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HK laws regarding employer terminating contract

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  1. #1

    Join Date
    Oct 2012
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    HK laws regarding employer terminating contract

    If an employment contract states the employers right to terminate a contract (e.g. on grounds of misconduct), but says nothing in terms of what they will do with your pay or notice, what are the Hong Kong laws that may apply?

    Looking at a contract (for a friend, of course) it explicitly says damages the employee must pay if the employee terminates the contract early, but nothing regarding the employer ending the contract early. Just wondering if there may be any laws that protect the employee. (Yes, ha ha...)

    Also wondering if there are any red flags to look out for...


  2. #2

  3. #3

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    Thanks that's what I wanted to know.

    And employers are not required by law to give a notice period? (Seems so from this...)

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  4. #4

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    Is there any situation whereby an employer or an employee can terminate a contract of service without notice or payment in lieu of notice?
    A2.
    Yes.

    An employer may summarily dismiss an employee without notice or payment in lieu of notice if the employee, in relation to his employment, -


    (a) wilfully disobeys a lawful and reasonable order;
    (b) misconducts himself;
    (c) is guilty of fraud or dishonesty; or
    (d) is habitually neglectful in his duties.

    Employers should note that summary dismissal is a serious disciplinary action. It only applies to cases where an employee has committed very serious misconduct or fails to improve after the employer's repeated warnings.

    An employee may terminate his employment contract without notice or payment in lieu of notice if -

    (a) he reasonably fears physical danger by violence or disease;
    (b) he is subjected to ill-treatment by the employer; or
    (c) he has been employed for not less than 5 years and he is certified by a registered medical practitioner as being permanently unfit for the type of work he is engaged.

    https://www.labour.gov.hk/eng/faq/cap57d_whole.htm

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  5. #5

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    But what about cases if the employer wants to terminate and it's not one of those points? They just don't like something you did, want you gone, but there's nothing in your contract about the process in this case?


  6. #6

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    Quote Originally Posted by Elegiaque:
    But what about cases if the employer wants to terminate and it's not one of those points? They just don't like something you did, want you gone, but there's nothing in your contract about the process in this case?
    those are the only accepted reasons for immediate dismissal, and therefore nothing can be written in the contract. If the employer wants to dismiss immediately they have the right to pay the employee ALL outstanding benefits, holiday pay, salary, bonus, in lieu of notice (I say all because s/he might be owed long service payment).

  7. #7

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    Sounds like a tutorial centre.

    Firstly, an employer can terminate without pay (it's called summary dismissal) if the employee did something really bad. But this is hard for the employer to prove. So I would imagine things at this level are, going to work drunk, stealing property or money, basically anything that you would end up in jail for.

    But in most cases it is not worth it for the employer to opt for this. If the employee is smart, they can get a healthy payout for wrongful summary dismissal. It's cheaper and easier for the employer to pay the notice, any remaining monies and get a signed final payment letter.

    The employee however in this case would need to not sign any letters, and take the employer to court. Most employees do not have the nerve, time or energy to do that. But if you do, it can be done and very cheap too.

    You need to read the contract about termination clause to see what is owed. It will say it very clear and if not then the government's standard regulation will apply.