HR in the Age of AI: Legal Risk Management and Compliance Strategies

Date and Time: 2026/06/11 | 09:30 - 17:30
Location: Chamber Theatre, 22/F United Centre
Language: Cantonese

Details

AI technologies are rapidly reshaping corporate human resources practices. From recruitment, performance management, compensation systems, to redundancy, restructuring, and employment contract revisions, organisations are now facing unprecedented legal challenges. This seminar is built upon the Hong Kong Employment Ordinance, Personal Data (Privacy) Ordinance, 2025 HKSAR Government Guidelines on Generative AI, PCPD’s 2025 Checklist for Employee Use of Generative AI, Hong Kong Discrimination Ordinances, common law principles, and key 2025 U.S. AI discrimination case law. It aims to equip corporations and HR professionals with the ability to: • Navigate the legal foundations for AI driven redundancy, restructuring, and benefits adjustments • Design forward looking employment contracts for the AI era • Manage legal risks in AI recruitment, AI assessment, and AI enabled employee monitoring • Address employee mental health concerns arising from AI anxiety and understand employer liabilities • Establish internal AI HR policies, risk assessment mechanisms, and governance frameworks Content 1. The Legal Landscape for HR in the AI Era: Opportunities, Risks and Regulatory Trends • Global vs Hong Kong AI adoption in HR - 65% of global companies already use AI in recruitment; Hong Kong only 23% - 40% of Hong Kong employees fear being replaced; 57% fear skill obsolescence • Latest AI regulatory developments in Hong Kong - HKSAR Government Guidelines on Generative AI Technologies and Applications (2025) - PCPD Checklist for Employee Use of Generative AI (31 March 2025) - AI risk classification: recruitment and performance assessment fall under “limited risk” - Implications for HR governance • Transformation of the HR role - From talent manager to AI risk governance leader - Three tier AI governance structure: policy, risk assessment, continuous monitoring 2. AI Driven Redundancy, Restructuring, Reassignment and Benefits Adjustment: Legal Risks & Compliance • Is AI driven redundancy considered “redundancy” under the Employment Ordinance? - Definition: business downturn, surplus manpower, departmental restructuring - Mainland case reference: AI automation ≠ lawful dismissal - 2024 Mainland judgments remain informative despite different legal systems • Duty to Mitigate (Common Law) - Reassignment and retraining are required steps before redundancy - Employers must show active efforts to explore alternative employment • Does AI induced job change amount to unreasonable variation of contract terms? - EO s.32K: five grounds for reasonable variation - AI driven workflow changes may constitute substantial change in job nature - Unilateral pay cuts or major duty changes require employee consent: Case Laws in Hong Kong • Discrimination risks in AI related restructuring - Transfer lists may constitute indirect discrimination - Objective and consistent selection criteria required • AI induced reduction of work and constructive dismissal - EO: If an employee is not assigned work for more than half of the working days in 4 weeks that may lead to lay-off - Reducing workload to force resignation may constitute constructive dismissal - AI has led to a reduction in workload to allow employees to quit on their own, which may constitute a constructive dismissal under the Employment Ordinance: Despite the basic compensation under the Employment Ordinance, employees are entitled to further claims for damages • Compensation and benefits restructuring in the AI era - AI assisted pay decisions and discrimination risks - Removal of MPF offset increases redundancy cost exposure 3. Employment Contract Updates for the AI Era: Forward Looking Clauses & Legal Safeguards • AI usage policy incorporated into employment contracts - No input of personal data into unauthorised AI tools - Employees must verify AI generated outputs - Breach may constitute serious misconduct • Reassignment and job modification clauses - AI adoption, restructuring, and technological upgrades justify reasonable adjustments - Common law: employer must maintain comparable terms and conditions : Case Laws in Hong Kong • Retraining obligations - Employees required to participate in AI related training - Supports employer’s fulfilment of the Duty to Mitigate • Compensation structure and variable pay clauses - Bonus, commission, and incentive schemes as discretionary (per HK case law) - AI influenced KPIs must retain human review - Use of prior consent clauses to allow employers to be flexible future adjustments of contractual terms and conditions : Case Laws in Hong Kong • Severance and restructuring clauses - Contract updates following the abolition of MPF offset 4. AI Recruitment, AI Interviewing, AI Assessment & Employee Monitoring: Legal Risks and Compliance • Discrimination risks in AI recruitment --Hong Kong anti discrimination laws fully apply --AI screening does not exempt employers from liability • Key U.S. 2025 class action case - Applicants aged 40+ alleged systemic AI discrimination - Court held employers remain responsible for AI decisions • AI monitoring and PDPO compliance - No personal data may be entered into unauthorised AI tools - Clear boundaries for lawful AI based employee monitoring • AI performance evaluation - Employees may request transparency of AI scoring - Human review is mandatory; AI cannot autonomously determine final ratings 5. AI Induced Anxiety, Mental Health and Employer Liability • Legal characterisation of AI anxiety - 40% of employees fear AI replacement - Stress alone is not a claimable injury under HK case law – Case Laws in Hong Kong - Must amount to a diagnosable mental disorder (e.g., depression, anxiety, adjustment disorder) – Case Laws in Hong Kong • Employees’ Compensation Ordinance limitations and Challenges - Mental illness is not an occupational disease - AI related anxiety usually not an “accident” - 2025 District Court case: targeted remarks by supervisors may constitute an accident • Common law negligence - Whether employer fulfilled Duty of Care and reasonable precautions : Case Laws in Hong Kong - Occupational Safety and Health Ordinance obligations • Disability Discrimination Ordinance - Mental illness and recovered persons are protected - Employers must not treat them less favourably – Case Laws in Hong Kong • Practical employer responses - Transparent AI communication - Retraining and redeployment - Psychological support systems - Reasonable accommodation (per EOC 2025 guidelines) 6. Corporate AI Internal Policies, Risk Assessment & Governance Framework (Including ISO 42001) : Implications to HR Management • ISO 42001 – the world’s first AI Management System (AIMS) standard - Provides structured requirements for establishing, implementing, maintaining and improving AI governance • Six key areas of AI internal policies - Scope of use - Data input/output - Bias prevention - Data security - Consequences of non compliance - Support and training • How HR can contribute to employee handbook updates - Integrating AI usage rules - Embedding governance and accountability mechanisms - Aligning HR practices with ISO 42001 standards ________________________________________________________________________________ Follow us on LinkedIn: HKGCC Training Academy ________________________________________________________________________________

Speaker

Raymond Fung, Principal Consultant, Strategic Consulting Ltd

Raymond Fung has implemented various human resources management projects for over 290 US, European and Mainland corporate clients in the past 25 years. He has assisted clients in handling a large number of human resources disputes and litigations with their legal teams in the Labour Tribunal, District Court and High Court, supported by his deep understanding of the law concerning human resources. Raymond has conducted over 300 public seminars on human resources related laws in the past 25 years. He has taught in many enterprises, local and overseas universities, tertiary institutions and professional organizations. He has trained more than 82,000 managerial staff and professionals, and is a three-time winner of the Award for Excellence in Training and Development. Raymond graduated from two prestigious universities in the UK and holds a double Master’s Degree in Industrial Relations, and a Master’s Degree in Business Administration. He was the Director of Training, Director of Human Resources, and General Manager of listed companies, and possesses extensive experience in human resources and corporate management.

Enquiries

Cathy Chan

Tel:: 28231282
Email:: [email protected]

Notes

- Bookings are only confirmed upon receipt of payment, on a first come first served basis. - Booking transfer is allowed for corporate members with advanced notice, walk-ins are normally not accepted. - The Chamber reserves the right to decline any booking or cancel the event. In such case, a full refund of the participation fee will be issued. - No refund will be made for last minute cancellations or no-shows. If the booking is cancelled at least 7 days before the event, and in such cases the refund will be subjected to a 10% administration fee, or HK$100 deduction, whichever is higher. - Members paying with their BOC HKGCC Visa Card will enjoy a 30% discount on their reservation. The discount is only applicable to the card holder, and does not extend to their guests. The discount cannot be used in conjunction with Chamber Coupons. - A $60 handling fee per person will be charged for all offline bookings (e.g. fax, e-mail, post) for all Chamber events. Go online today by downloading our app or registering on the HKGCC website to save the environment and money. - Priority is given to corporate members. The decision to accept or decline any booking shall be at sole discretion of the Chamber. - The Chamber reserves the right to take photos and/or video recordings during the event. By attending, participants agree to the Chamber doing so, and that the Chamber may use such materials for archival, publicity, and marketing purposes. - Participants agree to indemnify the Chamber and the hosting party all liabilities for property damage, physical injury or death in relation to this event. Participants are advised to take their own insurance against all risks.

Disclaimer

Speakers' presentations at this event are intended for educational purposes only and do not replace independent professional judgment. Statements of fact and opinions expressed during this event are those of the speakers and participants and, unless expressly stated to the contrary, are not the opinion or position of the Hong Kong General Chamber of Commerce, its members, or its committees. The Chamber does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented. Attendees should note that, with the approval of speakers, this event may be recorded, and possibly published on the Chamber's website in audio and/or video formats without further notice.

Recording, duplication or distribution of the contents of the online event is prohibited without prior written permission from the Chamber.

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Notes

Disclaimer