Letter of Demand (Hong Kong)
LETTER OF DEMAND
Date: [Letter Date] To: [Recipient Name] [Recipient Address] From: [Sender Name] [Sender Address] Email: [Sender Email] Tel: [Sender Contact] Dear [Recipient Name],
Background
We write in relation to the following matter: [Claim Background].
Demand
We hereby formally demand payment of HKD [Amount Claimed] (the "Claimed Amount") on the basis of: [Legal Basis]. We attach the following supporting documents: [Supporting Docs].
Deadline and Consequences
Unless we receive payment of the Claimed Amount in full within [Demand Deadline Days] days of the date of this letter, we reserve the right to commence legal proceedings against you in the appropriate Hong Kong court or tribunal without further notice. In such proceedings we will also seek interest, legal costs, and all other remedies available to us under Hong Kong law. The Limitation Ordinance (Cap. 347) provides a six-year limitation period for contractual claims.
Resolution
We remain open to resolving this matter without litigation. If you wish to discuss payment or dispute this claim, please contact us within the above deadline.
Sender
________________
Signature
What Is a Letter of Demand (Hong Kong)?
A Letter of Demand in Hong Kong sets out the writer's position and the response or action requested from the recipient.
The Limitation Ordinance (Cap. 347) is the central statute shaping the timing of Letters of Demand in Hong Kong. Under Section 4 of the Limitation Ordinance (Cap. 347), a creditor has six years from the date a simple contract debt falls due to commence proceedings — the Letter of Demand itself does not pause this period. Only filing a writ or originating summons in the Court of First Instance, or a claim in the District Court or Small Claims Tribunal, interrupts limitation. Practitioners therefore advise sending a Letter of Demand well before the six-year period expires, leaving time for a response and negotiation before proceedings must be filed.
For insolvency-related debt recovery, the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) and the Bankruptcy Ordinance (Cap. 6) provide escalation pathways following an unanswered Letter of Demand. A statutory demand under Section 178 of Cap. 32 against a corporate debtor, or under Section 6 of Cap. 6 against an individual, triggers the formal insolvency process if unpaid within 21 days.
Employment disputes governed by the Employment Ordinance (Cap. 57) are a major category of Letter of Demand use in Hong Kong. Employees claiming unpaid wages under Section 23, severance payment under Section 31, or annual leave pay under Section 41 of the Employment Ordinance (Cap. 57) routinely send formal demand letters before approaching the Labour Department's conciliation service or filing in the Labour Tribunal under the Labour Tribunal Ordinance (Cap. 25). The Letter of Demand creates a written record of the claim date, which is material for calculating the limitation period under Section 4 of the Limitation Ordinance (Cap. 347).
Property and landlord-tenant disputes under the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) and the Conveyancing and Property Ordinance (Cap. 219) also generate substantial Letter of Demand usage in Hong Kong — landlords demanding unpaid rent, tenants demanding return of deposits, and property buyers demanding performance of sale and purchase agreements all use the Letter of Demand as their first formal legal step.
The forms-legal.com Letter of Demand template for Hong Kong is structured to meet the requirements of Hong Kong legal practice: clear identification of parties, precise statement of the claim and legal basis, demand for a specific sum in HKD, a defined compliance deadline, and a reservation of all legal remedies. Practice Direction 31 issued by the Judiciary of the HKSAR governs mediation referrals in civil proceedings and encourages parties to attempt mediation before or during litigation. A Letter of Demand that proposes mediation demonstrates good faith that courts reward in costs orders under Order 62 of the Rules of the High Court (Cap. 4A). Interest on judgment debts accrues at the judgment rate prescribed under Section 49 of the High Court Ordinance (Cap. 4). Section 23 of the Employment Ordinance (Cap. 57) fixes the date on which wages must be paid, making that date the accrual date for limitation purposes under Section 4 of the Limitation Ordinance (Cap. 347).
When Do You Need a Letter of Demand (Hong Kong)?
A Letter of Demand in Hong Kong is needed whenever a party wishes to formally assert a legal claim against another party before commencing proceedings in the Court of First Instance, District Court, Labour Tribunal, Small Claims Tribunal, or other Hong Kong adjudicative body.
Debt recovery is the most common use. When a business or individual is owed money under a contract, invoice, or loan agreement governed by Hong Kong law, a Letter of Demand is the standard first step — establishing the debt on the record, setting a compliance deadline, and demonstrating pre-action good faith to the court when costs are assessed under Order 62 of the Rules of the High Court (Cap. 4A).
Employment claim disputes require a Letter of Demand when an employer fails to pay wages on the date they fall due under Section 23 of the Employment Ordinance (Cap. 57), fails to pay statutory severance payment under Section 31, or fails to provide annual leave pay under Section 41. The Labour Department's conciliation service and the Labour Tribunal under the Labour Tribunal Ordinance (Cap. 25) both expect to see that a direct demand was made before the formal claim was filed.
Landlord and tenant disputes under the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) commonly involve Letters of Demand: from landlords demanding unpaid rent, from tenants demanding return of rental deposits following vacation of the premises, and from property owners demanding reinstatement of premises to their original condition after the tenancy ends.
Construction payment disputes under the Construction Industry Security of Payment Ordinance (Cap. 649) require payment claims to be made in writing — a Letter of Demand forms part of the payment claim process and precedes adjudication or court proceedings for sums certified under construction contracts.
Insolvency proceedings in Hong Kong require a Letter of Demand before serving a statutory demand under Section 178 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) against a corporate debtor, or under Section 6 of the Bankruptcy Ordinance (Cap. 6) against an individual debtor. Courts scrutinise whether prior demands were made before granting winding-up or bankruptcy orders.
Intellectual property infringement claims — copyright under the Copyright Ordinance (Cap. 528), trade mark under the Trade Marks Ordinance (Cap. 559), and passing off under common law — commonly begin with a cease-and-desist letter that incorporates a Letter of Demand for damages, account of profits, or both.
Professional negligence claims against Hong Kong-registered solicitors, accountants, architects, or engineers typically require a pre-action Letter of Demand giving the professional an opportunity to respond before proceedings are filed in the Court of First Instance.
What to Include in Your Letter of Demand (Hong Kong)
A Letter of Demand for Hong Kong must include specific elements to be effective as a legal document and to satisfy the procedural expectations of Hong Kong courts and tribunals across all claim categories.
Sender identification: The full legal name of the claimant (individual, partnership, or company registered under the Companies Ordinance (Cap. 622)), their HKID number or Companies Registry number, and their address for correspondence. Where the demand is sent through a Hong Kong law firm, the firm's name, address, Law Society of Hong Kong reference, and the file reference should appear on letterhead.
Recipient identification: The full legal name and last known address of the respondent — a critical requirement because service of legal proceedings follows the address stated in pre-action correspondence. For company respondents, the registered office address on the Companies Registry should be used to confirm proper notice.
Date: The precise date of the letter, which determines the start of the compliance deadline and may affect limitation period calculations under the Limitation Ordinance (Cap. 347).
Factual background: A concise, accurate statement of the facts giving rise to the claim — the contract or obligation, the date of breach, the amounts due, and the respondent's failure to pay or perform. Accuracy is essential because the demand letter may be presented to the Court of First Instance, District Court, or tribunal as evidence of the pre-action position.
Legal basis: Identification of the specific legal ground for the claim — breach of contract under common law, unpaid wages under Section 23 of the Employment Ordinance (Cap. 57), unpaid rent under the Landlord and Tenant (Consolidation) Ordinance (Cap. 7), or another applicable statutory or common law basis.
Monetary demand: A specific sum stated in Hong Kong dollars (HKD), with a breakdown of principal, interest (if applicable), and any other components. For interest claims, the applicable rate and the period for which interest accrues should be stated — courts in Hong Kong award interest under Section 49 of the High Court Ordinance (Cap. 4) at judgment rate from the date of the demand.
Compliance deadline: A clear date by which the respondent must pay or perform — typically 7 to 14 days from the date of the letter in commercial disputes, or as prescribed by applicable practice directions.
Consequences of non-compliance: A statement that failure to comply within the stated deadline will result in the commencement of proceedings in the appropriate Hong Kong court or tribunal — the Court of First Instance for claims above HKD 3,000,000, the District Court for claims between HKD 75,000 and HKD 3,000,000, or the Small Claims Tribunal for claims up to HKD 75,000 — without further notice.
Related documents: A Letter of Demand is typically accompanied by or followed by a Loan Agreement, Service Agreement, or Employment Contract that evidences the underlying obligation. Consider also the Statutory Demand form under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) for corporate debtors. The forms-legal.com library includes all related Hong Kong document templates.
Reservation of rights: A standard clause reserving all the sender's legal rights and remedies, including the right to claim costs and interest, without prejudice to the positions taken in the demand.
Sources & Citations
Statutory citations link to official government sources.
- The Limitation Ordinance (Cap. 347)HK official
- Limitation Ordinance (Cap. 347)HK official
- Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32)HK official
- Bankruptcy Ordinance (Cap. 6)HK official
- Employment disputes governed by the Employment Ordinance (Cap. 57)HK official
- Employment Ordinance (Cap. 57)HK official
- Labour Tribunal under the Labour Tribunal Ordinance (Cap. 25)HK official
- Landlord and Tenant (Consolidation) Ordinance (Cap. 7)HK official
- Conveyancing and Property Ordinance (Cap. 219)HK official
- High Court Ordinance (Cap. 4)HK official
- Construction Industry Security of Payment Ordinance (Cap. 649)HK official
- Copyright Ordinance (Cap. 528)HK official
- Trade Marks Ordinance (Cap. 559)HK official
- Companies Ordinance (Cap. 622)HK official
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Letter of Demand (Hong Kong) (Hong Kong) [Legal document template]. Forms Legal. https://forms-legal.com/hong-kong/business/letters/letter-of-demand-hong-kong
"Letter of Demand (Hong Kong) (Hong Kong)." Forms Legal, 2026, https://forms-legal.com/hong-kong/business/letters/letter-of-demand-hong-kong.
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note = {Free legal document template. Based on Companies Ordinance (Cap. 622)}
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Frequently Asked Questions
A Letter of Demand is not invariably required as a mandatory precondition before commencing legal proceedings in Hong Kong, but sending one is strongly expected by the courts and frequently decisive on costs. The Hong Kong courts — including the Court of First Instance of the High Court, the District Court, and specialist tribunals such as the Labour Tribunal and Small Claims Tribunal — operate under the principle that parties should make genuine efforts to resolve disputes before resorting to litigation. Order 62 of the Rules of the High Court (Cap. 4A) gives courts broad discretion to award costs against a successful claimant who failed to give adequate pre-action notice, even where the claim succeeds on its merits. For personal injury claims, the Practice Direction on Personal Injuries Actions issued by the Judiciary of the HKSAR sets out pre-action protocol steps including exchange of medical records and a formal demand before issuing a writ. For construction disputes, parties are encouraged to follow adjudication procedures under the Construction Industry Security of Payment Ordinance (Cap. 649) before litigating, and a written demand for payment is the usual first step. For employment claims brought before the Labour Tribunal under the Employment Ordinance (Cap. 57), a prior written demand to the employer is advisable as the Labour Tribunal Registry expects to see evidence of pre-claim efforts.
A properly drafted Letter of Demand for use in Hong Kong courts and tribunals must include specific elements to be effective as a legal document and to satisfy judicial expectations on pre-action correspondence. The sender's full legal name, address, and contact details must appear clearly. If the sender is a company registered under the Companies Ordinance (Cap. 622), its Companies Registry number and registered office should be stated. The recipient's full legal name and last known address must be accurately stated — errors in addressing can give the recipient grounds to dispute receipt. The date of the letter is critical because it marks the commencement of any deadline given for compliance and may be relevant to limitation period calculations under the Limitation Ordinance (Cap. 347). A clear and concise statement of the factual background — the contract or obligation breached, the date of breach, and the specific amount owed in HKD — must follow. The legal basis for the claim should be identified: breach of contract under common law, statutory debt under the Employment Ordinance (Cap. 57) for unpaid wages, unpaid rent under the Landlord and Tenant (Consolidation) Ordinance (Cap. 7), or another applicable legal basis. Supporting documents such as invoices, contracts, correspondence, or receipts should be listed and attached as annexures. A specific monetary demand stated in HKD, or a demand for specific performance of an identified obligation, must be clearly set out.
The Limitation Ordinance (Cap. 347) sets the time limits within which legal proceedings must be commenced in Hong Kong — a Letter of Demand alone does not stop time running, and only the commencement of court proceedings interrupts the limitation period. Under section 4 of the Limitation Ordinance (Cap. 347), the limitation period for a simple contract claim — including claims for unpaid debts, unpaid invoices, and breach of service agreements — is six years from the date the cause of action accrued, which is typically the date of breach or the date payment fell due. For claims founded on a specialty (a deed under seal), section 4(3) of the Limitation Ordinance (Cap. 347) extends the period to twelve years. Personal injury claims are subject to a three-year limitation period under section 27 of the Limitation Ordinance (Cap. 347), running from the date of injury or the claimant's date of knowledge of the injury and its cause, whichever is later — with the court retaining a discretion to extend this period under section 30. Employment claims under the Employment Ordinance (Cap. 57) for statutory entitlements such as severance pay, long service payment, and annual leave pay are subject to the general six-year limitation period, though the Labour Department recommends filing claims with the Labour Tribunal as promptly as possible. Stamp duty claims by the Inland Revenue Department (IRD) are subject to a six-year limitation period under the Stamp Duty Ordinance (Cap. 117).
When a recipient ignores a Letter of Demand in Hong Kong, the sender has several escalation options depending on the nature and size of the claim, each governed by specific procedural rules. For debt claims up to HKD 75,000, the Small Claims Tribunal — established under the Small Claims Tribunal Ordinance (Cap. 338) — provides a cost-effective, lawyer-free forum where the claimant files a claim form and the Tribunal adjudicates the dispute. For claims between HKD 75,000 and HKD 3,000,000, the District Court — operating under the District Court Ordinance (Cap. 336) — has jurisdiction. Claims above HKD 3,000,000 proceed in the Court of First Instance of the High Court under Order 2 of the Rules of the High Court (Cap. 4A). Employment claims for wages, statutory entitlements, and wrongful termination proceed before the Labour Tribunal under the Labour Tribunal Ordinance (Cap. 25), regardless of amount. For undisputed corporate debts of HKD 10,000 or more, the creditor may serve a statutory demand under section 178 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32), which — if unpaid within 21 days — creates a rebuttable presumption that the company is unable to pay its debts, enabling the creditor to petition the court for compulsory winding-up. For individual debtors, a bankruptcy petition may be presented under section 6 of the Bankruptcy Ordinance (Cap. 6) after a statutory demand for HKD 10,000 or more goes unpaid for 21 days.
A Letter of Demand is widely used in Hong Kong employment disputes as the standard pre-claim communication before an employee or employer files a claim with the Labour Tribunal or approaches the Labour Department for conciliation. The Employment Ordinance (Cap. 57) — the primary statute governing employment relationships in Hong Kong — entitles employees to various statutory payments including wages under section 23, annual leave pay under section 41, sick leave pay under section 33, severance payment under section 31 of the Employment Ordinance (Cap. 57), and long service payment under the Long Service Payment Ordinance (Cap. 57, Part VA). When an employer fails to make these statutory payments, an employee's letter of demand identifying the specific section of the Employment Ordinance (Cap. 57) under which the payment is claimed, the calculation method, and the specific amount due in HKD creates a formal record of the claim and the employer's response (or non-response). The Labour Department's Labour Relations Division provides conciliation services before Labour Tribunal proceedings: sending a Letter of Demand first demonstrates that the claimant has attempted to resolve the matter directly. The Labour Tribunal Ordinance (Cap. 25) gives the Labour Tribunal exclusive jurisdiction over employment claims, and tribunal adjudicators expect to see pre-hearing demand correspondence.
A Letter of Demand and a statutory demand in Hong Kong serve related but distinct legal purposes, and confusing the two can have serious procedural consequences. A Letter of Demand is a flexible pre-action document — not prescribed by any single statute — that formally notifies the recipient of the sender's claim, demands payment or performance, and warns of legal action. The form and content are dictated by legal practice and the requirements of the relevant court or tribunal, rather than by a single ordinance. A statutory demand, by contrast, is a prescribed formal notice under specific Hong Kong insolvency legislation. Under section 178 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32), a statutory demand served on a company debtor creates a legal presumption of inability to pay debts if the company fails to pay, secure, or compound the debt to the creditor's satisfaction within 21 days. This enables the creditor to petition the Court of First Instance for compulsory winding-up under section 177 of the same ordinance. Under section 6 of the Bankruptcy Ordinance (Cap. 6), a statutory demand served on an individual debtor for an amount of not less than HKD 10,000 triggers the same 21-day window, after which the creditor may present a bankruptcy petition to the court. The statutory demand must be in the prescribed form set out in the Companies (Winding Up) Rules (Cap. 32H) or the Bankruptcy Rules (Cap.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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