Employment Spotlight: The law on demotions in Hong Kong

The employment team looks at some of the key issues and practical tips when considering demoting an employee in Hong Kong.

A demotion normally involves a reduction in rank or status, or a decrease in job responsibilities and/or salary. An employer may wish to demote an employee for a variety of reasons including poor performance, capability and/or as an alternative to termination.Regardless of the reason for the demotion, an employer should be careful when demoting an employee. Any demotion should be managed professionally and lawfully; failure to do so may expose the employer to an unwanted claim.

Employment Update: Increase of Paternity Leave to Five Days

Gall’s employment practice details the recent amendment to the Employment Ordinance Cap. 57 (“EO”), increasing paternity leave in Hong Kong from three days to five days.

The Employment (Amendment) (No. 3) Ordinance 2018 (“Amendment Ordinance”) was gazetted on 2 November 2018. Under the Amendment Ordinance, the statutory paternity leave under the Employment Ordinance Cap. 57 (“EO”) will increase from three days to five days.

Vincent Lee provides an analysis of The Supreme Court of the United Kingdom’s landmark decision on “No Oral Modification” Clauses and the practical implications on the parties to a commercial contract in Hong Kong.

It is common for parties to a commercial contract to insert a clause stating that “all variations to the contract must be agreed, set out in writing and signed on behalf of both parties before they take effect” (commonly known as a “No Oral Modification” or “NOM” clause). If the parties subsequently have a purported oral agreement to vary a particular term of the contract but do not say anything about the NOM clause, will such a variation be effective?