA) has adopted the modern approach to penalty clauses handed down in the UK Supreme Court in Cavendish Square Holding BV v Talal El Makdessi [2016] AC 1172. The recent appellate decision has … Read more

HR INVESTIGATION INSIGHTS: SUSPENSION OR ADMINISTRATIVE LEAVE?

Where there is an ongoing investigation into the alleged misconduct of an employee, the employer wish to suspend an employee’s duties until the investigation is concluded. In Lengler Werner v Hong Kong Express Airways Ltd [2021] HKCFI 1333, the Court of First Instance (CFI) clarified the scope of an employer’s right under the Employment Ordinance … Read more

KEY JUDGMENT ON ARBITRATION CLAUSES AFFECTING THOUSANDS OF COMMERCIAL CONTRACTS

Herbert Smith Freehills has secured an important victory in Hong Kong proceedings with far-reaching consequences for arbitration disputes around the world. Many commercial contracts contain “escalation clauses” requiring parties to take certain steps before formal arbitration begins – such as a requirement to “negotiate in good faith” before starting arbitration. Previously, failure to comply with … Read more

Two bites of the cherry? Res judicata and abuse of process

On 1 June 2021, the Hong Kong Court of First Instance handed down another lengthy Judgment in the long-running dispute among certain members of the prominent Lo family. On the applications of HSBC Trustee (the “Trustee“) and Dr KS Lo (“KS“), the Court struck out large portions (the “Offending Paragraphs“) of Mr Lu Lo (“Lu“)’s … Read more