Hong Kong: Recovering money from delinquent employees

Employers can suffer significant financial and reputational damage from the actions of their employees. While dismissal with or without notice is the most common recourse for serious misconduct or negligence, increasingly employers are looking to take stronger action by recovering their losses from employees guilty of wrongdoing. An employer did just that in a recent … Read more

Hong Kong: Disciplinary Procedures & Privilege

Two recent English decisions highlight the particular challenges when managing legal professional privilege in the context of resolving employee issues. We consider these decisions and how the principles may apply in Hong Kong in relation to dominant purpose, waiver and iniquity and the lessons that they provide to employers in the context of employee investigations … Read more

UK: ‘bad leaver’ provision triggered by resignation was not a penalty

The Employment Appeal Tribunal has ruled that ‘Bad Leaver’ provisions in Articles of Association requiring forfeiture of shares were not subject to the law on penalty clauses where triggered by an employee voluntarily resigning on notice, as repayment did not arise on a breach of contract. The fact that the employee had separately contracted not … Read more

UK: Government consultation on regulation of confidentiality clauses in settlement agreements and employment contracts

Further to its response to the Women and Equalities Select Committee report last December (see here), the Government is consulting until 29 April 2019 on proposals to regulate confidentiality clauses (commonly referred to as “NDAs” or non-disclosure agreements) in employment contracts and settlement agreements.  The Government has rejected calls to ban the use of such … Read more