Protection of Wages on Insolvency Fund (Update 2)

The long awaited changes to Hong Kong’s Protection of  Wages on Insolvency Fund (PWIF) have moved one step closer to becoming law. As we explained on 18 October 2011, (read here), the changes will now allow employees to claim from the PWIF up to HK$10,500 in respect of unpaid holiday pay. Previously employees could only claim for arrears of wages, pay-in-lieu of notice and severance pay from the PWIF.

The Protection of Wages on Insolvency (Amendment) Ordinance 2012 was gazetted on 27 April 2012 and will come into force at a future date to be decided by the Secretary for Labour & Welfare.

At the moment there is no indication of how transitional arrangements will work, but presumably these will be addressed when the changes pass into law.

 

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Protection of Wages on Insolvency Fund