Employee Discipline: Hong Kong Employment Law
Employees in regulated financial industries facing investigation or discipline and their employers should understand employment and regulatory...
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What are the key legal considerations of which employers and employees in banking should be aware when transitioning out of an employment relationship?
1.Notice - Generally, employment ends upon expiry of notice period agreed in employment contract or payment of salary in lieu
2. Cause - Employer ends employment due to conduct of employee inconsistent with core of the employment relationship (e.g. habitual neglect in duties)
3. Constructive Dismissal - Employee ends employment due to employer conduct that undermines the core of the employment relationship (e.g. breakdown of trust and confidence)
1. Bonus - Non-discretionary bonuses may be payable on pro-rated basis. Bonuses termed discretionary may not in fact be discretionary. Discretion in awarding bonuses may be subject to duty not to exercise discretion irrationally.
2. Restrictive Covenants - Non-compete and non-solicit clauses are enforceable only if reasonable. Such clauses may not survive employment termination if employer has breached contract.Garden leave may affect calculation of restricted period.
1. Regulatory - Employer must notify SFC of cesser of licensing, including any internal investigations before the cesser
2. Tax - Employer must notify IRD and withhold salary for 1 month for employee leaving Hong Kong pending tax clearance
3. Immigration - A change of employer may require a new work visa
Employees in regulated financial industries facing investigation or discipline and their employers should understand employment and regulatory...
Post-employment restrictive covenants such as non-compete and non-solicitation clauses may be unenforceable or narrowly construed in Hong Kong.
The Employment Ordinance will be amended in response to the Covid-19 pandemic regarding vaccination, absence from work, sickness allowance and...
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