Chanel asks Hong Kong employees to resign or take no-pay leave

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To mitigate significant loss of business due to the pandemic, Chanel has offered employees in Hong Kong three options. They can voluntarily resign or take no-pay leave for four months or halve their working hours.

However, Chanel cannot guarantee whether they will renew employees' contract. Hundreds of Chanel employees are likely to be affected by this decision. 

The human resources department started meeting front-line sales officers last week. For those who agree to voluntarily resign, they will receive one-month base salary. For those who reject the proposal, they will take a four-month no-pay leave, effective immediately - while some employees opted to change their contract, cutting their weekly working hours by half, to 20 hours. 

The luxury brand told Oriental Daily that the company needs to review its operation due to the current situation and the gloomy economic outlook. The move is just a temporary arrangement and it aims to safeguard the future of employees' career journey, the newspaper reported. 

In May, Chanel notified all employees in Hong Kong that it would halt its recruitment plans.