In the recent case of Lo Wai Keung v Hannover Ruck SE, the Hong Kong Court of First Instance addressed a significant point of law regarding the termination...
Hong Kong Employment and HR
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In the recent case of Lo Wai Keung v Hannover Ruck SE, the Hong Kong Court of First Instance addressed a significant point of law regarding the termination of employment contracts and the implications of making a payment in lieu of notice. The case revolved around the termination of Mr. Lo's employment by his employer and whether such termination, effected by a payment in lieu of notice, constituted a termination without notice. This determination was crucial in deciding Mr. Lo's entitlement to share awards under the company's scheme. The court's analysis provides valuable insight into the interpretation of employment contract terms and the legal consequences of different modes of termination.
Mr. Lo Wai Keung, the Claimant, was employed by Hannover Ruck SE (“Hannover”), the Respondent. His employment was terminated by a letter dated 10 December 2020, which stated that his employment would end on 31 December 2020. In the exit interview, Hannover informed Mr Lo that his employment was being terminated for performance issues given he had disregarded the company's internal guidelines and policy. Instead of asking Mr Lo to work out his six months' notice period, Hannover opted to make a payment in lieu of notice. Mr....
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