Protection of Wages on Insolvency (Amendment) Ordinance 2012

The Protection of Wages on Insolvency (Amendment) Ordinance 2012 has come into operation on 29 June 2012.

Under the ordinance, the scope of the Protection of Wages on Insolvency Fund is expanded to cover: (1) pay for untaken annual leave payable to an employee upon termination of employment contract under the Employment Ordinance (EO) including (a) pay for any untaken annual leave earned in the employee's last full leave year; and (b) pro rata annual leave pay for the last leave year where the employee has at least three but less than 12 months*service entitled upon termination of employment contract; and (2) pay for statutory holidays under the EO not yet taken by an employee within four months before his last day of service. Neither the amount of pay for untaken annual leave nor the amount of pay for untaken statutory holidays, nor the total amount of the two, may exceed $10,500.

More information on the Protection of Wages on Insolvency Fund

A Concise Guide to the Protection of Wages on Insolvency (Amendment) Ordinance 2012 (PDF)

Full text of the Protection of Wages on Insolvency (Amendment) Ordinance 2012

Protection of Wages on Insolvency (Amendment) Ordinance 2012- Frequently Asked Questions with Answers (PDF)