Germany: Employers can dismiss employees with shares in competitors

Under German law, an employee having a major influence on a competing company can justify a termination for good cause with immediate effect of an employee. In a recent judgement in April 2017, the Higher Regional Labour Court of Schleswig Holstein decided that holding 50% of the shares in a competing company without obtaining prior … Read more

Hong Kong: Who owns employees’ work product?

The law recognises that employees may create valuable intellectual property during their employment, ownership of which should ordinarily rest with their employer. The recent case of Acron International Technology Ltd v Chan Yiu Wai [2017] 3 HKLRD 799 demonstrates how the law can protect an employer’s rights in respect of such intellectual property from misappropriation … Read more

Asia: Post-employment covenants

Although often included in employment contracts, the enforceability of post-employment non-competition obligations can vary greatly from jurisdiction to jurisdiction. Read more

UK: Restrictive covenants – non-competes should not prevent minority shareholdings; non-solicits should usually only apply to individuals with whom the employee dealt

Employers should check that their template restrictive covenants prohibiting being directly or indirectly engaged or ‘concerned’ or ‘interested in’ competing businesses expressly carve out and permit minor shareholdings. The Court of Appeal has overruled a High Court decision in Egon Zehnder Ltd v Tillman, finding that the phrase “concerned or interested in” was unambiguous in … Read more