Deacons Employment & Pensions Newsletter, April 2016

By: Cynthia Chung and Elsie Chan

Submitted by Firm:
Firm Contacts:
Cynthia Chung
Article Type:
Legal Update

Welcome to the Spring issue of our Newsletter. In this issue, we will discuss the proposed amendments to the Employment Ordinance, and some new cases. We are also pleased to receive two articles from our fellow member firms of the Employment Law Alliance, MeME and Shearn Delamore & Co. MdME is a leading Macau full service law firm, with a strong reputation for providing its Clients with high-quality and practical legal advice, following international standards of responsiveness and efficiency. Since its foundation, MdME and its professionals have been involved in the largest Macau projects, developments and transactions. Shearn Delamore & Co. is a heritage law firm that was established in 1905, and it is one of the largest firms in Malaysia. It is a full service commercial law firm with over 350 staff members, providing specialised and dedicated service in all practice areas of a commercial law practice.

Employment (Amendment) Bill 2016

Cynthia Chung and Connie Yip

The Employment (Amendment) Bill 2016 (“the Bill”) was gazetted on 12 February 2016 and has been presented to the Legislative Council on 2 March 2016, with a view to amending the current Employment Ordinance (Cap.57) (“the Ordinance”).  Full article »

Any More Ladies Night?

Elsie Chan

It is quite a norm in Hong Kong for bars or night clubs to have ladies night, offering special discount or free drinks to female customers. Yet, this arrangement has become a hot topic after the District Court’s ruling that it is against the Sex Discrimination Ordinance (“SDO”).  Full article »

Court allows illegal workers to receive employees’ compensation

Elsie Chan and Connie Yip

In the case of Jiang Zhong vs. Up Cheer Ltd & Ors, the court exercised its discretion under section 2(2) of the Employees’ Compensation Ordinance, Cap. 282. (“ECO”) to treat a person employed under an illegal contract as if he was employed under a valid contract of service. Full article »

Update on employee taxation

Stefano Mariani

Salaries tax is charged on income from employment, and emoluments from employment that are deemed by the Inland Revenue Ordinance to be income from employment. That is because those payments are from employment, constituting consideration for past, present, or future services of the taxpayer as an employee. Conversely, severance payments paid for the abrogation of contractual rights arising from the termination of a service contract are not usually taxable in Hong Kong. Such payments are not from employment; they are compensation for the breach of contract flowing from the termination of a service contract, or otherwise the voluntary surrender by an employee of his rights under that contract.  Full article »

Macau Courts apply Macau Labor Law to Hong Kong work relationship

Isolda Brasil, MdME

In a recent case involving labor credits, Macau’s Judicial Base Court has ruled in favor of a Hong Kong worker against his employer, a Hong Kong Company. Full article »

A Relook At The Laws On Retrenchment

Sivabalah Nadarajah, Shearn Delamore & Co

During uncertain times and shrinking profits, organisations would usually decide to reorganise their business structure in order to create a leaner workforce therefore reducing their operating costs to weather the impact of a slowing economy. Inevitably, the reorganisation would result in the retrenchment of its employees which are considered a surplus to the needs of the organisation. With news of retrenchment exercises carried out in the financial, manufacturing and airline industries, we find that there is a need to restate the current position of the law in relation to retrenchment.  Full article »