Most companies’ management and HR managers are invariably faced with one problem: how to formulate and implement policies, measures and contract terms to effectively deal with tricky and controversial HR issues. With a lack of legislation around these controversies, and we have to resort to case law in our common law system as our only legal guidance. This seminar draws on landmark court cases to examine and provide guidance on how to devise effective policies and measures in tackling sensitive and contentious HR issues so as protecting employers’ rights more and facilitate to remove the potential legal risks faced by the employers.
Another feature of the seminar from which the speaker will provide over 21 samples policies/ clauses for reference in order to aid the implementation of legal and enforceable HR policies by the participants.
1. Contentious policy 1: 4-68 provision will be effective from January 18, 2026, to develop a better part-time employee policy and guideline for the protection of employers’ rights as well as exemption from their potential legal risks under 4-68 provisions
• After the passage of 4-68 provision, it is easier for the part-time employees to reach the standard of 4-68 and become continuous contract employees (i.e. permanent employees). The definition of working hours is specifically important. How should employers clearly define the scope of working hours?
• Based on the legislation, sick leaves of the part-time employees should be defined as working hours. How can the employers handle this more effectively?
• The working hours should be defined “based on mutual intention” required by the legislation. For example, during typhoon, could the working hours of part-time employees be excluded from the calculation?
• Could employers dismiss a pregnant part-time employee, or a part-time employee who has suffered a work injury? Part-time employees are also entitled to unpaid statutory holiday based on legislation. How to address these various legal risks through a comprehensive part-time employee policy?
2. Contentious policy 2: Formulating sick leave policy to prevent sick leave abuse, and dealing with employees with chronic physical and mental illness
• Under current sick leave policies, an employee is entitled to full average daily wages even if such employee took out a sick leave for 1 day. Whether it is possible for employers to legally tighten such entitlement?
• Whether it is possible to arrange for designated doctors to obtain more specific information about the health conditions and detailed medical history of employees who are continually calling in sick?
3. Contentious policy 3: HR policies to effectively handle suspicious work-related injuries cases, and habits of doctor-shopping to continuously take out sick leave for work-related injuries
• When faced with suspicious work-related injuries cases, and habits of doctor-shopping to continuously take out sick leave for work-related injuries, how should HR managers formulate policy to address the relevant risks
• In what ways can employers stop paying periodical payment during work injury leave, to make the employee discontinue the suspected case and to settle the issue as soon as possible, and avoid criminal investigation by law enforcement agencies
• In many cases, injured employees would return to work but are injured again before the result of the medical assessment result is released. In what ways can employers delay the employee's return to work, in order to wait for the result of the medical assessment, and dismiss the employee in compliance with the law
4. Contentious policy 4: Reasonable grounds for employers to refuse employees who suffered work-related injuries to return to work, and the controversies surrounding the implementation of relevant policies
• Case law also held that in the event of an employee having lost work capacity, the employer is legally entitled to terminate such employee’s employment on the ground of frustration of contract. The burden of proof is on the employer
5. Contentious policy 5: Effective HR policies for employees with chronic illnesses
• Referring to cases, employers can arrange for employees with chronic illnesses who wish to return to work to attend medical examinations before returning. How should the policy be formulated to address this issue?
• Employees with chronic illness who fail to meet the establish working requirements can be lawfully dismissed without violating the law. How to draft this policy?
6. Contentious policy 6: How to ensure discretional monthly/annual bonus/commission do not become contractual/guaranteed bonus/commission
• Case law shows how HR managers may devise genuine “discretionary” bonuses/commissions within the legal definition
• Case law also shows the legal risks caused by improper handling of relevant policies
7. Contentious policy 7: HR policies on compensation for employees working overtime/off days/make-up leave or no make-up leave
• The Court of Appeal ruled in one case that for employment contracts stipulating for 2 rest days, Saturdays or one of the weekdays can be set as "regular holiday". After working on a "regular holiday", the employer may choose not to make up for leave. Will provide contract terms and relevant rules on how to draft the above
• Employees may "voluntarily" agree to work on rest days, and employers are not required to make up for leave. Will advise on how to formulate policies to avoid legal proceedings
8. Contentious policy 8: Dispute over whether employers can refuse to make up for leave after senior employees went on business trips or worked overtime on weekdays (Court of Final Appeal decision)
• The Court of Final Appeal allows insertion of contract terms stipulating that senior/professional ranking employees are not to be paid/made up for leave for overtime work
9. Contentious policy 9: Based on Springboard Injunction Contractual Terms to stop senior staff to encourage a group of quality staff to resign collectively and join competitors
• What are Springboard Benefits and Injunction? How can an employer adopt the contractual terms of Springboard Injunction to limit senior staff to motivate a group of quality staff to join the competitors?
• How to control senior staff and resigned staff to sue confidential information on their new employers / competitors?
10. Contentious policy 10: Fixed term contract employees are now the norm for business. How to develop a “Discretionary Contract-End Gratuity Policy” to better protects employers’ right?
• What are the guidance from the case laws on what kind of payment criteria could be included for discretionary gratuity?
• After the abolition of MPF offsetting severance payment, the gratuity paid on annual basis can still be offset. How to draft the relevant conditions?
11. Contentious policy 11: After the abolition of MPF offsetting Long Service Payment and Severance Payment comes into effective, the voluntary contributions could still be offset. How to formulate a “Voluntary Contribution Policy” for better protection of employers’ right?
• In case of employees are “reasonably dismissed”, or summarily dismissed without advance notice by their employers, can they withdraw the employer contributions?
• How to add voluntary contributions for offsetting long service payment and severance payment?
12. Contentious policy 12: Disputes over employees’ transfer arrangements/change of workplace arrangements
• Case law held that the legal grounds for an employer to carry out transfer arrangements include the fact that the nature of the contract has not changed, the employer has acted reasonably, and has not violated the mutual trust under the employment contract. Will advise on how to formulate relevant transfer policies in compliance with the law
13. Contentious policy 13: Disputes over whether employers may deduct employees’ salary on the basis of lateness
• Can being late be considered as absence from work? What is the general definition of absence from work according to case law?
• Case law has different guidelines on salary deductions for employees who are late depending on whether they are on monthly pay or piece work pay or hourly pay. How should HR formulate contract policies that comply with the laws and regulations?
14. Contentious policy 14: Clause on cancellation of contractual annual leave to avoid violation of the law and to better protect the rights and interests of employers
• According to the case law, what are the common illegal cancellation clauses?
15. Contentious policy 15: Formulation of an equal employment policy that can be used for discrimination complaints and court litigation to protect employers from legal liabilities (Total 15 pages legal document which can be statutory defence in case of any complaints)
• According to section 46 of the Discrimination Ordinance, “employers shall be liable for the illegal acts committed by employees during their employment, unless the employer can prove that the employer has taken reasonable and feasible measures to prevent its employees from doing the relevant things”
• Will advise on how to formulate an equal employment policy that can be used for complaints or court litigation to avoid transfer of liability
16. Contentious policy 16: Employee Mental Health Policy to cope with number of litigations on employees’ mental health is increasing.
• How can the corporate support employees with mental health illness, to embody employers’ legal responsibilities of “duty of care” and “reasonably prudent”?
17. Contentious Policy 17: When the employee wishes to withdraw his/her resignation due to work injury or pregnancy after he/she submits the resignation notice, and within the notice period
• According to case law and legislations, if the employer has confirmed the employee's resignation, the employer has the statutory right to decide whether to accept withdrawal of the resignation. How should relevant policies be formulated?
18. Contentious policy 18: Disputes over overlapping holidays for lack of statutory provisions resulting in grey areas
• While company sick leave allowance is for 4 consecutive sickness days and at a daily rate of 4/5 of the average daily wages, pursuant to the Employment Ordinance. If an employee takes paid sick leave for 4 consecutive days from Friday to Monday, should the allowance be 4/5 or full salary on Saturday and Sunday?
• Is any legal liability for an employer to pay staff with paid rest day during unpaid sick leave period?
19. Contentious policy 19: Disputes over unpaid leave policy
• Disputes over unpaid leave include: how to ensure "voluntary" taking of leave, whether unpaid leave is counted as an employee’s seniority; for several days of unpaid leave such as Monday to Wednesday, whether Saturday and Sunday rest days should be paid; for long period of unpaid leave such as 3 months, what should be the arrangement for relevant annual leave, rest day, statutory holidays and contractual bonus?
20. Contentious policy 20: Effective social media policy to protect the rights of employers
• How the court examines disputes over employees giving personal remarks on personal social media accounts/occasions?
21. Contentious Policy 21: Reminder of legal liability to resigned/terminated employees
• How should HR department issue legally binding reminder letter to the employee who resigned, including such employee’s duty of confidentiality regarding the company’s business secrets, the prohibition of storing (including mobile phones) the company’s confidential information, and the legal duty to not delete any information stored in the company’s computer?
(Note: For any references to sample policies, clauses, and contract terms will be provided in English version)
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