Are there any consequences if an employee accepts a job offer and later changes his mind before starting work?
In this new episode of Labour Law Grab n Go, our head of Employment and Pensions practice and Partner Cynthia Chung talks about the recent decision of Law Ting Pong Secondary School v Chen Wai Wah which looked at whether an agreed termination notice period can be enforced before commencement of employment. The Court held that employee had to make payment in lieu of notice by not commencing employment. The court found that the school had a legitimate interest in the performance of the contract which goes beyond compensation, and helpfully commented that generally, the law against penalty clauses may not apply to payment in lieu of notice clauses in the context of employment, subject to the actual drafting of the clause.
Tune in now!