The Contracts (Rights of Third Parties) Ordinance (Cap. 623) (the "Ordinance") comes into force on 1 January 2016.
The Ordinance allows a third party to enforce a wide range of contracts, such as standalone confidentiality and settlement agreements. However, the law will not confer any right on a third party to enforce a term of an employment contract against an employee.
Employers should consider revising their employment and employment-related contracts to maximise enforceability by third parties where desirable and expressly contracting out the Ordinance where it is not.
Please see our earlier legal updates for further reference:
- Giving Third Parties Contractual Rights – The New Rules
- Hong Kong's Contracts (Rights of Third Parties) Ordinance to commence on 1 January 2016
Originally published on 31 December 2015
Visit us at www.mayerbrownjsm.com
Mayer Brown is a global legal services organization comprising legal practices that are separate entities (the Mayer Brown Practices). The Mayer Brown Practices are: Mayer Brown LLP, a limited liability partnership established in the United States; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales; Mayer Brown JSM, a Hong Kong partnership, and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
© Copyright 2016. The Mayer Brown Practices. All rights reserved.
This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein. Please also read the JSM legal publications Disclaimer.