In a surprise move, the government supported a Legco motion yesterday to uphold workers' rights by reviewing the insolvency system and related laws.
The move comes in response to a series of sudden restaurant closures that have forced workers to seek compensation from the Insolvency Fund. The legislature yesterday passed an amended motion, with cross-party support, urging the government to review the fund's regulations and to close loopholes in existing laws.
It also demanded that the government streamline the fund's application procedures and step up prosecution against employers who deliberately default on paying workers their wages.
Secretary for Financial Services and the Treasury Frederick Ma Si-hang told the Legislative Council that the government supported the lawmakers' motion, and would try to strike a balance between protecting workers and maintaining a good business environment.
But any new policies would be available for public consultation before implementation, he said.
Problems with the fund were noticed in 1985 when it was introduced, said Unionist legislator Chan Yuen-han.
