4. Compensation for unreasonable dismissal

Part VIA of the Employment Ordinance offers certain employment protection to employees. Where the employer is in breach, the employees may be entitled to an order of reinstatement or re-engagement, an award of terminal payments and an award of compensation. The award of compensation is discussed below.

An employee who wishes to claim for remedies must serve a written notice to the employer in respect of his claim within 3 months from the effective date of termination of employment or variation of contract.

An employee may be awarded compensation up to a maximum of $150,000 if he is unreasonably and unlawfully dismissed and no order for reinstatement or re- engagement is made by the Labour Tribunal.