Posted by
Aus_x_pat
16 yrs ago
I'm wondering if anybody can recommend someone/somewhere I can get advice on my employment contract, my employer has decided to change the financial terms only a couple of months after signing - despite me relocating and committing to a long term lease. I'd like to know if they are able to do this and what (if any) remedies may be available to me.
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They want to reduce the compensation amount outlined in the contract, it doesn't mention if they can do this, but it does say that they need to give 1 months notice (or pay in lieu) to cancel the contract... Can they just reduce my salary with immediate effect?
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ceeh
16 yrs ago
Hi Aus-x-pat. I am not a lawyer dealing in contract law but am an HR Manager and write the contracts for our staff.
No, the remuneration cannot be changed once a 'Letter of offer' has been given to you and/or the employment contract is signed. What a lot of companies do is break down the salary offered to salary and housing so that you are subject to less tax.
Once the employment contract has been signed it is a legal and binding contract.
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Are you talking about a pay cut? Employers in Hong Kong often do that even if there is no relevant clause in the contract.
Most contracts I signed in Hong Kong had a clause that the employer has the right to adjust the compensation under certain circumstances.
You can find out more about your rights in chapter 9 of the employment ordinance guide:
http://www.labour.gov.hk/eng/public/ConciseGuide.htm
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