RE MADAM YAU CHUK YING

RE MADAM YAU CHUK YING

Failure to pay wages can amount to repudiation but the contract is terminated only when repudiation is accepted by the employees in the factual context. On the facts: shop employees were instructed to and did continue work and their employment continued until the Official Receiver took over on 16 July 1981; restaurant employees ceased work and by their conduct accepted the employer's repudiation so their employment ended on 30 June 1981. The Official Receiver did not dismiss employees; costs ordered against estate.

Citation
RE MADAM YAU CHUK YING
Parties
Official Receiver/applicant: Official Receiver and Trustee; Debtor/defendant: Madam Yau Chuk Ying; Employee/plaintiff (shop Test Case): Madam Yeung Mui Chu; Employee/plaintiff (restaurant Test Case): Mr. Yip Wai Lun
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 October 1982
Case Number
HCB73/1981
Procedural Posture
Bankruptcy / Directions/decision on Proofs of Debt and Termination Dates
Outcome
Application for directions granted in part with specified findings on termination dates and costs awarded against the estate
Legal Topics
Repudiation of Contract, Termination of Employment, Proofs of Debt, Constructive Dismissal, Duties of Official Receiver
Source Language
EN
Bankruptcy Employment Law Contract Law Repudiation of Contract Termination of Employment Proofs of Debt Constructive Dismissal Duties of Official Receiver

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Parties

Official Receiver and Trustee

Official Receiver/applicant

Madam Yau Chuk Ying

Debtor/defendant

Madam Yeung Mui Chu

Employee/plaintiff (shop Test Case)

Mr. Yip Wai Lun

Employee/plaintiff (restaurant Test Case)

Procedural Posture

Bankruptcy / Directions/decision on Proofs of Debt and Termination Dates

Legal Issues

  1. 1 Whether employer's failure to pay wages amounted to repudiation of employment contract
  2. 2 Whether repudiation, if any, was accepted by employees and when contracts terminated
  3. 3 Whether employees who remained on premises after cessation of business continued employment

Ratio Decidendi

Failure to pay wages can amount to repudiation but the contract is terminated only when repudiation is accepted by the employees in the factual context. On the facts: shop employees were instructed to and did continue work and their employment continued until the Official Receiver took over on 16 July 1981; restaurant employees ceased work and by their conduct accepted the employer's repudiation so their employment ended on 30 June 1981. The Official Receiver did not dismiss employees; costs ordered against estate.

Court Disposition

Application for directions granted in part with specified findings on termination dates and costs awarded against the estate

Orders

  • Madam Yeung Mui Chu's employment of the shop continued until 16 July 1981 and terminated on that date when Official Receiver took over
  • Mr. Yip Wai Lun's employment at the restaurant terminated on 30 June 1981