1. Competition Ordinance
What type of arrangements may contravene the Competition Ordinance?
The Competition Ordinance (Cap. 619) is implemented to prohibit conduct which will prevent competition in Hong Kong. Companies are required to comply with competition law, and the Competition Ordinance has affected the employment practice in Hong Kong.
The following acts by the businesses may contravene the Competition Ordinance:
Wage-fixing agreements
The act of fixing, maintaining, controlling salaries or wages or any other terms of employment that would influence an employee’s decision on where to work.
Non-poaching agreements
The act of entering into agreements with other employers in not soliciting or hiring each other’s employees, which could be regarded as unlawful market sharing under the Competition Ordinance.
Exchange of sensitive information
It is normal for businesses to exchange information on a variety of matters which will not pose any risk to competitive process. However, there will be competitive concerns when businesses exchange information on their intentions in hiring or compensating employees, which could be in breach of the Competition Ordinance.
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