Hong Kong congee chain’s closure leaves mainland workers without wages, home

The abrupt closure of a three-decade-old congee restaurant chain in Hong Kong has left around 20 imported workers from mainland China facing eviction from their dormitory and worried about being sent home without collecting unpaid wages. The mainland workers, who arrived in Hong Kong through the city’s supplementary labour scheme in May last year, were among more than 100 employees of Ocean Empire Food Shop who requested help from the Eating Establishment Employees General Union over unpaid wages of about HK$3 million. They sought assistance on Thursday after Ocean Empire announced the previous evening that it had closed all of its seven outlets. The Labour Department said it had received requests for help from more than 80 workers claiming outstanding wages of more than HK$8 million. A worker from Foshan in Guangdong province, who only gave her last name, Qian, said the company had “heartlessly” forced them to immediately move out of their dormitory in Yau Ma Tei. “The door just shut suddenly with no sign at all [on Wednesday]. Upon checking my bank records, I found my wage in April had not been deposited,” she said. Qian said she paid an agency fee of HK$30,000 for a work contract which guaranteed two years of employment and accommodation. “We are now not only facing unpaid wages but also the threat of forced eviction,” she said. She is in the middle of the two-year contract. “We are in a very miserable situation right now. My worst fear is being repatriated to Foshan,” she said. Her colleague, who identified herself as Li, also from Foshan, said it was difficult to find a job on the mainland, which was why she originally went to Hong Kong to work. “Encountering this situation after arriving in Hong Kong is truly unfortunate. Including the payment in lieu of notice, they owe us each HK$30,000 to HK$40,000,” she said. Chiu Kwun-chung, head of the union’s labour rights committee, said the mainland workers felt they had no option but to refuse to hand over their keys, while trying to remain in their dormitory for as long as possible to resolve the situation. “Having not paid their wages, it’s highly likely the employer has not paid the dormitory rent either, making homelessness an imminent issue for them,” Chiu said. “With the Labour Department and the courts requiring scheduling for case processing, they are highly likely to be repatriated to the mainland without a job in Hong Kong. “Returning to Hong Kong later to deal with legal matters won’t be a quick or easy resolution for them, and the travel and accommodation expenses will only add to their financial burden.” The union said it had received requests for help from about 100 employees across the chain’s seven branches, involving more than HK$3 million in unpaid wages. It added the company should sign a certificate of insolvency if it was unable to compensate its employees to speed up the recovery of the money owed to them. A manager surnamed Wai at Ocean Empire’s Kwai Fong branch said she had been working for the chain, which opened in 1992, for nearly 25 years. She said that including long-service payment, payment in lieu of notice, and outstanding holiday pay, she was owed about HK$460,000. “Over the past 20 years, the company had consistently paid wages on time on the seventh of every month, but starting in the latter half of last year, local employees’ salaries began to be delayed by about one to two weeks, and business also declined,” she said. “If the company decides to close down, it should compensate us properly, ensuring a fair and responsible resolution for everyone involved.” The firm sent a letter to all employees on Wednesday night, saying that due to a deteriorating business environment and the company’s worsening financial situation, management had decided to cease all company operations and would proceed with liquidation through a creditors’ voluntary winding-up. It also told employees to file claims for outstanding wages, payment in lieu of notice, accrued annual leave and severance pay, and to consult the Labour Department regarding their related legal rights. Lawmaker Aron Kwok Wai-keung slammed the company for failing to proactively fulfil its obligations to protect employee rights, effectively shifting the responsibility onto the government and the workers themselves, which he deemed reprehensible. “To announce closure at the last minute and tell employees to claim from the fund for unpaid wages and payment in lieu of notice is extremely irresponsible,” Kwok said. “The Protection of Wages on Insolvency Fund is not a company’s personal automated teller machine, especially for businesses with sufficient operational capacity or experience. “They should have been aware of their financial situation much earlier.”

Hong Kong congee chain’s closure leaves mainland workers without wages, home

Uncertain times for about 20 imported workers after Ocean Empire Food Shop abruptly closes all seven branches