In today’s highly regulated business environment, human resources systems are no longer merely administrative tools; they are the first line of defence against legal risk. Landmark court decisions have repeatedly demonstrated that a well-designed internal system can serve as a statutory defence for employers and management. Conversely, the absence of proper systems, or failure to implement them effectively, may result in criminal liability, substantial compensation, and serious reputational damage.
This brand-new course combines legislative intent with extensive local case law, including decisions of the Court of Final Appeal, the High Court, and the latest cases from 2024 and 2025. It provides an in-depth analysis of more than ten critical HR systems covering recruitment, HR data retention, leave administration, salary deductions, performance management, codes of conduct, and personal data privacy. We will also examine emerging challenges such as AI governance and compliance, redundancy and business restructuring, and workplace mental health. Participants will gain insights into how courts assess the reasonableness and consistency of HR systems and how employers can effectively mitigate legal liabilities in everyday management.
Whether you are an employer, business owner, senior executive, HR director, manager, or HR professional, this course offers practical and immediately applicable guidance to help you avoid common legal pitfalls.
A. Artificial Intelligence (AI) Governance and Compliance
1. PCPD Compliance and Risk Classification – Following the Checklist on the Use of Generative AI by Employees (March 2025), identify recruitment and performance evaluation as “limited-risk” activities and ensure the legality and transparency of data used in AI systems.
2. ISO 42001 Internal Policy Framework – Drawing on the world’s first international AI management system standard, establish a six-pillar policy framework covering scope of use, data security, bias prevention, consequences of non-compliance, and employee training to govern employee conduct in relation to AI.
3. Contractual Amendments and Statutory Defence – Explicitly incorporate AI usage clauses into employment contracts and staff handbooks, including the prohibition of inputting personal data and the requirement for human review of AI outputs, thereby creating key evidence that the employer has discharged its duty of care.
B. Long-term Sick Leave Management System
1. Company Doctor Assessment Before Resuming Duties — Case law guidelines: how to lawfully and reasonably arrange an independent medical assessment to avoid risks of disability discrimination and constructive dismissal.
2. Procedures for Terminating Long-term Sick Leave Employees — Citing relevant case law on “unreasonable dismissal” and the Disability Discrimination Ordinance, analyse the court’s scrutiny standards and the requirements of procedural fairness in such dismissals.
C. Workplace Mental Health and Reasonable Accommodation System
1. Legal Position of Mental Illness as a “Disability” — Citing the Disability Discrimination Ordinance and case law, analyse the risk of discrimination against employees suffering from depression or anxiety disorders.
2. Boundaries of “Reasonable Accommodation” in Performance Management — When underperformance stems from mental health issues, examine the limits of statutory accommodations (such as flexible working hours or reduced workload), and how the courts distinguish between a genuine duty of care and impractical demands.
D. Leave Management System
1. Handling Habitual Sick Leave — Legal Guidelines — Citing case law to define what constitutes reasonable suspicion, how to conduct investigations, and the boundaries for lawful deduction of pay or lawful dismissal in cases of habitual sick leave.
2. Legal Risks of Allowing Sick Leave Employees to Resume Duties Early — Case law guidance: if an employer permits an employee who has not fully recovered to return to work, it may breach the Employment Ordinance, the Employees’ Compensation Ordinance, and the common law duty of care; how employers can mitigate such risks.
3. Pre-approved Annual Leave System — The legality of deducting pre-approved annual leave pay and key points for system design under case law.
4. Additional Legal Risks of No-pay Leave System — The impact of long-term no-pay leave on length of service, statutory entitlements (such as annual leave and maternity leave), and associated legal risks.
5. Legal Position of Sabbatical Leave — How to use contractual provisions to prevent sabbatical leave from being construed as constructive dismissal or interruption of continuous employment.
6. Potential Legal Risks of Garden Leave — Citing case law to analyse the employer’s authority to unilaterally impose garden leave, the obligation to pay wages, and the effect on restrictive covenants.
E. Overtime and Compensation System / Adverse Weather Work Arrangements
1. Legal Disputes on Voluntary Overtime, Rest Day Work, and Business Trips — Typical disputes and case law guidance: how to define working hours, calculate compensation, and avoid claims of “involuntary overtime”.
2. System Requiring Employees to Report for Duty During Adverse Weather — Expanded interpretation of employer liability in the latest 2025 cases, and how to mitigate risks through clear policies and safety assessments.
F. Salary, Bonus, Commission Deduction and Clawback System
1. Legality of Salary Deduction for Lateness — Case law analysis: the lawful deduction mechanism under the Employment Ordinance and the red line of de facto fines.
2. Whether Customer Complaints and Poor Attendance Justify Deduction of Commission or Discretionary Bonus — Citing cases to illustrate the legal distinction between “vested entitlement” and “discretionary nature” of commission and bonus in determining deductibility.
3. Whether “Golden Money” (Joining Incentive) Can Be Clawed Back — The validity of clawback clauses for sign-on bonuses and the guidance provided by case law.
4. Clawback Mechanism for Advanced Bonus — The lawful elements required for an employer to claw back advanced bonus payments when an employee departs before completing the agreed service period, with case law guidance.
G. Performance Management and Appraisal System
1. Performance Appraisal System as a Legal Basis for Reasonable Dismissal — How to design an appraisal system that will be accepted by the courts as a “valid reason”, particularly as a defence when dismissing employees with protected characteristics (such as age or sex).
2. Poor Performers Not Receiving Discretionary Year-end Bonus — Potential risks of discrimination and constructive dismissal, with relevant case law guidance.
H. Redundancy and Business Restructuring System
1. Design of Objective Selection Criteria — How the courts scrutinise selection criteria beyond “last in, first out”, and how to avoid implicit discrimination based on age, sex, or disability in the selection process.
2. Alternative Employment Arrangements During Restructuring — The employer’s obligation to offer a “reasonable alternative position” and the requirement of procedural fairness under case law, where failure may render a dismissal unreasonable.
3. Hidden Risks of Collective Redundancy — How the courts view procedural consistency and the impact on employees in large-scale redundancy situations.
I. Recruitment and Selection System
1. Recruitment Provisions Designed to Comply with Sections 17I and 17J of the Immigration Ordinance — How to ensure lawful recruitment procedures and avoid falling into the criminal net of aiding or employing persons not lawfully employable.
2. Criminal Liability of Line Managers and the Practice of “Statutory Defence” — Analyse the criminal risks faced by line managers during recruitment (such as under the Immigration Ordinance and anti-discrimination laws), and the internal defence mechanisms and record-keeping that the HR department must promote to discharge related legal liabilities.
J. Code of Conduct Compliance System
1. Whether Dishonest Conduct Justifies Summary Dismissal — The latest 2025 cases redefining the principle of “trust and confidence” and the applicable standard for summary dismissal.
2. Disclosure of Company Confidential Information — Confidentiality obligations during and after employment, and the implications of case law for HR in formulating relevant injunctive and claim provisions.
K. Suspected Work Injury Management System
1. Case Law Guidance on Establishing a Suspected Work Injury Management System — How to set up reporting, investigation, and medical assessment processes to guard against fraudulent claims and legal liability arising from delayed reporting.
L. Employee Complaint and Grievance System
1. Protective Legislative Provisions — In-depth analysis of Section 72B of the Employment Ordinance and the “victimisation” provisions under the anti-discrimination ordinances, and the strict requirements of case law in handling complaints.
2. Serious Consequences of Improper Grievance Handling by Department Heads — The lesson from cases where the court frequently determines that a department head’s mishandling constitutes the fundamental reason for constructive dismissal, resulting in substantial compensation payable by the employer.
M. Employee Disciplinary System
1. The System Must Be Followed — A lesson from a Court of Final Appeal case: where the staff handbook prescribes a disciplinary procedure, if HR or management fails to follow it, the court will not hesitate to rule the dismissal as unreasonable.
N. Personal Data Compliance System
1. Whether an Employee Personal Data Privacy Policy is Required — Legal obligations and best practices under the Personal Data (Privacy) Ordinance.
2. Policy on Monitoring Employee Use of Email, Websites, and Activities — How monitoring measures comply with the fair collection and transparency principles under the Privacy Ordinance.
O. Equal Opportunities and Fair Employment System
1. Proper Handling of Discrimination Complaints as an Employer’s “Statutory Defence” — Case law clearly indicates that having and implementing a robust internal complaint handling mechanism is key for an employer to avoid vicarious liability; we will analyse how the courts assess the “effectiveness” of this defence.
P. HR Data Retention and Record-keeping System
1. Different Retention Requirements and Criminal Liability Under Five Ordinances — Detailed explanation of the specific retention periods and format requirements for employment records, pay slips, and documents under the Employment Ordinance, MPF Ordinance, Employees’ Compensation Ordinance, Minimum Wage Ordinance, and Inland Revenue Ordinance.
Target Participants
Business Owners and Directors, Senior Executives and Department Heads, HR Directors, HR Managers and Officers, HR Professionals, and anyone interested in employment law compliance.
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