How to Write a Demand Letter for Unpaid Services in Hong Kong

Question from Ralph, How to Write a Demand Letter for Unpaid Services in Hong Kong

Answer from AI:

When dealing with a Hong Kong company that refuses to pay for services you provided as an independent contractor, writing a demand letter is a crucial first step. This letter serves as a formal request for payment and can also be used as evidence if legal action becomes necessary. Here’s a general guide on how to approach this situation, keeping in mind that consulting with a legal professional is advisable for personalized advice.

Understanding the Basics

A demand letter should be clear, concise, and professional. It outlines your position, the amount owed, and a deadline for payment. While there’s no one-size-fits-all template, certain elements are essential in every demand letter, especially within the context of Hong Kong’s legal framework.

Key Components of a Demand Letter

1. Header Information: Include your name, address, and contact information, followed by the date and the recipient’s name and address.
2. Subject Line: Clearly state the purpose of the letter. For example, “Demand for Payment for Contractual Services Rendered”.
3. Body:
   • Begin with a brief introduction of yourself and your relationship with the recipient.
   • Detail the services provided, including dates and any relevant contract or agreement numbers.
   • State the amount owed and reference any previous attempts to collect this payment.
   • Include a clear demand for payment by a specific date, typically 14 to 30 days from the letter’s date.
   • Mention that failure to comply may result in legal action, but avoid making any threats.
4. Conclusion: Reiterate your demand for payment and indicate your willingness to discuss the matter further to reach a resolution.
5. Signature: Sign the letter and print your name below the signature.

Legal Considerations

It’s important to understand that the laws governing contracts and payment disputes in Hong Kong may differ from those in other jurisdictions. The Hong Kong e-Legislation website is a valuable resource for accessing the relevant laws. For instance, the Cap 623 Companies Ordinance and the Employment Ordinance (Cap 609), while more focused on employment, can provide context on general contractual obligations and rights in Hong Kong.

After Sending the Letter

• Keep a copy of the letter and any delivery confirmation for your records.
• If the company responds, consider their offer carefully. You may wish to negotiate further or accept their proposal if it’s reasonable.
• If the company does not respond or refuses to pay, consulting with a legal professional to explore further actions, such as filing a claim in the Small Claims Tribunal (for claims under HKD 75,000) or pursuing other legal avenues, becomes essential.

Seeking Legal Advice

While this guide provides a general overview, each situation is unique. Legal advice can be invaluable, especially when navigating the complexities of contract law and the specifics of your case. A legal professional can offer personalized advice, assist with drafting the demand letter, and provide guidance on the next steps, including potential legal action.

Remember, the goal of a demand letter is not just to demand payment but to do so in a way that maintains professionalism and opens the door for resolution. It’s a delicate balance between asserting your rights and fostering a constructive dialogue.