Employee awarded HKD 5.4 million in wrongful dismissal damages
A recent decision of the Hong Kong High Court underscores the stringent standard for justifying summary dismissal in the employment context. The court reaffirmed that summary dismissal should only be exercised in the most serious cases of misconduct and emphasized the importance of context, procedural fairness and intent.
The case involved a senior executive who was summarily dismissed after submitting monthly expense claims which, while within the agreed cap, were supported by invoices that did not directly relate to his personal or family expenses. The employer alleged dishonesty, but the court found the dismissal to be wrongful and awarded substantial damages.
The senior executive was employed under a three-year fixed-term contract. Under the employment agreement, the employee was entitled to claim up to RMB20,000 per month in family-related out-of-pocket expenses, subject to the provision of official tax invoices (fa piao). The individual regularly submitted such claims, which were processed and paid by the employer.
The employer later took issue with three hotel invoices submitted over several months. While the invoices were genuine and issued under the employee’s name, they related to a banquet held by a third party. The employer alleged that this amounted to fraud or dishonesty and summarily terminated the employment.
The employee accepted that the invoices did not...
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