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The Protection of Wages on Insolvency (Amendment) Ordinance 2012, which was passed by the Legislative Council on April 18, was gazetted today (April 27).
The ordinance aims to amend the Protection of Wages on Insolvency Ordinance to expand the scope of the Protection of Wages on Insolvency Fund (Fund) to cover pay for untaken annual leave and untaken statutory holidays under the Employment Ordinance (EO).
The Fund provides timely relief in the form of ex gratia payment to employees of insolvent employers, which currently covers four months' wages up to $36,000, one month's wages in lieu of notice up to $22,500 and severance payment up to $50,000 plus 50 per cent of the remainder of the entitlement.
Under the ordinance, the scope of the Fund will be further expanded to cover:
(1) pay for untaken annual leave payable to an employee upon termination of employment contract under the EO including (a) pay for any untaken annual leave earned in the employee's last full leave year; and (b) pro rata annual leave pay for the last leave year where the employee has at least three but less than 12 months' service entitled upon termination of employment contract; and
(2) pay for statutory holidays under the EO not yet taken by an employee within four months before his last day of service. Neither the amount of pay for untaken annual leave nor the amount of pay for untaken statutory holidays, nor the total amount of the two, may exceed $10,500.
The ordinance will come into operation on a day to be appointed by the Secretary for Labour and Welfare by notice published in the Gazette.
Ends/Friday, April 27, 2012
Issued at HKT 12:32
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