Ex-Employer keeping me from working for 3mo, but offering NO COMPENSATION.

Hello,


I was terminated from my previous job in Jul 2010 and have since then found employment through one of my suppliers. According to my NDA I am not allowed to work for any competitors (any company in my sector) nor am I allowed to deal with vendors, suppliers, and the list goes on. . . This six month ban ends in Feb 2010. Do I have any rights? I feel like my ex-employer should compensate me for the next three months that I am not allowed to work.


If I would understood the severity of my NDA, I would have never signed it. I am 27 and am just trying to pay my taxes.


If you can offer any advice I would really appreciate it.


Please feel free to personal message me as well.


Thank you!

i think such legal clauses do not hold in hong kong. i would check with the government labour dept though

Thanks for the responses! I have checked with the Labour Dept and, unfortunately, their laws do not apply to the employee after a contract has been terminated. At this point, if I have any case, I think I am going to need a lawyer but they are so expensive. I really am at a loss. My ex-employer already had his lawyer email me that if I break my 6mo non-dealing clause then he will file an injunction on me. The injunction alone costs 300K which I may be liable to pay if I lose the case. Ugh!

I was thinking I may have a case for loss of earnings. I registered for legal advice under the "free legal advice scheme" today but unfortunatley it takes between 4-8 weeks to get an appointment. If anyone knows anyone that may be interested in something pro bono, please let me know by personal message! Thank you everyone for your help. I really do appreciate you taking the time to respond.

[UPDATE] Please note that fee quotes stated in historic postings may be out-of-date.


Restraint of trade clauses and other agreements restricting you to be employed in your profession are difficult for an employer to successfully enforce in most situations. In Hong Kong, the courts typically allow the restriction to be enforced in only very limited circumstances and therefore it is difficult to restrain an individual’s rights to be employed in his/her designated profession.


As you are a junior employee (and assuming that you are not upper management or possess sufficient trade secrets about your former company), it will be extremely difficult for your ex-employer to enforce the restraint of trade clauses unless the agreement was very specific and properly limited. Such a restrictive covenant must be “reasonable” in all three critical areas to be enforceable: It must be for a specified job/activity, over a specified length of time, and a specified geographical area. It may be that the designated time period of 6 months is sufficiently unreasonable and lengthy enough to be considered unreasonable and therefore unenforceable.


We would, however, need to review the entire agreement and wording of the clause(s) and the total circumstances of your employment in order to determine if any of the undertakings you agreed to would be effective.


If you are in need of assistance with your matter, please contact us a weirlaw@weirandassociates.com to set up a consultation.


Weir & Associates

Solicitors & Notaries

16th Floor Tak Shing House

Theatre Lane

20 Des Voeux Road Central

Central

Hong Kong

Tel : 2526-1767

Fax : 2868-3568

email : WeirLaw@weirandassociates.com

www.weirandassociates.com