CHAN HOI CHI AND NOTHER v. CITY TELECOM (HK) LTD

CHAN HOI CHI AND NOTHER v. CITY TELECOM (HK) LTD

The High Court affirmed the Labour Tribunal's factual finding that the director's oral statements created a collateral agreement to apportion projected sales and calculate over-achieved bonus up to 31 May 1995; that factual finding was not a point of law error and therefore the appeal was dismissed, leaving the Labour Tribunal award for over-achieved bonus intact.

Citation
CHAN HOI CHI AND NOTHER v. CITY TELECOM (HK) LTD
Parties
1st Respondent/claimant: CHAN HOI CHI; 2nd Respondent/claimant: FONG CHI HO; Appellant/defendant: CITY TELECOM (HK) LTD
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 May 1996
Case Number
HCLA15/1996
Procedural Posture
Labour Tribunal Appeal / Judgment on Appeal (high Court)
Outcome
Appeal dismissed; Labour Tribunal decision affirmed
Legal Topics
Bonus Entitlement, Resignation and Contractual Rights, Variation of Employment Terms, Collateral/oral Agreement, Appeal on Point of Law
Source Language
EN
Employment Law Contract Law Labour Procedure Bonus Entitlement Resignation and Contractual Rights Variation of Employment Terms Collateral/oral Agreement Appeal on Point of Law

Case Brief

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Parties

CHAN HOI CHI

1st Respondent/claimant

FONG CHI HO

2nd Respondent/claimant

CITY TELECOM (HK) LTD

Appellant/defendant

Procedural Posture

Labour Tribunal Appeal / Judgment on Appeal (high Court)

Legal Issues

  1. 1 Whether employees were entitled to 'over-achieved bonus' calculated up to 31 May 1995 despite resigning before year end
  2. 2 Whether the employer's revised sales plan and its clause excluding payment on resignation superseded prior oral assurances
  3. 3 Whether an oral assurance by a director constituted a collateral agreement binding the employer

Ratio Decidendi

The High Court affirmed the Labour Tribunal's factual finding that the director's oral statements created a collateral agreement to apportion projected sales and calculate over-achieved bonus up to 31 May 1995; that factual finding was not a point of law error and therefore the appeal was dismissed, leaving the Labour Tribunal award for over-achieved bonus intact.

Court Disposition

Appeal dismissed; Labour Tribunal decision affirmed

Orders

  • Appeal dismissed
  • Labour Tribunal award for over-achieved bonus in favour of the claimants affirmed