Is there any situation whereby an employee can terminate a contract of service without notice or payment in lieu of notice?

Yes. An employee may terminate his employment contract without notice or payment in lieu of notice if

(a) he reasonably fears physical danger by violence or disease;

(b) he is subjected to ill-treatment by the employer; or

(c) he has been employed for not less than 5 years and he is certified by a registered medical practitioner as being permanently unfit for the type of work he is engaged.

Source: HKGOV Labour Department