CAPTAIN J V McCARTHY v. CATHAY PACIFIC AIRWAYS LIMITED and Another

CAPTAIN J V McCARTHY v. CATHAY PACIFIC AIRWAYS LIMITED and Another

The letters of 15 and 16 March 1994 created a binding agreement to include the pay increase in the Respondent's salary and provident fund calculations; the words 'without prejudice' did not negate contractual effect given the parties' intention and conduct; consequently the Appellant was bound and its deduction was unjustified.

Citation
CAPTAIN J V McCARTHY v. CATHAY PACIFIC AIRWAYS LIMITED and Another
Parties
Claimant/respondent: Captain J V McCARTHY; 1st Defendant: Cathay Pacific Airways Limited; 2nd Defendant/appellant: Veta Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 March 1996
Case Number
HCLA152/1995
Procedural Posture
Labour Tribunal Appeal to High Court / Judgment (hearing 18 March 1996, Delivered 18 March 1996)
Outcome
Appeal dismissed; award of the Labour Tribunal upheld
Legal Topics
Without Prejudice Correspondence, Formation of Contract by Correspondence, Deductions From Wages, Provident Fund Calculation, Employment Negotiations
Source Language
EN
Employment Law Contract Law Labour Law Industrial Relations Without Prejudice Correspondence Formation of Contract by Correspondence Deductions From Wages Provident Fund Calculation +1 more

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Parties

Captain J V McCARTHY

Claimant/respondent

Cathay Pacific Airways Limited

1st Defendant

Veta Limited

2nd Defendant/appellant

Procedural Posture

Labour Tribunal Appeal to High Court / Judgment (hearing 18 March 1996, Delivered 18 March 1996)

Legal Issues

  1. 1 Whether correspondence marked 'without prejudice' can constitute a binding contract
  2. 2 Whether the Appellant was bound by an agreement between the employee and Cathay Pacific Airways Ltd
  3. 3 Whether the unilateral deduction from the employee's wages was lawful and within statutory limits

Ratio Decidendi

The letters of 15 and 16 March 1994 created a binding agreement to include the pay increase in the Respondent's salary and provident fund calculations; the words 'without prejudice' did not negate contractual effect given the parties' intention and conduct; consequently the Appellant was bound and its deduction was unjustified.

Court Disposition

Appeal dismissed; award of the Labour Tribunal upheld

Orders

  • Appeal dismissed
  • Award of the Presiding Officer upheld