Most Read Contributor in Hong Kong, September 2016
Keywords: labour tribunal ordinance, LTO
On 24 December 2014 the Labour Tribunal Ordinance
("LTO") was amended to give the Labour Tribunal the
general power to order a party to give security for payment of an
award or order. To learn more about the previous position of the
Labour Tribunal's jurisdiction, please see our earlier legal
update, "On a Sticky Wicket Against Naughty
What is the Labour Tribunal's power after the change?
The amended sections 30 and 31 of the LTO have expanded the
Labour Tribunal's power to order a party to provide security
for the payment of an award or order, either of its own motion or
on the application of a party.
The possible circumstances for ordering security from a party
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; or
iv. where an application for a review of the Tribunal award or
order is devoid of merit or is made to delay the process.
What are the consequences of non-compliance?
Sanctions for failing to comply with a section 30 or section 31
security order include the dismissal of a party's claim,
staying of the proceedings, entering judgment on the claim against
a party or dismissing a review application of an award or order (as
the case may be).
What should employers do?
If a security order is made against an employer, timely
compliance of the order is crucial. An employer involved in
Tribunal litigation should also review on an ongoing basis whether
an application for a security order is necessary or will give any
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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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