In the case Dock Brian v. Pacific Gourmet Holdings Ltd [2022] HKCFI 444, the Hong Kong Court of First Instance (CFI) heard an appeal from the Labour Tribunal (LT) concerning a purported settlement agreement that the Employee entered into on termination of employment. The CFI found that the LT had erred in law by holding that it had no jurisdiction to hear the case on the ground that the dispute concerned a 'settlement agreement'.
Background
The employee was employed as a member of the Employer's food service staff until his employment was terminated in April 2021 with one month's notice. The employee claimed that he was dismissed because he refused to sign an agreement to increase his work hours. On the day he was given his last month's salary and accrued holiday pay, he was asked to sign a document dated 28 April 2021 (28/4/2021 Document), which stated:
"I checked the above calculation and hereby confirmed the final payment of my remuneration is correct and also confirmed there is no other outstanding amount owing to me by the company."
The employee signed the 28/4/2021 Document.
The LT's Decision
The employee commenced proceedings in the LT claiming that he was dismissed with no valid reason or by reason of redundancy which entitled him to severance payment, terminal payment and/or damages under the Employment Ordinance (EO). He claimed a total sum of around HK$142,700.
The LT held that the 28/4/2021 Document was on its face a valid settlement agreement, and that it...
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