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Hong Kong Case Law

Bonus calculation methodology
  • 22 Dec 2010

    ICAP (HONG KONG) LTD v. KWOK CHI LEUNG

    Citation
    ICAP (HONG KONG) LTD v. KWOK CHI LEUNG
    Court
    Court of First Instance
    Case number
    HCA637/2007

    Bonuses under the February 2005 revised contracts were contractual in nature (the word "discretionary" had been omitted and the bonus pool and distribution mechanism carried contractual content) but, construing the Ordinance in context, such bonuses are excluded from the meaning of "wages" for the purposes of s.7(2); alternatively, even if characterised as wages, the bonuses would have been wages that might have accrued rather than wages which would have accrued during the unserved notice period, so they are not recoverable under s.7(2). Consequently the plaintiff's statutory claims fail.