On Dec. 29, 2023, the Hong Kong High Court handed down a decision that once again clarified and reaffirmed an employer’s unfettered right to terminate an employee by giving notice or payment in lieu in accordance with the employment contract, without giving any reason or cause.

In this case, the plaintiff, who had been employed by the defendant airline as a pilot since June 2005, was terminated in September 2019 by way of payment in lieu of notice. It is important to note that this was not a summary dismissal for misconduct. The plaintiff brought a claim against the airline at the labor tribunal that was subsequently transferred to the High Court, alleging that the airline’s decision to terminate his employment was in breach of the implied duty of trust and confidence, or wrongful dismissal, claiming substantial monetary compensation for loss of earnings of more than HK$13 million.

In addition, he raised claims for libel, defamation, dissemination of false information, reputational damage, damage to professional reputation and perjury. These claims were struck early in the proceedings upon application by the airline so the plaintiff could proceed only with his employment claim for wrongful dismissal.

The crux of the plaintiff’s complaint about his termination, relying on the case of Tadjudin Sunny v. Bank of America, National Association, was that the airline abused its power prior to terminating his employment and its actions in terminating his employment in bad faith...

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