The about 600 Hong Kong employees of loss-making mobile-phone service Sunday Communications will lose their jobs if they do not accept new employment terms that include a salary cut of up to 25 per cent. After sacking 88 workers earlier this week, Hong Kong's smallest operator has delivered new contracts to its remaining workers which include a salary structure using a 'performance-based bonus system'. For general staff, the 13th month of salary will be cut from next year and bonuses will be based on company performance at year-end. Managerial grades will have 25 per cent of their salary based on performance, meaning fixed salaries will be cut by a quarter starting from next month. Employees are required to sign the new contract by December 23. Those who refused would find their 'employment will be terminated', group managing director Bruce Hicks said. On Tuesday, Sunday laid off 12 per cent of its workforce in an attempt to save about HK$36 million, or 15 per cent of its labour costs. Of the latest changes, one staff member said: 'What it seems to me is a salary cut. For those who say no, they will be fired.' Before the cuts, Sunday employed 607 people in Hong Kong. Its China staff of more than 200 will not be affected. Mr Hicks said those who rejected the offer and leave would be compensated above labour requirements. 'It is an important decision people have to make,' Mr Hicks said. Sunday has about 570,000 subscribers, and has reported an interim loss of HK$66.47 million, which includes a HK$10 million loss on joint venture Shell Mobile.