A few weeks ago we drew attention to the proposed changes to the Protection of Wages on Insolvency Fund (“PWIF”) which would mean that employees could be paid up to a maximum of HK$10,500 by the PWIF in respect of unpaid holiday pay. This was seen as a very positive move designed to give further protection to employees of insolvent companies in Hong Kong.
Unfortunately, for the best of motives, it appears that this update to the PWIF is unlikely to come into force as soon as previously expected. At the Legco session on 7 October 2011, members expressed support for the proposal, but raised concerns that the limitations imposed rendered the proposals inadequate in terms of the amounts that were proposed to be paid. One suggestion put forward was to allow all claims for holiday pay to be paid rather than the amount being limited to HK$10,500.
Only time will tell whether the proposed changes are introduced in the near future or if they are delayed to a later date pending consideration of an extension to the scope by increasing the amount payable.