Such thing as "Exit Contract" in Hong Kong?

Is there a law in Hong Kong stating that i HAVE to sign an exit contract of sorts?


In my original contract it states that i just need to give one months notice, which i did, and our employment contact is over. However, when i was about to leave the company i was asked to sign an exit contract whereby the particulars had been slightly amended to include specific companies i could not work for or contact. I refused, so my final payment has been held.


If anyone can give me any info on this matter that would be very much appreciated.

Unfortunately this seems quite common in HK.


Non-compete clauses (restraints of trade) are difficult to enforce through the Courts even if they were part of the original employment contract you signed when you joined the company. If you did not sign such a non-compete clause when you joined the company and for the company now to attempt to impose such a restraint of trade is a dubious practice and I highly doubt whether they could enforce it through the court should it come to that.


If I were you, I would threaten them with a Labor Court hearing if they refuse to pay you your final month's salary. Failing that, seek a compromise and agree to sign the exit contract provided that the offending paragraphs restraining you from contacting other companies or working for them are struck out. Ask verbally for this and follow it up with a dated and signed letter asking for this. If the company still will not budge then please seek advice from the Labor Department in Wan Chai and show them a copy of any correspondence on the matter to show that you tried to resolve the matter amicably.


I have heard of companies trying to enforce non-compete clauses after firing people and the fired person then eventually finds employment with a competitor and the former employer threatens to issue an injunction by way of angry solicitor's letters. Again, highly dubious. The law on non-compete clauses in HK is rather a mess following a recent case involving a former HSBC senior employee. It is now a very gray area and needs sorting out. In my opinion, many companies insert such clauses just to 'scare' former employees. Whether they would actually go to the time, trouble and expense of seeking to enforce such a clause is another matter.


In your case, the employer is trying to amend the employment contract to their advantage. You are under no obligation to sign it. In general, my advice to anyone signing a pre or post- employment contract is to NEVER sign if it contains a non-compete clause. Ask for it to be struck out before signing.

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


There is NO obligation to sign another ‘exit’ contract unless such is specifically agreed to in your employment contract….as always 90% of your “rights and obligations” are found IN your contract. The employer is legally bound to pay you the amount owed to you under your salary arrangement within 7 days of your last day of employment (Employment Ordinance of Hong Kong); should the employer fail to do so he commits an offence and you should take your case to the Labour Tribunal.


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