NECKEL NILS v. DUAL VOLTAGE CO. LTD.

NECKEL NILS v. DUAL VOLTAGE CO. LTD.

A non-accountable housing allowance paid under the contract is consideration for services and falls within the statutory definition of 'wages' under the Employment Ordinance; the statutory exclusion for 'the value of any accommodation provided by the employer' applies to benefits in kind, not to actual monetary housing allowances, so the housing allowance must be included in wages in lieu of notice.

Citation
NECKEL NILS v. DUAL VOLTAGE CO. LTD.
Parties
Claimant/respondent: NECKEL NILS; Defendant/appellant: DUAL VOLTAGE COMPANY LTD.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 December 1996
Case Number
HCLA110/1996
Procedural Posture
Labour Tribunal Appeal / Judgment on Appeal From Labour Tribunal Claim No. LT436 of 1996
Outcome
Appeal dismissed
Legal Topics
Wages Definition, Housing Allowance, Remuneration, Benefit in Kind, Wages in Lieu of Notice
Source Language
EN
Employment Law Labour Law Contract Law Wages Definition Housing Allowance Remuneration Benefit in Kind Wages in Lieu of Notice

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Parties

NECKEL NILS

Claimant/respondent

DUAL VOLTAGE COMPANY LTD.

Defendant/appellant

Procedural Posture

Labour Tribunal Appeal / Judgment on Appeal From Labour Tribunal Claim No. LT436 of 1996

Legal Issues

  1. 1 Whether a non-accountable housing allowance payable under the contract is 'wages' under the Employment Ordinance
  2. 2 Whether 'the value of any accommodation provided by the employer' excludes monetary housing allowances or only benefits in kind
  3. 3 Whether accountable or reimbursement-based allowances fall within the exclusion

Ratio Decidendi

A non-accountable housing allowance paid under the contract is consideration for services and falls within the statutory definition of 'wages' under the Employment Ordinance; the statutory exclusion for 'the value of any accommodation provided by the employer' applies to benefits in kind, not to actual monetary housing allowances, so the housing allowance must be included in wages in lieu of notice.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Employer to pay the respondent the award of $63,323.30 (balance of wages in lieu of notice)