The number of prosecutions against employers and HR departments for failing to comply with leave entitlements under the Employment Ordinance (Cap. 57) (“the Ordinance”) has risen significantly in recent years. At the same time, in the current economic climate, some employees may exploit loopholes to abuse leave benefits, causing HR difficulties and undermining a positive and engaged workplace culture.
This programme explains key principles based on major court decisions, including recent landmark cases. It clarifies grey areas in the Ordinance and provides guidance for management and HR on how to lawfully and effectively handle complex, contentious and high-risk leave issues.
A total of 43 leave-related legal controversies will be examined. The speaker will also provide multiple leave-policy templates drafted with reference to case law..
Sick Leave
1. When an employee takes 4 days of sick leave covering Saturday and Sunday, should rest days be counted as 4/5 or 5/5? Can statutory sick leave be deducted?
2. An employee dismissed during unpaid sick leave argues—based on a High Court case—that it should have been treated as paid sick leave and therefore unlawful dismissal. What is the legal rationale, and how can employers mitigate such risks?
3. For monthly‑paid employees on no‑pay sick leave, are rest days and statutory holidays still paid? How should policies be designed to prevent abuse?
4. If a fixed‑term contract ends while the employee is still on long‑term paid sick leave, does choosing not to renew constitute a breach of section 33(4B) prohibiting dismissal during paid sick leave?
5. Under the 4‑68 amendment, part‑time employees taking more than two days of sick leave must have such leave counted as working hours. How should HR comply?
6. Key considerations when calculating sick leave for daily‑rated or piece‑rated employees under continuous contracts.
7. With rising mental‑illness‑related litigation, how should employers handle poor‑performing employees who claim mental illness and avoid breaching the Disability Discrimination Ordinance?
8. How to address and lawfully terminate employees who take habitual or frequent sick leave without constituting unreasonable dismissal?
9. How should employers deal with employees attempting to reclassify past sick leave as “work‑injury sick leave”? What does case law suggest?
10. How can employers lawfully dismiss habitual or long‑term sick‑leave employees without contravening the Employment Ordinance or Disability Discrimination Ordinance? How to pass legal “stress tests”?
11. An employee is summarily dismissed upon returning to work, leaves citing sick leave, then submits a medical certificate requesting withdrawal of the dismissal. How do courts assess such cases?
12. During the notice period, an employee frequently takes sick leave affecting handover. What may the employer do? Can contractual sick‑leave benefits be withdrawn?
13. An employee who resigns then discovers a long‑term illness requests to retract the resignation. May the employer refuse? Would refusal breach discrimination laws?
Work Injury Sick Leave
14. After dismissal with payment in lieu, an employee claims injury while exiting the building and reports a work injury, requesting reinstatement. How should HR handle this to avoid litigation?
15. How to lawfully manage suspected work‑injury cases or employees who consult multiple doctors to prolong injury leave?
16. In a 2025 High Court case, an employee was inadvertently dismissed during work‑injury sick leave, yet the employer successfully defended unlawful and unreasonable dismissal claims. What were the legal grounds?
17. Claims of psychological injury arising from work pressure or bullying are increasing. How do courts assess such claims, and how should employers prepare a defence?
18. After a year of work‑injury sick leave, an employee returns. How should employers fulfil the duty of care, including light‑duty arrangements? If the employee cannot resume original duties, what is the legal basis for salary adjustment?
19. After two years of work‑injury sick leave, can an employer lawfully refuse reinstatement?
20. After being dismissed, an employee claims a work injury from the previous week and requests withdrawal of termination. How do courts handle similar cases?
21. After injury assessment results are issued, if an employee objects within the 14‑day statutory window and requests reinstatement or additional sick leave, must the employer approve?
Annual Leave
22. How can employers lawfully forfeit unused annual leave?
23. If an employee is late, may the employer deduct annual leave entitlement?
24. When annual leave is taken, may employers deduct from statutory annual leave first?
25. Does annual leave spanning Saturday and Sunday still count as seven consecutive days? What do recent prosecutions illustrate?
26. Why must contractual annual leave still follow the 713 calculation method if the employer has not explicitly defined an alternative?
27. The Court of Final Appeal ruled that employees may use unused annual leave during the notice period. Why can employers not impose this without consent?
28. Does varying contractual annual leave require employee consent? How can employers better protect themselves?
29. When an employee takes 15 days of advance annual leave then resigns early, why is deducting the overpaid annual‑leave wages from final pay unlawful? What should HR do instead?
Statutory Holidays / Statutory Annual Leave / Overtime / Substituted Leave
30. Employees often claim they were “forced” to work on rest days or statutory holidays after leaving employment, leading to civil claims and possible criminal liability. How can employers prove “voluntary work” and develop compliant overtime/substituted‑leave policies?
31. Differences between rest‑day substitution and overtime compensation; how to manage them lawfully.
32. Can employment contracts state that overtime is expected and no substituted leave will be provided (other than for statutory holidays)? For which roles is this lawful according to case law?
33. If employees must remain on standby at home on rest days or statutory holidays, must employers compensate? What does Court of Final Appeal precedent say?
34. Why must part‑time employees who work on statutory holidays be given separate (unpaid) compensation holidays?
Maternity Leave
35. If an employee discovers pregnancy during the notice period after resigning, may she withdraw the resignation? Can the employer refuse? What do cases suggest?
36. Common issues and disputes relating to maternity‑leave entitlements.
37. What are the legal requirements for summarily dismissing a pregnant employee for poor performance?
38. Can a part‑time employee who has already declared her pregnancy be lawfully dismissed?
No-pay Leave
39. How should employers lawfully arrange and handle no‑pay leave applications?
40. If an employee takes four days of no‑pay leave in a week, are statutory and contractual rest days still paid?
41. How should HR handle entitlements during long periods of no‑pay leave (e.g., two months)? How should rest days, statutory holidays, annual leave, bonuses, year‑end payments and sick leave be treated?
Other Controversial Leave Issues
42. How can employers lawfully reduce labour costs when calculating the 12‑month average wages for different leave entitlements?
43. How to formulate comprehensive policies for work injury, sick leave, annual leave, compensatory leave and no‑pay leave that safeguard employer interests? (Five policy templates will be provided.)
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