Post-termination Restrictions In Employment Contracts

Appropriate and reasonable post termination restrictions ("PTRs") in employment contracts are an effective way to restrict the post-termination activities of a departing employee with the aim of protecting the employer's business.

The Court will not fashion relief to an ex-employer who has not troubled to incorporate PTRs in the employment contract to protect its business interests.

It follows that if an employer is concerned over the post-termination activities of its employees, it should consider whether to incorporate PTRs in its employment contracts. Courts in Hong Kong have readily enforced PTRs for the benefit of ex-employers so long as it can be shown that the PTRs in question are (a) reasonable in the interests of the contracting parties and (b) reasonable in the interests of the public.