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HK Proposes Changes to the “continuous Contract” Rule Under Employment Ordinance

The Hong Kong Government has proposed to change the “continuous contract” requirement under the Employment Ordinance (Cap 57) (“EO”) from the current “4-18” requirement to a more relaxed “4-17” or “4-68” requirement....more

HK Court Rules That Gig Delivery Driver Was Not an Employee

With the continued prevalence of the “gig economy”, a common question that arises is whether “gig workers” are employees or independent contractors of the digital platform. ...more

HK High Court Refuses to Enforce a 12-month Worldwide Non-compete Covenant

In Manulife Financial Asia Limited and Kenneth Joseph Rappold & Others [2024] HKCFI 989 (date of decision: 5 April 2024), the Hong Kong High Court refused a company’s application to enforce a 12-month non-compete clause...more

Implied duty of mutual trust and confidence and employers’ right to terminate

In Hong Kong, an implied duty of mutual trust and confidence (“Duty”) exists between an employer and an employee. This duty requires that an employer shall not “without reasonable and proper cause, conduct itself in a manner...more

HK Court of Appeal confirmed modern test on penalties in the employment context

In the recent important decision of Law Ting Pong Secondary School v Chen Wai Wah [2021] CA 873, the Hong Kong Court of Appeal adopted the modern test for penalty clauses as laid down in the UK Supreme Court decision in...more

Timberbrook v Grant Leisure: staged payments, variations and termination clause

The recent English case of Timberbrook Ltd v Grant Leisure Group Ltd [2021] EWHC 1905 (TCC) (Date of Judgement: 16 July 2021), which was heard in the Technology and Construction Court, is a good illustration of the factors...more

Employers’ power to suspend employees under HK law

In Lengler Werner v. Hong Kong Express Airways Limited [2021] HKCFI 1333, the Court of First Instance (the “Court”) examined the power of “suspension” of an employee, including under section 11 of the Employment Ordinance...more

HK Court upholds entitlement to guaranteed bonus and disallows employer set off

In the case of Xu Yi Jun v GF Capital (Hong Kong) Limited (CACV 502 & 577 / 2019) (Date of Judgment: 6 August 2020), the Hong Kong Court of Appeal (the “Court”) considered (i) the employee’s entitlement to a guaranteed bonus...more

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