Legality of worker’s immigration status affects validity of employment agreement
The case of Li Mijiang v Hoilung Group International Limited [2025] HKCFI 3206, highlights the importance of clear employment documentation in cross-border employment arrangements.
The Claimant, Mr. Li, was awarded damages by the Hong Kong Labour Tribunal for arrears of wages and other payments under Hong Kong law. The Defendant (the Company) successfully appealed on the basis that the Tribunal had failed to properly investigate key issues, and argued that Mr. Li was in fact employed in Mainland China by its Shenzhen entity.
Mr. Li claimed he was employed by the Company under two successive agreements dated 1 August 2021 (2021 Agreement) and 1 January 2022 (2022 Agreement).
He alleged he had been constructively dismissed under section 10A of the Employment Ordinance due to the Company’s failure to pay several months’ wages. He therefore commenced proceedings in the Labour Tribunal claiming a payment in lieu of notice, late and underpaid wages, leave and holiday entitlements, and the value of a share option.
The Company denied any Hong Kong employment relationship, asserting instead that Mr. Li was employed under a separate contract by “深圳海龍精密股份有限公司” (the Shenzhen Company). It contended that the 2021 Agreement did not exist and that the 2022 Agreement was never performed.
The Labour Tribunal preferred Mr. Li’s evidence and awarded him HK$300,580.96.
The Court...
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