The sudden announcement of the closure of Hong Kong's fitness center chain, PHYSICAL Fitness & Beauty, on Sept. 6 has not only resulted in heavy losses for consumers but also a large number of employees being owed wages by the company.
According to the latest paper submitted by the Labour Department (LD) to the Legislative Council (LegCo) Panel on Manpower, as of noon on Sept. 19, the LD had received requests for assistance from about 720 employees of PHYSICAL, most of whom were involved in claims for non-payment of wages and other employment rights.
The LD pointed out that, as part of its efforts to protect the employment rights and benefits of the employees of PHYSICAL Fitness & Beauty, it has issued a stern warning to and requested the directors of PHYSICAL to immediately settle the arrears of wages and other employment-related payments to all the employees; and at the same time, it has also urged the directors or persons-in-charge of the company concerned that if the employer is unable to settle the arrears of wages and other employment-related payments to the employees, the employer should sign a declaration of incapacity to pay to the employees to acknowledge the amount owed to the employees, so as to prevent the employees from going to the Labour Tribunal to seek adjudication, to apply for ex gratia payment from the Protection of Wages on Insolvency Fund (the Fund).
LD further advised that the Fund provided free legal services and would assist employees in filing court petitions for winding up of companies. For employers suspected to have breached the Employment Ordinance, the LD will liaise with the employees to assist in criminal investigation and will initiate prosecution if there is sufficient evidence.
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