The Chinese University of Hong Kong

Faculty of Law

Term Two 2020-2021 Examination

Course code and title : LAWS6047 Principles of Employment Law

Release date and time : 29 April 2021, 6:30 pm

Due date and time : 29 April 2021, 10:00 pm

This paper has SEVEN (7) pages (including this cover page).

This is a TAKE HOME examination.

Instructions to candidates:
1. This examination paper consists of ONE (1) question. Answer THIS (1) question.
2. Answers must be typed using a computer and in English.
3. Your answer paper must show your student ID on the front page. Do not make any
reference to your name in your answer paper.
4. You may not discuss or collaborate with another person when completing this
examination. You may consult any other sources in preparing your final paper. Sources
are not restricted to those discussed in class.
5. Your answers must be your own work. When you use sources, cite them adequately for
identification. You are expected to know and abide by the University’s plagiarism
policy. Copying another person’s work or using language or ideas without proper
attribution is subject to disciplinary action, as appropriate, and can lead to your
failure of the course.
6. Your answer paper must be submitted to the CUHK VeriGuide system (“VeriGuide”)
at http://www.cuhk.edu.hk/veriguide and an academic honesty declaration form must
be generated by VeriGuide (“VeriGuide Slip”).
7. Submit your answer paper in PDF format together with the VeriGuide Slip from your
own CUHK student email account to culaw.submission@link.cuhk.edu.hk before the
deadline. Please indicate the course code and title in the subject line of your submission
email. The attachment file name of your answer paper should be: LAWS6047_[your
10-digit USID]_Answer (e.g., LAWS6047_1234567890_Answer); and the attachment
file name of your VeriGuide Slip should be: LAWS6047_[your 10-digit
USID]_VeriGuide (e.g., LAWS6047_1234567890_VeriGuide).
8. By submitting the VeriGuide Slip, you are deemed to have made the academic honesty
declaration included in the VeriGuide Slip. A failure to submit the VeriGuide Slip by
the deadline is regarded as an instance of late submission.
9. If either the answer paper or the VeriGuide Slip is submitted late but within the first 60
minutes after the deadline, the grade for the take-home paper will be capped at C.
10. If either the answer paper or the VeriGuide Slip is submitted late but within two
working days after the deadline, the grade for the take-home paper will be capped at D.
11. If either the answer paper or the VeriGuide Slip is submitted late for more than two
working days after the deadline, the take-home paper will receive a mark of zero and a
grade of F.

Page 1 of 7
You MUST complete this question (100 MARKS)

**For the purposes of this question, assume that the current date is 29th April 2021**

On 1st April 2011, Peter founded “Cheung Chau Bakery Limited” (“CCBL”) which he owned
and operated. CCBL operated a shop on Cheung Chau Island which sold bread, buns and other
baked goods. All of CCBL’s business was conducted through sales at its physical shop on
Cheung Chau Island. CCBL did not have any other shops nor did it conduct any online sales.

Peter hired a number of people to help operate the shop:

• Queenie, his daughter, worked as the assistant manager ever since the shop was
founded;

• Rachel (currently age 68) started working for CCBL as a shop assistant since 1st March
2016. A copy of Rachel’s contract with CCBL is attached (See Attachment A).

On 1st February 2021, Peter unexpectedly died from a health-related problem. As a result of
the inheritance from Peter, Queenie took over as owner and operator of CCBL. However,
Queenie wanted to run the business through her own company. She founded “Queenie’s
Bakery Limited” (“QBL”) and transferred the entire business from CCBL to QBL effective on
1st April 2021.

To help operate the shop, Queenie hired the following people:

• Rachel was hired by QBL as a shop assistant. On 1st March 2021, CCBL gave Rachel
one month’s notice of termination. At the same time, QBL gave Rachel a new contract
starting on 1st April 2021. A copy of Rachel’s contract with QBL is attached (See
Attachment B).

• Steve, Queenie’s husband, was hired by QBL as a shop assistant. Steve had recently
quit his job as an investment banker in order to fulfill his dream of becoming a poet.
Queenie offered him a contract to work at the shop with flexible hours so that he could
assist the shop when it needed help while still being able to keep writing poems. A copy
of Steve’s contract with QBL is attached (See Attachment C).

• Tanya was hired as a shop assistant and started working on 1st April 2021. A copy of
her contract with QBL is attached (See Attachment D).

Over the past few weeks, the shop had been very busy on the weekends as a lot of people came
to visit Cheung Chau ahead of the annual bun festival. Accordingly, on Friday, 23rd April 2021,
Queenie told Rachel, Steve and Tanya that they needed to work on Sunday, 25th April 2021.
Rachel, Steve and Tanya agreed to work on the 25th April 2021.

On 25th April 2021 (Sunday), the shop was very busy with many customers as expected by
Queenie. Tanya arrived at 9:30am. She apologized and said that she had set her phone to silent
by accident and the alarm did not go off. This was the first time she had been late.

At 11am, Tanya was taking an order from a customer for a dozen egg tarts for HK$72. Tanya
handed the box of egg tarts to the customer and the customer quickly handed some cash to
Tanya and ran out of the shop. When Tanya looked at the cash, she realized that the customer
Page 2 of 7

LAWS6047 Principles of Employment Law Term Two 2020/21

had given her toy money. Queenie saw what happened and shouted at Tanya and Steve “Tanya,
how could you be so careless? Catch that customer! Don’t let them steal the egg tarts!” Tanya
and Steve immediately ran out of the shop and chased the customer to the crowded ferry pier.
While chasing the customer, Steve accidentally ran into a tourist, Vivian, who fell over and
suffered injuries to her leg. Tanya and Steve saw the customer throw the box of egg tarts into
the ocean before disappearing into the crowds. Tanya and Steve helped Vivian to the nearby
hospital for treatment before returning to the shop empty handed. Queenie told Tanya that she
would deduct HK$72 from her wages since the egg tarts were lost due to her carelessness.

At 1pm that same day, Steve and Tanya were having their lunch break. Since everyone at the
shop had been working so hard that day, Steve and Tanya thought that it would be good fun to
play a prank on Rachel to cheer everyone up. Steve and Tanya bought some razor blades and
then returned to the shop. They put razor blades inside Rachel’s oven mitts because they
thought it would be funny to see her cut herself.

After lunch, Rachel came back from her lunch break and put on her oven mitts to carry out a
fresh batch of hot egg tarts from the oven. When she lifted up the heavy tray of egg tarts, one
of the razor blades cut into her fingers. Rachel screamed in pain and dropped the entire tray of
hot egg tarts onto her foot. Steve and Tanya laughed and mocked Rachel while she lay on the
ground screaming in pain while bleeding from her hands and foot. Queenie immediately had
Rachel taken to the hospital for treatment.

The next morning (26th April 2021), Queenie had a meeting with Steve and Tanya. Queenie
said that she could not overlook all of the problems that happened the day before. She told
Steve that he could keep his job because he was her husband but Tanya’s employment was
being terminated immediately without any further compensation.

Today, the following things happened:

1. Vivian’s solicitors have contacted Queenie claiming HK$35,000 in medical fees from
QBL for injuries caused to Vivian by Steve and Tanya.

2. Tanya returned to the shop to see Queenie:

(a) Tanya handed Queenie a notice of pregnancy and intention to take 10 weeks of
maternity leave starting from 1st December 2021;

(b) Tanya also claimed that Queenie had wrongly terminated her employment and
also said that it was wrong that only she got terminated and not Steve as well.

(c) Tanya demanded to be reinstated back to her job and if not, to give her all of
the outstanding employment benefits that were owed to her.

3. Rachel called Queenie and said that she was terminating her employment immediately
as she could not keep working in such conditions. Rachel asked Queenie for her
severance pay, annual bonus and any other employment entitlement that is owed to her.

Discuss any employment law issues arising from this problem question. (100 MARKS)

Page 3 of 7

LAWS6047 Principles of Employment Law Term Two 2020/21

 Attachment A

Employment Contract

This is a contract of service between Cheung Chau Bakery Limited (“CCBL”) and Rachel
Wong (the “Employee”).

1. The Employee will take on the position of Shop Assistant. The Employee will assist
with the smooth operation of the shop, dealing with customers and ensure that all
baked goods are properly prepared and presented. The Employee will be provided
with an apron with the Employer’s logo which must be worn at all times when
working.

2. The Employee’s remuneration will be HK$20,000 per month. The Employee’s

working hours will be Monday to Saturday from 9am to 1pm and 2pm to 6pm.
Sunday will be a rest day.

3. The Employee is entitled to an annual bonus as follows, provided that the Employee
is not under a notice of termination:

(a) A fixed sum of HK$1,000 to be paid on

(i) 1st April 2017;
(ii) 1st April 2018;
(iii) 1st April 2019;
(iv) 1st April 2020;

(b) Thereafter, a sum at the discretion of CCBL to be paid (if any) on the 1st
April of each year.

Signed: Peter Chan on behalf of CCBL

Date: 1st March 2016

Signed: Rachel Wong

Date: 1st March 2016

Page 4 of 7

LAWS6047 Principles of Employment Law Term Two 2020/21

 Attachment B

Employment Contract

This is a contract of service between Queenie’s Bakery Limited” (“QBL”) and Rachel Wong
(the “Employee”).

1. The Employee will take on the position of Shop Assistant commencing on 1st April
2021. The Employee will assist with the smooth operation of the shop, dealing with
customers and ensure that all baked goods are properly prepared and presented.
The Employee will be provided with an apron with the Employer’s logo which must
be worn at all times when working.

2. The Employee’s remuneration will be HK$20,000 per month. The Employee’s

working hours will be Monday to Saturday from 9am to 1pm and 2pm to 6pm.
Sunday will be a rest day.

Signed: Queenie Lee on behalf of QBL

Date: 1st March 2021

Signed: Rachel Wong

Date: 1st March 2021

Page 5 of 7

LAWS6047 Principles of Employment Law Term Two 2020/21

 Attachment C

Employment Contract

This is a contract of service between Queenie’s Bakery Limited (“QBL”) and Steve Lee (the
“Employee”).

1. The Employee will take on the position of Shop Assistant. The Employee will assist
with the smooth operation of the shop, dealing with customers and ensure that all
baked goods are properly prepared and presented. The Employee will be provided
with an apron with the Employer’s logo which must be worn at all times when
working.

2. There are no fixed hours however the Employee is required to work at least 18 hours
each week. The Employee will be paid HK$30 per hour, payable on the last day of
each month.

Signed: Queenie Lee on behalf of QBL

Date: 1st April 2021

Signed: Steve Lee

Date: 1st April 2021

Page 6 of 7

LAWS6047 Principles of Employment Law Term Two 2020/21

 Attachment D

Employment Contract

This is a contract of service between Queenie’s Bakery Limited (“QBL”) and Tanya Szeto
(the “Employee”)

1. The Employee will take on the position of Shop Assistant. The Employee will assist
with the smooth operation of the shop, dealing with customers and ensure that all
baked goods are properly prepared and presented. The Employee will be provided
with an apron with the Employer’s logo which must be worn at all times when
working.

2. The Employee’s remuneration will be HK$20,000 per month. The Employee’s

working hours will be Monday to Saturday from 9am to 1pm and 2pm to 6pm.
Sunday will be a rest day.

Signed: Queenie Lee on behalf of QBL

Date: 1st April 2021

Signed: Tanya Szeto

Date: 1st April 2021

*** LAST PAGE ***

*** END OF EXAMINATION PAPER ***

Page 7 of 7

LAWS6047 Principles of Employment Law Term Two 2020/21