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Non Compete Employment Contract for Hong Kong

Non Compete Employment Contract Template for Hong Kong

This document is a comprehensive employment agreement incorporating non-compete provisions, designed to comply with Hong Kong employment law and common law principles. It establishes post-employment restrictions on competitive activities while ensuring enforceability under Hong Kong's legal framework. The agreement balances the employer's legitimate business interests with reasonable limitations on the employee's post-employment activities, specifically addressing scope, duration, and geographical restrictions in accordance with Hong Kong court precedents and statutory requirements.

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Non Compete Employment Contract

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What is a Non Compete Employment Contract?

This Non-Compete Employment Contract is designed for use in Hong Kong employment relationships where protecting business interests is crucial. It combines standard employment terms with robust non-compete provisions that comply with Hong Kong's common law requirements for reasonableness and enforceability. The document is particularly relevant for senior employees, those with access to confidential information, or roles involving significant client relationships. It includes detailed provisions on restricted activities, geographical limitations, and time periods, while incorporating necessary considerations for Hong Kong's dynamic business environment and legal framework. The agreement is structured to protect legitimate business interests while remaining enforceable under Hong Kong law's scrutiny of restraint of trade provisions.

What sections should be included in a Non Compete Employment Contract?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including 'Confidential Information', 'Restricted Business', 'Restricted Period', and 'Restricted Territory'

4. Employment Terms: Basic terms of employment including position, duties, and reporting structure

5. Non-Compete Obligations: Core restrictions during and after employment, including scope, duration, and geographical limitations

6. Non-Solicitation: Restrictions on soliciting employees, customers, or suppliers

7. Confidentiality: Obligations regarding confidential information and trade secrets

8. Consideration: Specific consideration provided for the non-compete obligations

9. Garden Leave: Provisions for garden leave during notice period

10. Acknowledgments: Employee's acknowledgment of reasonableness of restrictions

11. Remedies: Available remedies in case of breach, including injunctive relief

12. Governing Law and Jurisdiction: Specification of Hong Kong law and courts' jurisdiction

13. General Provisions: Standard boilerplate clauses including severability and entire agreement

What sections are optional to include in a Non Compete Employment Contract?

1. International Travel: For roles requiring travel outside Hong Kong

2. Intellectual Property: For roles involving creation of IP or technical innovations

3. Commission Structure: For sales or commission-based positions

4. Post-termination Compensation: When specific compensation is offered during non-compete period

5. Group Company Provisions: When restrictions need to extend to related group companies

6. Data Protection: Enhanced data protection provisions for roles handling sensitive information

7. Training Obligations: For roles requiring specific training investments by the employer

What schedules should be included in a Non Compete Employment Contract?

1. Schedule 1 - Position Description: Detailed description of employee's role and responsibilities

2. Schedule 2 - Restricted Territory: Specific geographical areas covered by non-compete restrictions

3. Schedule 3 - Compensation Details: Breakdown of salary, benefits, and any non-compete compensation

4. Schedule 4 - Restricted Businesses: List of specific competitors or business types covered by restrictions

5. Appendix A - Confidential Information: Categories and examples of confidential information

6. Appendix B - Company Policies: Reference to relevant company policies affecting the non-compete obligations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions




























Clauses

































Relevant Industries

Financial Services

Technology

Professional Services

Manufacturing

Retail and Consumer

Healthcare and Pharmaceuticals

Telecommunications

Real Estate and Property Development

Insurance

Trading and Distribution

Consulting

Media and Entertainment

Relevant Teams

Legal

Executive Leadership

Sales

Research and Development

Product Development

Client Services

Operations

Information Technology

Business Development

Investment

Human Resources

Strategy

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Technology Officer

Sales Director

Account Manager

Senior Software Developer

Research Director

Regional Manager

Product Manager

Business Development Director

Senior Consultant

Investment Manager

Head of Operations

Technical Lead

Client Relationship Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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