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Legal Update

One Day to Commencement of the Contracts (Rights of Third Parties) Ordinance

31 December 2015
Mayer Brown JSM Legal Update

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:




  • Duncan A. W. Abate
    T +852 2843 2203
  • Hong Tran
    T +852 2843 4233

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