Industry urges speedy passage of payment law to tackle workers' wage arrears

The Hong Kong Construction Industry Employees General Union stated yesterday (July 25) that they received multiple requests in July from site workers claiming that their direct employers had unjustly delayed their salaries for over three to four months, involving more than HK$ 30 million and affecting over 500 workers.

Lawrence Ng San-wa, President of the Hong Kong Construction Sub-contractors Association, highlighted today (July 26) that the construction industry has long grappled with challenges such as lowest bid wins and pay discrepancies, issues that have only intensified in recent years.

Ng pointed out that since the Construction Industry Security of Payment Bill has not yet been passed, it is currently impossible to resolve the aforementioned issues in the short term. He added that while the Bill might not quickly or entirely solve the problems, it could gradually improve the situation.

Legislative Council member Dennis Leung also urged workers who have experienced wage arrears to seek help early, rather than waiting until their daily lives are unsustainable. He noted that although there is a protection mechanism in place, it only covers two months of unpaid wages. If the wage arrears exceed two months, workers can only recover up to two months of their salaries.

The Construction Industry Security of Payment Bill suggests improving contract payment terms, such as prohibiting unfair clauses like "receive first, pay later," and requiring the payer to respond within 30 days and pay within 60 days of receiving a claim. In case of disputes, the claimant can initiate adjudication within 28 days, and both parties must resolve the dispute through an independent adjudicator. If the payer does not make the payment within the deadline, the claimant has the right to stop work or slow down the project.

"The Bill will reduce the chances of workers facing wage delays and protect frontline workers' rights," said Ng.