According to section 9 of the Employment Ordinance, under what circumstances can
ID: 2806613 • Letter: A
Question
According to section 9 of the Employment Ordinance, under what circumstances can an employer terminate a contract of employment without notice or payment in lieu? (c) 10% (d) The economy in Hong Kong was doing bad during the period between 2007 to 2010. Pat employed Don as an accounting clerk from 2007 until 2010. Don's initial employment contract provided for an end of year bonus equal to one month's salary. In January 2008, Pat orally announced to his staff at a meeting that he would be cancelling the bonus and that, for 2008, there would only be a S500 bonus. Don did not raise any objection at the meeting, accepted the $500 bonus, continued to work for Pat, and did not complain when the bonus was not paid in 2009 and 2010. After leaving his job, Don brought proceeding against Pat claiming the bonus payments for 2008, 2009 and 2010.Explanation / Answer
Answer to Part C:
An employer may summarily dismiss an employee without notice or payment in lieu of notice if the employee, in relation to his employment:
1. Wilfully disobeys a lawful and reasonable order
2. Misconduct himself
3. Is guilty of fraud or dishonesty;
4. is habitually neglectful in his duties.
Taking part by an employee in a strike is not a lawful ground for an employer to terminate the employee's contract of employment without notice or payment in lieu.
Answer Part D:
If the person is employed in Hong Kong the Employment Ordinance will apply to that person as equally to locals as well as foreign nationals working in the country. In this case, the bonus offered to Don was contractual in nature and not at the discretion of the employer. Given the nature of the contract, Don has the right to file a case against Pat for the non-payment of the contractual bonus as it is not linked to performance.
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