This article examines the potential claims and liabilities a recruiting employer may face on hiring an employee who is subject to enforceable post-termination restrictions (PTRs), the provisions of a contract which restrict the activities of a former employee following the termination of their contract in Hong Kong.
It highlights claims that a former employer could potentially bring against a new employer in connection with their involvement in potentially wrongful conduct by the newly hired employee, including: inducement of breach of contract, causing loss by unlawful means, and conspiracy. To reduce the likelihood of such claims, new employers must do their due diligence to understand the meaning of PTRs, the interests PTRs seek to protect, and the reasonableness of PTRs with respect to the interests they seek to protect.
Authors: Nick Gall, Senior Partner, Andrea Randall, Partner, and Kritika Sethia, Legal Analyst, Gall