Advertisement
Advertisement
Hong Kong economy
Get more with myNEWS
A personalised news feed of stories that matter to you
Learn more
Mee Lemongrass, one of the brands operated by Asia Catering. Photo: Handout

More than 100 staff owed HK$5 million in unpaid wages, contributions after Hong Kong restaurant operator abruptly shuts down

  • Restaurant workers’ union says it is helping affected employees of Asia Catering (Holding) Limited who are confused about Mandatory Provident Fund payments
  • Asia Catering’s owner failed to make employer’s contribution to MPF trustees ‘from months to a year’, union adds

More than 100 employees of a restaurant operator in Hong Kong are owed over HK$5 million (US$637,260) in unpaid salaries and other contributions after it abruptly closed down and its owner disappeared over the weekend, a union leader has said.

Chiu Kwun-chung, of the labour affairs committee of the Eating Establishment Employees General Union, on Monday said more than 70 of the affected staff of Asia Catering (Holding) Limited had reached out for help and many were confused about matters concerning their Mandatory Provident Fund (MPF).

Asia Catering operated nine restaurants under its three brands of Ma La Niang Zi, Mee Lemongrass and Kokonoi Sushi.

Eating Establishment Employees General Union with affected Asia Catering staff during the meeting on Monday. Photo: Handout

Most of the employees showed up at a meeting with the union on Monday, with Labour Department staff helping them fill out claim forms on site, Chiu said.

“Employees from the same restaurant were having different MPF trustees. A janitor who worked for nine years had five MPF trustees during her employment. It is just chaotic to figure out which trustees they were paying to,” Chiu said, adding the situation was complicated and “unusual” as an employee usually had one MPF trustee to which contributions were made.

“For most of the affected employees, the owner failed to pay the employer’s [MPF] contribution and took money from the employees but did not pay for their portion, ranging from months to a year.”

The Mandatory Provident Fund Schemes Authority said it sued Asia Catering on behalf of affected employees to recover outstanding contributions and surcharges after it was informed last year about the company’s failure to settle payments to the trustees.

The authority recently received four complaints from the restaurant group’s employees about a delay in employer contributions. One complaint was resolved and the other three proceeded to court.

Hong Kong restaurants close as support comes ‘too little, too late’

A spokesman for the authority said it had put in place a mechanism for trustees to report non-compliant employers.

The authority reminded employers that those who made mandatory contributions of 5 per cent of the employee’s relevant income but failed to make such payments to MPF trustees could be subject to a maximum penalty of a HK$450,000 fine and four years’ imprisonment.

Leung Fai, a chef of Ma La Niang Zi, said his supervisor informed him last Thursday that he did not have to come to work on Friday.

“He told me I didn’t need to come to work the next day. The boss has gone missing,” Leung said.

The 63-year old chef revealed that he was owed a month’s salary of HK$35,000 and that the employer had not paid mandatory contributions to the MPF trustees.

“I found this situation ridiculous. I am just an ordinary kitchen guy who cooks for a living and provides for my family. How could [the employer] take my hard-earned money from me? But now the more pressing thing is, I have to find a job,” he said.

Hong Kong restaurant operators downsize operations to beat Covid-19 slump

The Labour Department said it was concerned about the case and had received requests for help from some affected employees. It strongly advised the employer to pay the termination compensation to the staff concerned in accordance with the Employment Ordinance.

“If suspected breaches of laws are detected, the department will carry out a criminal investigation and contemplate prosecution,” its spokesman said.

“An employer who wilfully and without reasonable excuse fails to pay wages to employees when it becomes due, is liable upon conviction to a fine of HK$350,000 and imprisonment for three years.”

Hong Kong snack chain Aji Ichiban shuts all 20 retail shops amid Covid-19 losses

Ray Chui Man-wai, chairman of industry group Institute of Dining Professionals, said he was shocked to learn of the group’s closure as the owner of Asia Catering was very experienced, having been in the industry for more than two decades.

“The way the owner handled the closure was not ideal at all. Our industry has experienced five waves of the coronavirus pandemic with some restrictions on operations,” he said.

“Although the government has provided support, the recovery is limited by the economic environment, and consumption power is still pretty low.”

Chui said he believed the Asia Catering incident was an isolated one and would not have an immediate impact on the industry.

3