News: Companies in Hong Kong will be charged on terminating employees with mental illness

Employee Relations

Companies in Hong Kong will be charged on terminating employees with mental illness

The companies can end up paying USD 6.5 Mn if the employee has been wrongfully terminated due to a mental health condition.
Companies in Hong Kong will be charged on terminating employees with mental illness

According to Disability Discrimination Ordinance, any Hong Kong company terminating an employee with a diagnosed mental health issue – such as anxiety or depression – will likely be required to pay compensation to that individual.

The reimbursement in such cases will cost companies at least USD 50,000 (HK$392,000), but can run as high as USD 6.5 Mn if the employee has been wrongfully terminated due to a mental health condition.

A recent study by Oliver Wyman, in partnership with the City Mental Health Alliance Hong Kong, revealed that one in three professionals have poor mental health, with the majority saying their employers do not have the resources to support them, and over a third saying they do not feel comfortable discussing their mental health at work.

“The topic of mental health in Hong Kong still remains shrouded in stigma and taboo, with few companies addressing the critical aspect of employee wellbeing in their organization and that’s got to change,” said Kathryn Weaver, partner and Head of Lewis Silkin Hong Kong.

According to another report, Mental Health at Work 2019 by Mind Share Partners reveals that 61 percent of workers said their productivity was impacted by their mental illness. The research also found that 37 percent of employees also felt that working environment contributes to their mental health.

One of the major causes why mental health goes unrecognized at workplace is the stigma attached to having a psychiatric disorder. Often employees are reluctant to talk about it and seek treatment — especially in the current economic climate — out of fear that they might jeopardize their jobs.

However, organizations need to be more empathetic about how employees feel and make an environment where more people come out in open about their mental health.

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Topics: Employee Relations

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