FASHION ART GARMENT FACTORY LTD v. YEUNG MAU CHING AND OTHERS

FASHION ART GARMENT FACTORY LTD v. YEUNG MAU CHING AND OTHERS

The court held that dismissal, whether lawful or unlawful, does not extinguish the statutory right to claim severance under the Employment Ordinance; the severance scheme is a statutory code activated by an employee's claim under s.31N, and the proviso to s.31E(1) does not extend the four consecutive weeks by excluding statutory holidays in the manner contended by the company; therefore the Presiding Officer's determination that the employees were laid off and entitled to claim severance was correct.

Citation
FASHION ART GARMENT FACTORY LTD v. YEUNG MAU CHING AND OTHERS
Parties
Applicant/defendant: Fashion Art Garment Factory Limited; Respondents/claimants: Yeung Mau Ching & 13 others
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 December 1989
Case Number
HCLA39/1989
Procedural Posture
Labour Tribunal Appeal / Judgment on Appeal to High Court
Outcome
Appeal dismissed
Legal Topics
Severance Payment, Lay Off, Dismissal, Time Limits for Claims, Interpretation of Employment Ordinance
Source Language
EN
Employment Law Labour Law Statutory Interpretation Severance Payment Lay Off Dismissal Time Limits for Claims Interpretation of Employment Ordinance

Case Brief

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Parties

Fashion Art Garment Factory Limited

Applicant/defendant

Yeung Mau Ching & 13 others

Respondents/claimants

Procedural Posture

Labour Tribunal Appeal / Judgment on Appeal to High Court

Legal Issues

  1. 1 Whether former employees may exercise right to claim severance payment after dismissal
  2. 2 Whether dismissal (lawful or unlawful) extinguishes statutory right under s.31E and s.31N
  3. 3 Construction and application of proviso to s.31E(1) regarding holidays and computation of 4 consecutive weeks

Ratio Decidendi

The court held that dismissal, whether lawful or unlawful, does not extinguish the statutory right to claim severance under the Employment Ordinance; the severance scheme is a statutory code activated by an employee's claim under s.31N, and the proviso to s.31E(1) does not extend the four consecutive weeks by excluding statutory holidays in the manner contended by the company; therefore the Presiding Officer's determination that the employees were laid off and entitled to claim severance was correct.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs to the respondents represented
  • For respondents unrepresented, a reasonable sum awarded by way of expenses, assessed at HKD 100 per day (subject to submissions)