Most Read Contributor in Hong Kong, September 2016
Draft legislation has been proposed to introduce changes to the
Labour Tribunal Ordinance.
The most significant proposed change is that the Labour Tribunal
will be given the general power to order a party to give security
for payment of an award.
Under section 30 of the Labour Tribunal Ordinance, the power of
the Labour Tribunal to order a party to provide security for
payment of an award is very restricted. Security may only be
ordered against a defendant if there is an adjournment of a hearing
and the adjournment may result in prejudice to the claimant because
of the disposal of assets by the defendant.
Under the draft legislation, the Labour Tribunal will be given
the general power to order a party to give security for payment of
Possible circumstances for ordering security from a party may
include the following:
i. Where there is a real risk that payment of the award will be
obstructed or delayed because of dissipation of assets;
ii. Where a party unreasonably delays or abuses the Tribunal
iii. Where a party fails to comply with any award, order or
direction without reasonable excuse;
iv. Where an application for a review of the Tribunal award is
devoid of merit.
Beware: If a party fails to give security, this
may result in its case being dismissed or suspended, or judgment
may be entered against that party.
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This article provides information and comments on legal
issues and developments of interest. The foregoing is not a
comprehensive treatment of the subject matter covered and is not
intended to provide legal advice. Readers should seek specific
legal advice before taking any action with respect to the matters
discussed herein. Please also read the JSM legal publications
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