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Non compete clause

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  1. #31

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    As the proprietor of a consultancy business I often include restrictive covenants in our employment contracts, primarily to prevent our consultants leaving and joining our clients directly, since in the construction / engineering business even the big boys are looking to cut out consultants and employee people directly to save a few dollars in HK. I know that, in general, these are enforceable in HK Courts as long as they are not too long in duration or too broad in coverage (ours often mention specific organisations and roles).

    Having said that unless you are taking a large amount of business from your old employer to your new employer or poaching all of their staff, most employers understand that enforceability has its challenges and unless they have massive resources.

    Finally, having been employed until around 6 years ago my personal and anecdotal experience is that much of what HR tells you is simply their 1 sided opinion and desire as opposed to the reality of the situation, primarily because that's what the Directors / Senior Management have told them to say to frighten timid employees into compliance.

    jrkob, TheBrit, shri and 3 others like this.

  2. #32

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    Quote Originally Posted by Soutie:

    Finally, having been employed until around 6 years ago my personal and anecdotal experience is that much of what HR tells you is simply their 1 sided opinion and desire as opposed to the reality of the situation, primarily because that's what the Directors / Senior Management have told them to say to frighten timid employees into compliance.
    I went into work with a fairly naive view that HR is to look out for the employees and make sure morale and the workplace environment is good to retain the employees. I realise that is wrong now.

    I'm glad that I only really dealt with HR when I was a bit older, wiser, sure of myself, and was in a stronger position to call bullshit and stand up for myself.

  3. #33

    So i'm past my three month non compete time clause already....already at 11 months at my new job. Just curious, if my old employer finds out that that I'm working for the "competition" a year later after I left..past the three month non compete..can they still "do anything" to me? Just wondering, if there's a complete safe period..


  4. #34

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    @blackbutterfly - would be cheaper for them to hire you back at a higher salary.


  5. #35

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    Quote Originally Posted by blackbutterfly:
    So i'm past my three month non compete time clause already....already at 11 months at my new job. Just curious, if my old employer finds out that that I'm working for the "competition" a year later after I left..past the three month non compete..can they still "do anything" to me? Just wondering, if there's a complete safe period..
    I'd imagine that the previous company would have to properly notify you of your breach in contract and provide the opportunity to right yourself, and in further breach, the company would have to list out damages specifically, quantify it then proceed to sue you. Anything less than this makes the award to the previous employer less and more a waste of time and potential bad press if they are a known company.

  6. #36

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    Quote Originally Posted by shri:
    You need to hangout with a better class of people.
    I think not reading contracts may be more common than you think... how many times have we seen on these boards folks who haven't read their employment, rental or gym contracts?

    Still, as stupid as that may be, I have slightly more sympathy for them than for the ones who did read and sign their contracts and decide that they were unfair later.

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