CHENG MO CHIU AND OTHERS v. MING KAI DYEING FACTORY (H K) LTD

CHENG MO CHIU AND OTHERS v. MING KAI DYEING FACTORY (H K) LTD

The presiding officer correctly calculated the normal working days and found the employees worked less than the statutory two‑thirds threshold; coupled with the employer's unilateral reduction of the daily rate, this amounted to constructive dismissal and entitlement to severance, so the appeal is dismissed with costs.

Citation
CHENG MO CHIU AND OTHERS v. MING KAI DYEING FACTORY (H K) LTD
Parties
1st Claimant/1st Respondent: CHENG MO CHIU; 2nd Claimant/2nd Respondent: WONG LAP YAN; 3rd Claimant/3rd Respondent: WONG LAP TONG; 4th Claimant/4th Respondent: LI YUK KEUNG; 5th Claimant/5th Respondent: NG KUK LEUNG; 6th Claimant/6th Respondent: CHAN YUK KEUNG; 1st Defendant/applicant: MING KAI DYEING FACTORY (HONG KONG) LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
1 September 2006
Case Number
HCLA91/2005
Procedural Posture
Labour Tribunal Appeal / Judgment on Appeal
Outcome
Appeal dismissed
Legal Topics
Redundancy, Constructive Dismissal, Severance Pay, Statutory Holidays, Calculation of Normal Working Days, Employment Ordinance
Source Language
EN
Employment Law Labour Law Contract Law Redundancy Constructive Dismissal Severance Pay Statutory Holidays Calculation of Normal Working Days +1 more

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Parties

CHENG MO CHIU

1st Claimant/1st Respondent

WONG LAP YAN

2nd Claimant/2nd Respondent

WONG LAP TONG

3rd Claimant/3rd Respondent

LI YUK KEUNG

4th Claimant/4th Respondent

NG KUK LEUNG

5th Claimant/5th Respondent

CHAN YUK KEUNG

6th Claimant/6th Respondent

MING KAI DYEING FACTORY (HONG KONG) LIMITED

1st Defendant/applicant

Procedural Posture

Labour Tribunal Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether the presiding officer erred in calculating the normal working days
  2. 2 Whether the employees were constructively dismissed by the employer's unilateral reduction of pay
  3. 3 Whether employees were dismissed by way of redundancy and are entitled to severance payments

Ratio Decidendi

The presiding officer correctly calculated the normal working days and found the employees worked less than the statutory two‑thirds threshold; coupled with the employer's unilateral reduction of the daily rate, this amounted to constructive dismissal and entitlement to severance, so the appeal is dismissed with costs.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Costs awarded to the respondents