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WEDNESDAY, MARCH 8, 1989

TO

MRS SO HAD ASKED WHETHER EXISTING LEGISLATION WAS ADEQUATE TO ENABLE EMPLOYEES IN HONG KONG TO RECOVER ARREARS OF WAGES OR SEVERANCE PAY IN CASES WHERE EMPLOYERS DELIBERATELY ATTEMPTED EVADE SUCH PAYMENTS WHEN MOVING THEIR FACTORY OPERATIONS INTO CHINA.

MR BRIDGE SAID THE LEGISLATION PROVIDED FIVE REMEDIES. THEY

WERE:

IF THE EMPLOYER WAS STILL SOLVENT BUT DID NOT PAY THE WAGES, HE COULD BE PROSECUTED UNDER SECTION 63A (1) OF THE EMPLOYMENT ORDINANCE.

ANY EMPLOYEE WHO WAS OWED MONEY BY HIS EMPLOYER AND WHO HAD GOOD GROUNDS TO BELIEVE THAT HIS EMPLOYER WAS ABOUT TO ABSCOND OR TRANSFER HIS ASSETS ELSEWHERE, COULD APPLY ΤΟ THE COURT FOR A WARRANT OF ARREST UNDER SECTION 67 OF THE EMPLOYMENT ORDINANCE.

TO

IF THE EMPLOYER WAS AN INSOLVENT LIMITED COMPANY SUBJECT WINDING UP, HE WAS REQUIRED UNDER SECTION 271 OF THE COMPANIES ORDINANCE TO DELIVER UP ALL THE PROPERTIES OF THE COMPANY IN HIS CUSTODY OR UNDER HIS CONTROL FOR DISPOSAL BY THE COURT.

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IF A COMPANY WAS BEING WOUND UP AND THE LIQUIDATOR OBTAINED FROM THE COURT A DECLARATION THAT THERE HAD BEEN A BREACH OF TRUST OF MISFEASANCE INVOLVING ASSETS OF THE COMPANY, THE PERSON RESPONSIBLE WAS LIABLE TO REPAY OR RESTORE THE VALUE. OF THE ASSETS OR PROPERTY UNDER SECTION 276 OF THE COMPANIES ORDINANCE.

THESE ASSETS COULD BE SOLD BY THE OFFICIAL RECEIVER FOR THE PURPOSE OF PAYING PREFERENTIAL AND ORDINARY CLAIMS TO EMPLOYEES.

SECTION 224 OF THE COMPANIES ORDINANCE ALSO PROVIDED FOR THE COURT TO ORDER THE ARREST OF ANY RESPONSIBLE PERSON OF A COMPANY WHO HAD ABSCONDED OR WAS ABOUT TO LEAVE HONG KONG TO EVADE PAYMENT OF PERSONAL DEBTS DUE BY HIM TO THE COMPANY, OR OF AVOIDING EXAMINATION RESPECTING OF THE COMPANY.

THE

THESE POWERS DID NOT APPLY IN RESPECT OF THE DEBTS OWING OR OTHER LIABILITIES OF THE COMPANY CREDITORS.

MR BRIDGE SAID THAT IN PRACTICE EMPLOYEES 30 AFFECTED THE LABOUR DEPARTMENT AND LODGED THEIR CLAIMS UNDER THE PROVISIONS OF THE EMPLOYMENT ORDINANCE.

"THE LABOUR RELATIONS SERVICE OF THE CONCILIATION IN THE FIRST INSTANCE," HE SAID.

DEPARTMENT

AFFAIRS

GENERAL ΤΟ ITS

WENT ΤΟ RELEVANT

ARRANGES

/"IF CONCILIATION

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