WHEN ANG POW & BONUS BECOME AN OBLIGATION: A CNY WAKE-UP CALL FOR EMPLOYERS

This digital HR podcast examines a significant Industrial Court ruling regarding whether employers are legally required to provide festive red packets to their staff. The case centered on a company that attempted to end a decades-long tradition of rewarding employees who worked during the Chinese New Year holiday. While the court acknowledged that such bonuses are typically at the employer’s discretion, it ultimately ordered the payment for that specific year due to established internal policies. This decision highlights that management’s power to withhold bonuses is not absolute once clear expectations have been set through official circulars. Consequently, businesses must be extremely cautious when drafting bonus schemes, as revoking a promised incentive can lead to legal liability. These findings serve as a warning that long-standing practices and written policies can create a binding commitment that overrides general discretionary rights.