What to do when the company fallen into arrears of wages Essay
What to do when the company fallen into arrears of wages, 497 words essay example
For the company suggestion, if the Hong Kong Cruise Plaza company can not pay the salary for employees on time, according to the 'Department of Justice', the company need to terminate the contract with the employees.Also, as the company was delayed to pay the salary over one month. The company need to take responsibility for the terminal payments and compensation.
Moreover, the company can apply for bankruptcy that a creditor can't repay the debt for employees. The debtor will sold off and converted to cash for repaying the relevant debts or part of the debts. If debtor bankruptcy petition is submit or the Court makes a bankruptcy order, no proceedings can be taken against or continued with against the debtor. But this solution will affect debtor after that the debtor can't practice in some professions industry. For example, as a lawyer, as a director of a limited company etc.
The company also can apply for winding-up, because company is unable to pay a debt of $10,000or above that company need to pay around $240million for employees. If the company is winding- up, it will start from the filing of the petition. Any property of company will have change, including any transfer of shares or alteration in the status of the shareholders. The company need to pay salary for employees which is deduction of all fees and expenses and remaining in the estate. Then, the company have other solution such as find the investor injection or transfer of stock to company that it have capital to pay the salary for employees.
For the employees suggestion, the employees can apply the claim by the Labour Tribunal Department that this cause will have hearing and the list a case for hearing not later than 30 days from the date of filing. If the defendant does not attend hearing , the claimant provide evidence to support so the claimant will be successful of this cause.
When the company fallen into arrears of wages, the employees who suffers damage in this case. Employees can take an action from the Labour Department. The employees should present a bankruptcy or liquidation petition against your insolvent. The Labour Department maybe transfer the case to the Legal Aid Department. If the legal aid is approve your case, you may need to submit the documentary proof about the company arrears with the empolyees wage. The employees can ensure the employer run away and ask the company for the debt. Employees can retrieve wages up to a maximum of HK$ 8000 each for severance payments or lieu of notice payments in the case.
Moreover, suppose that the employer has become insolvent and fallen into arrears of the empolyees salary. The employees should apply for Ex Gratia payment from the the Protection of Wages on Insolvency Fund Board. The Ex Gratia payment is means the government can provide the ex-gratia payment for the employees emergency relief. The ex-gratia payments includes, the wages, severance payment and lieu of notice payment