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Martin Wong

Travel agencies say they face a 'huge change' after the Court of Appeal ruled that tips should be included in the salaries of tour guides for the purpose of claiming overtime.
Labour unions hailed the result and vowed to push for all workers under similar salary packages to be able to include service fees as salary.
The travel industry, meanwhile, was preparing for discussions on how to deal with the effects of the decision, which one industry leader said posed a challenge that might be too big for agencies to meet.
The case began when 14 tour guides with Wing On Travel - whose tips made up 90 per cent of their income - went to the Labour Tribunal in 2004, calling for compensation for extra days they had worked to include the service fee.
The tribunal rejected the group's claim in 2005, but one claimant, Lan Pik-shan, appealed to the Court of First Instance, which ruled in June last year that service fees were part of Ms Lan's salary and should be included in her overtime pay.
The travel agency lost its appeal in the Court of Appeal yesterday.
'It is abundantly clear that the defendant not only recognised the tips as part of the wage, but ran its business on the basis that they would be paid,' the Court of Appeal wrote in its written judgment. 'Putting an argument to the contrary does no credit to those prepared to advance it and those who wish to have it advanced on their behalf,' the judgment said, adding that tips received from tour participants would fall squarely within the statutory definition of 'wages'.
The court also said it was clear the legislature had intended that tips should be taken into account in calculating wages.
Wing On Travel said the ruling would have a profound impact on the travel industry. 'We will discuss with our lawyer to decide our next move,' a spokesman said.
Wing On said it would discuss the case with sector representatives and consult other travel agencies to see how the industry could deal with the possible changes posed by the ruling.
Travel Industry Council executive director Joseph Tung Yao-chung  said the industry faced a big challenge.
The 14 tour guides in the case were paid a salary of about HK$2,000 a month, while tips made up about 90 per cent of their total earnings.
'There will be big change in many travel agencies and we do not know if we can adapt to such a huge change,' he said, adding that many agencies had more or less the same salary packages as Wing On Travel.
'The cost of operation will definitely surge and it may be reflected in prices of travelling tours. We do not rule out asking for the government's assistance,' Mr Tung said.
The Hong Kong Tour Guides General Union said it might collectively file a claim to include the fees  from all travel agencies.
Legislator Lee Cheuk-yan,  who is also general secretary of the Confederation of Trade Unions, welcomed the ruling.
'The court clarified that service fees charged to tourists are also part of workers' salary. Not only travel agents but all workers in any industry who are now receiving such salary package are entitled to fight for their rights,' he said.
'Having said that, I want to stress that it is not anything new. Tips have been regarded as salary in labour laws for a long time. The court's ruling today merely reaffirms a right that labour has been entitled to for a long time.'



Tour guides win: tips are part of salary, court rules