Safeguard workers when businesses shut in Hong Kong
It is sad but true that the weak economy and a changing business environment are pushing more restaurants and retailers to the brink. The stakes are even higher when businesses that shut their doors leave workers in limbo. The financial and social costs to the wider society can be overwhelming.
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Take, as an example, the abrupt closure of the Ocean Empire Food Shop. It came as a surprise, not least because, at its peak, it operated more than 30 congee restaurants around Hong Kong.
What makes the chain's closure even more shocking is the poor handling of the affected workers, who were told to make claims over wages, payment in lieu of notice, accrued annual leave and severance pay directly to the Labour Department.
The department said it had received requests for help from more than 100 staff members seeking outstanding wages and related payments worth HK$15 million.
The restaurant chain has also reportedly failed to pay workers their wages and make Mandatory Provident Fund contributions on time.
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The restaurant owners said they had spent more than HK$30 million of their personal funds to stay afloat, amid accusations that they had been irresponsible by referring workers to the labour authorities to claim unpaid wages.
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