The referral of workers to labour authorities to claim unpaid wages is an “irresponsible” move, a lawmaker and a rights activist have said, slamming the owners of a three-decade-old Hong Kong congee restaurant chain, which left more than 100 employees in limbo after its abrupt closure.
They also said ahead of a staff meeting scheduled for Friday afternoon that the government’s safety net might be unable to cover the unpaid wages in full.
Their warning was made as the government’s Protection of Wages on Insolvency Fund recorded deficits, with the one for next year estimated to go beyond HK$1.1 billion (US$141.5 million).
The Eating Establishment Employees General Union said that Ocean Empire Food Shop failed to pay for employees’ Mandatory Provident Fund (MPF), even when the amounts were deducted from their pay between January and March, on top of up to HK$10 million of unpaid wages.
“Deliveroo had better arrangements when they announced their April 7 closure in early March, even though [the riders] were not employees,” legislator Lam Chun-sing, chairman of the Federation of Hong Kong and Kowloon Labour Unions, told a radio programme.
“[Deliveroo] kept paying them after the announcement and came to an agreement. That is what should be done. But now the shop seems to want to go bankrupt, thinking there is not much staff can do but head to the Labour Department for help,” he added.