Must You Apply Disciplinary Procedures Before Terminating For Poor Performance?

In the recent Hong Kong High Court decision of Lam Chun Choi v. Standard Chartered Bank (Hong Kong) Limited (HCLA 15/2015), the Court held that the employer was obliged to apply its disciplinary procedures (the "Procedures") to an employee even though the employee's performance had already been the subject of a performance improvement plan (PIP). The case involved a point of contractual interpretation on when the Procedures must be applied to an employee.

Facts

The plaintiff was an underperforming employee of Standard Chartered Bank (the "Employer"). He was put on a PIP. At the end of the PIP period, the employee's performance remained short of the Employer's expected standards. The Employer then terminated the employee's employment by payment of wages in lieu of notice.