Employers may be making more redundancies than usual as Hong Kong finds itself facing a time of political and economic uncertainty. Whether you’re an employer or employee, it pays to have a basic understanding of the law regarding redundancies. How and when do situations arise whereby you may need to make someone redundant?
A demotion normally involves a reduction in rank or status, or a decrease in job responsibilities and/or salary. An employer may wish to demote an employee for a variety of reasons including poor performance, capability and/or as an alternative to termination.Regardless of the reason for the demotion, an employer should be careful when demoting an employee. Any demotion should be managed professionally and lawfully; failure to do so may expose the employer to an unwanted claim.
Whether you are an employee or an employer, it pays to have an understanding of the law regarding redundancies. While last year saw significant job cuts across the finance and aviation industries, redundancies can occur in any industry at any time due to a range of political, technological and economic factors.
On 2 March 2016, the Employment (Amendment) Bill 2016 (the “Bill”) was introduced to the Legislative Council. The Bill seeks to empower the Labour Tribunal to make an order for reinstatement or re-engagement as requested by an employee in a case of unreasonable and unlawful dismissal without the need to first secure the employer's agreement. The Bill does not change the current framework in regards to unreasonable dismissals that are not unlawful.
