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Hong Kong employment law update: Abolition of set off, labour tribunal expectations and sexual harassment
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Annual increase to employment compensation limits
As the seasons change, so do certain employment compensation limits as well as rates of pay. We have set out in this e-alert the key increases.
Tribunal compensation
From 6 April 2024:
- the maximum compensatory award for unfair dismissal will be the lower of 12 months' salary or £115,115 (up from £105,707).
- the limit on a week’s pay for the purposes of calculating statutory redundancy payments and basic awards for unfair dismissal will be £700 (up from £643).
- consequently, the maximum basic award for unfair dismissal and the maximum amount for statutory redundancy pay, both of which are calculated on a formula based on the employee's age, length of service and weekly pay, will be £21,000 (up from £19,290).
The new rates will apply where an individual's effective date of termination of employment falls on or after 6 April 2024.
National Minimum Wage
From 1 April 2024:
- the National Living Wage for workers aged 21 and over will increase to £11.44. Currently, the National Living Wage is payable only to those aged 23 and over (and is at a rate of £10.42). The threshold is being lowered to include all those aged 21 and over.
- the National Minimum Wage for those aged 20 to 18 (inclusive) will increase from £7.49 to £8.60.
- the National Minimum Wage for those under the age of 18 and the Apprentice Rate will increase from £5.28 to £6.40.
Family leave
From 7 April 2024*, the weekly rate for statutory paternity pay, statutory shared parental pay, statutory parental bereavement pay as well as statutory maternity pay and statutory adoption pay, after the first 6 weeks of leave, will be £184.03 or 90% of the employee’s average weekly earnings, whichever is lower.
*This date is taken from the gov.uk website for rates and thresholds for employers for 2024 to 2025.
