Hong Kong’s employment law landscape is undergoing profound transformation. Between 2023 and 2026, courts at all levels have delivered a series of landmark rulings with far-reaching implications for HR practices. These decisions have reshaped how employers approach summary dismissal, constructive dismissal, restrictive covenants, remuneration, discrimination, workplace privacy, and cross-border employment disputes.
For employers and HR professionals, these rulings are more than legal updates — they are critical safeguards against substantial financial claims and reputational damage. By understanding the latest compliance requirements and emerging risk trends, organisations can better formulate internal policies, manage employment disputes effectively, and foster a fair, lawful, and sustainable workplace.
In this masterclass, the speaker will provide a detailed and in-depth analysis of 22 representative cases, translating legal principles into practical, actionable HR strategies and equipping participants with a structured framework to manage employment risks confidently.
Key Topics & Case Insights
A. Termination of Employment
1. Does non-renewal of a fixed-term contract during sick leave constitute unreasonable dismissal?
An employee engaged under successive fixed-term contracts took prolonged sick leave during the final year. Upon expiry, the employer declined renewal. The Court held that internal administrative guidelines do not form contractual terms; a fixed-term contract ends naturally upon expiration and does not constitute dismissal; sick leave does not alter the nature of the contract or create a right to renewal.
Key HR Takeaway: Clearly state that renewal is at the employer’s discretion and document objective business reasons.
2. The extremely high threshold for summary dismissal
A senior executive was summarily dismissed for alleged dishonest expense claims. The Court held that summary dismissal is reserved only for fundamental breaches or the most serious misconduct, requiring cogent evidence. The employer failed to meet this threshold and was ordered to pay significant compensation of 5.4 million.
Key HR Takeaway: Always conduct thorough, fair investigations and ensure strong evidence before summary dismissal.
3. Employer acquiescence and failure to address employee misconduct and leads to wrongful dismissal
Failure by the employer to address employee misconduct may amount to waiver that leads to wrongful dismissal. Employees can rely on instructions from individuals with apparent authority.
Key HR Takeaway: Ensure consistent enforcement of policies and clearly define authority structures and a thorough investigation is required when copying with employee misconduct.
4. Constructive dismissal arising from unilateral suspension of commission payments
Where an employer unilaterally suspends commissions or alters payment arrangements without contractual basis, this may constitute a repudiatory breach and constructive dismissal.
Key HR Takeaway: Any changes to remuneration must be mutually agreed and properly documented.
B. Remuneration Disputes
5. Commission is “wages” — monthly rated employees’ wages already cover rest days and holidays - significant impact on section 7 and section 13 calculations
The Court confirmed that commission forms part of wages and applies to statutory calculations, including rest days and holidays.
Key HR Takeaway: When calculating holiday pay, the statutory set off mechanism under the Employment Ordinance must be correctly applied to avoid double payment.
6. “Discretionary bonus” becoming contractual remuneration
A bonus consistently calculated by formula over time may be regarded as contractual entitlement, even if labelled as discretionary.
Key HR Takeaway: Draft bonus provisions must be clearly and exercise discretion reasonably and in good faith.
7. Impact of termination mode on employee entitlements
Disputes involving wages, notice pay, and leave hinge on how employment is terminated.
Key HR Takeaway: The mode of termination (resignation vs. dismissal vs. deemed termination) directly affects entitlements such as payment in lieu of notice and severance payment.
C. Work Injury & Employees’ Compensation
8. Injury during typhoon — employer liability
Employers may be liable for injuries suffered during adverse weather conditions if a safe system of work is not ensured.
Key HR Takeaway: Maintain robust safety measures in all working conditions including protective measures during adverse weather conditions.
9. Stress-related injuries — causation requirement
Claims for work injuries caused by stress must be supported by clear medical evidence demonstrating causation.
Key HR Takeaway: Implement controls on working hours and monitor employee well-being.
10. Workplace conversations caused psychological injury whether as an “accident” (Essential Reference)
Certain workplace incidents or conversations may qualify as an “accident” under compensation laws if they cause psychological harm.
Key HR Takeaway: Take workplace conflict and mental health risks seriously.
D. Discrimination Disputes
11. Pregnancy discrimination in contract renewal and bonus denial
Failure to renew a contract or grant bonuses linked to pregnancy constitutes unlawful discrimination.
Key HR Takeaway: Ensure decisions involving protected characteristics are supported by proper documentation.
12. Disability discrimination during probation
Dismissal of an employee during probation due to illness may still breach disability discrimination laws.
Key HR Takeaway: Consider reasonable accommodation before taking adverse action.
E. Restrictive Covenants
13. Unenforceable non-compete clauses
Overly broad restrictions without geographical or business limits are unlikely to be upheld.
Key HR Takeaway: Ensure restrictive covenants are reasonable, proportionate, and well-defined.
14. Non-solicitation obligations - even where the client initiates contact, a breach may still occur
Even where clients initiate contact, a breach may still occur depending on the employee’s response.
Key HR Takeaway: Non solicitation clauses should be drafted to focus on the substance of the prohibited conduct; employees should be reminded in writing of their continuing obligations upon termination.
F. Workplace Monitoring & Privacy
15. Lawful employee monitoring does not constitute an invasion of privacy
CCTV surveillance in public workspaces is generally permissible where it is lawful, proportionate, and disclosed.
Key HR Takeaway: Ensure transparency and compliance with data privacy principles.
G. Immigration Compliance
16. Employing illegal workers — strict liability offence
Employers may face criminal penalties regardless of whether they knew the worker was unlawfully employable.
Key HR Takeaway: Implement rigorous identity verification procedures.
Who Should Attend
HR professionals, in-house counsel, compliance practitioners, and senior management responsible for employee relations and organisational policies.
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