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A Tai Po restaurant that closes for renovation today was ordered by labour officials yesterday to return to staff the 100 voluntary contract termination letters it asked them to sign.

The letter request sparked panic among workers after the recent string of restaurant closures, including that of the Ocean Palace Restaurant in Tsim Sha Tsui.

About 230 Ocean Palace workers are  still fighting for full payment of the outstanding $5.7 million in severance pay owed by the employer, after discovering the insolvency fund could only pay a maximum of $4.3 million.

The Catering and Hotels Industries Employees General Union under the Confederation of Trade Unions met employers last night to work out a deal.

They  agreed to pay $300,000 for annual leave, but would not move on the  severance pay.

Legislator and unionist Lee Cheuk-yan,  representing the workers, last night said he hoped an agreement could be reached by Friday but 'the prospect looks bleak at this point'.

In the Tai Po case, Kam Tao Restaurant workers yesterday approached a union  for help after about 100 workers were asked to sign the letter on April 12.

The operator asked the workers to sign the letters after it decided to rename and renovate the restaurant. But Labour Department officer Chak Shui-hang  yesterday said the practice was unnecessary and inappropriate.

He said that except for eight workers who would be dismissed for various reasons, the operator intended to continue employing the remaining workers.

'The restaurant should return the letters to the workers and draw up another letter that states that the restaurant is to be closed for seven days for renovation, but employees are asked to only take seven days of paid leave during the period,' Mr Chak said.

According to the director and general manager of Kam Tao Catering Group, Mak Wai-ki, the restaurant had decided on a facelift to switch to a younger-looking style, while changing its name from Kam Tao to Kam Ho to fit with five other restaurants in the group.

The group is spending $900,000 to this end, he said.

Li Kwok-wah,  secretary of the Eating Establishment Employees' General Union, which helped the workers yesterday, said other than the eight workers who had been dismissed, 24 workers had decided to quit.

Mr Li said that while cheques for final salaries and company leave were issued to the 32 departing workers, payment for labour holidays and severance pay had yet to be settled.

Workers were still working out how much they were owed.



Tai Po restaurant told to return termination letters to workers