WONG HUEY LAN v. COLGATE-PALMOLIVE (HK) LTD.

WONG HUEY LAN v. COLGATE-PALMOLIVE (HK) LTD.

The LEIP payment was a contractual, formulaic end-of-year payment within section 11A because the employer\u2019s discretion was fettered by identifiable objective criteria (operating targets, appraisal ratings, and limited grounds for withdrawal) and therefore not "payable only at the discretion of the employer"; improper exercises of that discretion are reviewable, so statutory pro rata entitlement under s11F and non-excludability under s70 apply, entitling the claimant to the awarded sum.

Citation
WONG HUEY LAN v. COLGATE-PALMOLIVE (HK) LTD.
Parties
Claimant/respondent: WONG HUEY LAN; Respondent/appellant: COLGATE-PALMOLIVE (HK) LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
11 March 2002
Case Number
HCLA77/2001
Procedural Posture
Labour Tribunal Appeal (court of First Instance) / Appeal Judgment
Outcome
Appeal dismissed with costs
Legal Topics
End of Year Payment, Discretionary Bonus, Pro Rata Entitlement, Exercise of Contractual Discretion, Employment Ordinance Sections 11 a, 11 F, 70
Source Language
EN
Employment Law Contract Law Statutory Interpretation Labour Law End of Year Payment Discretionary Bonus Pro Rata Entitlement Exercise of Contractual Discretion +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 7 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

WONG HUEY LAN

Claimant/respondent

COLGATE-PALMOLIVE (HK) LIMITED

Respondent/appellant

Procedural Posture

Labour Tribunal Appeal (court of First Instance) / Appeal Judgment

Legal Issues

  1. 1 Whether the Local Employees Incentive Plan (LEIP) payment is an "end of year payment" within section 11A of the Employment Ordinance
  2. 2 Whether the LEIP payment is "payable only at the discretion of the employer" and thus excluded from statutory protection
  3. 3 Whether contractual clauses attempting to exclude pro rata entitlement are void under section 70

Ratio Decidendi

The LEIP payment was a contractual, formulaic end-of-year payment within section 11A because the employer\u2019s discretion was fettered by identifiable objective criteria (operating targets, appraisal ratings, and limited grounds for withdrawal) and therefore not "payable only at the discretion of the employer"; improper exercises of that discretion are reviewable, so statutory pro rata entitlement under s11F and non-excludability under s70 apply, entitling the claimant to the awarded sum.

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed with costs
  • Original Labour Tribunal award of $15,857 to the Claimant upheld