Our client is a Hong Kong company serving as the regional headquarters for a European luxury group, with subsidiaries across key Asia-Pacific jurisdictions. Following the appointment of a new regional head of Human Resources (HR), a review of existing employment contracts revealed inconsistencies in key terms of the contracts across the different subsidiaries – notably the benefits and post-termination covenants, and the absence of clauses regarding data protection. The client needed an immediate employment contract, for a new senior hire in Hong Kong, which would also serve as a model for future agreements across the region.
CHALLENGE
The client reached out to us as a boutique Hong Kong law firm with a network of correspondents in key Asia-Pacific jurisdictions, to develop a bespoke employment contract for Hong Kong and coordinate the localisation of the new contract for the group subsidiaries across the region.
One key challenge across jurisdictions was that modifying existing employment terms required individual employee negotiation. The client aimed to avoid the need for such renegotiations while ensuring that the new contract was compliant with local legislation and the group’s international HR policies.
ACTIONS
Given the urgency of hiring a key employee in Hong Kong, the client decided that this contract would serve as the matrix for all future employment agreements across the region. The client’s request was for one matrix contract with optional clauses for key employees (such as restrictive covenants protecting the employer’s legitimate interests). An alternative approach would have been to create two separate templates: one for entry- to mid-level employees and one for senior employees.
Once the new key employee’s contract was approved and signed, we used it to develop a Hong Kong template. We then coordinated with our trusted correspondents in other Asia-Pacific jurisdictions to adapt the contract to local laws, ensuring minimal yet necessary amendments for compliance while preserving a consistent framework across the group.
OUTCOME
As our client’s sole point of contact in the Asia-Pacific region, we delivered:
- a fully compliant employment contract for the senior hire in Hong Kong;
- a standardised employment contract matrix for use in Hong Kong with optional clauses, making it adaptable for entry- to senior-level employees;
- a contract playbook offering guidance and setting out best practices, including guidance on when to seek legal advice for bespoke restrictive covenants;
- localised versions of the employment contract, reviewed and adapted for use in other jurisdictions.