The Labour Department today announced that the maximum level of ex gratia payments made from the Protection of Wages on Insolvency Fund to employees who are owed severance by insolvent employers will be increased from tomorrow.
Following a Legislative Council resolution under the Protection of Wages on Insolvency Ordinance, the maximum level of payment will be increased from $100,000 to $200,000, plus 50% of any excess entitlement.
The adjusted maximum amount will take effect tomorrow upon the resolution’s publication in the Government Gazette, and will apply to severance where the liability for payment arises on or after that date.
The department said the legislative amendment will strengthen protection of employees’ entitlement to severance payment upon business closures.
