The importance of a set of well-drafted post-termination restrictive covenants
Movement of talent is common in Hong Kong and often without notice. A set of bespoke, well-drafted post-termination restrictive covenants can protect an employer’s legitimate business interests and deter breaches by employees and competitors alike. However, what should a well-drafted restrictive covenant look like? Hong Kong Courts are often reluctant to uphold non-compete provisions. The position in Hong Kong, as in many common law jurisdictions, is that covenants in restraint of trade are unenforceable unless they can be shown to be reasonable between the parties and in the public interest. In such case, what can an employer do to protect its interests?
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