HONG KONG: ARE PAID NON-COMPETE PERIODS WORTH THE EXPENSE?

In a recent decision of the Hong Kong High Court[1], a six month non-compete restriction was upheld against an employee. One way that this decision differs from other recent cases was that the employee was entitled to receive his usual salary for the entire non-compete period. In considering the balance of convenience, not only did … Read more

It still counts: Hong Kong Court finds minority shareholding has reasonable possibility to benefit winding-up petitioner

It is well-established that certain core jurisdictional requirements must normally be met before a Hong Kong Court will exercise its discretion to wind up a foreign company (Core Jurisdictional Requirements). These were explained in our previous post: there must be a sufficient connection with Hong Kong, but this does not necessarily have to consist in … Read more

HONG KONG SAFETY SNAPSHOTS: MANAGING AN EMPLOYEE’S RETURN TO WORK

As discussed in a previous Snapshot, when employees are absent from work due to injury or illness, it can also significantly impact business operations. Following an employee’s prolonged absence, the next challenge is to ensure a successful transition back to work. This Safety Snapshot highlights the key considerations for employers in balancing their legal duties, … Read more

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

Rules of Online Litigation of the People’s Court of China launched

The Supreme People’s Court of China (SPC) has recently released Rules of Online Litigation of the People’s Court of China (Rules). The Rules are judicial interpretations formulated by the SPC binding on courts in Mainland China and will come into effect on 1 August 2021. Background As the digital economy in China continues to grow, … Read more