Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Wages and severance pay
  • 15 Jul 1980

    RE HONG KONG MALAYAN DRILLERS & ENGINEERINGS LTD

    Citation
    RE HONG KONG MALAYAN DRILLERS & ENGINEERINGS LTD
    Court
    Court of First Instance
    Case number
    HCCW50/1978

    Wages advanced by principal contractors are preferential under s.265(2) of the Companies Ordinance; sums advanced for severance pay are not 'wages' and do not attract preference unless the contractor acted as surety and complied with the formal/statutory requirements (section 15 LARO in conjunction with s.265). Assignment or subrogation to workers' claims does not itself confer statutory preferential status on the assignee without compliance with the statutory mechanism; claimants who acted as sureties with supporting documents are entitled to preference, others are admitted as unsecured cred…