The Subcontractor Non-Solicitation Agreement is essential for businesses operating in Hong Kong that engage external contractors or service providers. This document becomes particularly crucial in scenarios where subcontractors gain access to valuable employee information, client relationships, or other business connections. The agreement, governed by Hong Kong law, helps protect against potential poaching of staff, clients, or other subcontractors, while ensuring compliance with local competition laws and restraint of trade principles. It typically includes clearly defined restricted periods, geographical limitations, and specific categories of restricted persons or entities. The document is structured to be enforceable under Hong Kong jurisdiction, taking into account the territory's common law system and business practices, while maintaining reasonable restrictions that courts would likely uphold.
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1. Parties: Identifies and defines the contracting parties - typically the main contractor and subcontractor
2. Background: Explains the context of the relationship and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Restricted Period', and 'Restricted Persons'
4. Scope of Relationship: Outlines the nature of the subcontractor relationship and confirms independent contractor status
5. Non-Solicitation Obligations: Details the core restrictions on soliciting employees, clients, and other subcontractors
6. Duration of Restrictions: Specifies the time period during which the non-solicitation obligations remain in effect
7. Geographical Scope: Defines the territorial limits of the non-solicitation restrictions
8. Acknowledgments: Subcontractor's confirmation of the reasonableness of restrictions and receipt of consideration
9. Remedies: Specifies available remedies for breach, including injunctive relief and damages
10. Severability: Ensures remaining provisions stay valid if any part is found unenforceable
11. Governing Law and Jurisdiction: Confirms Hong Kong law governs and specifies jurisdiction for disputes
12. Entire Agreement: Confirms the agreement represents the complete understanding between parties
1. Confidentiality: Additional provisions protecting confidential information, used when not covered by a separate NDA
2. Non-Competition: Additional restrictions on competitive activities, if appropriate and necessary for business protection
3. Assignment: Provisions regarding the ability to transfer rights under the agreement, used for larger corporate structures
4. Survival: Specifies which provisions continue after agreement termination, used for complex arrangements
5. Notice Requirements: Formal communication procedures, added for relationships requiring structured communication
6. Third Party Rights: Addresses whether third parties have enforceable rights, relevant under the Contracts (Rights of Third Parties) Ordinance
7. Force Majeure: Added when parties want to address unforeseeable circumstances affecting performance
1. Schedule 1 - Restricted Clients: List of specific clients covered by non-solicitation provisions
2. Schedule 2 - Restricted Employees: Categories or list of employees covered by non-solicitation provisions
3. Schedule 3 - Territorial Scope: Detailed description of geographical areas covered by restrictions
4. Schedule 4 - Specific Services: Detailed description of services provided by subcontractor
5. Appendix A - Form of Acknowledgment: Template for periodic acknowledgment of obligations by subcontractor
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