Employees look for relief from unpaid wages, severance payment
Around 670 employees of Physical Fitness are requesting assistance from the Labour Department (LD) after the Hong Kong gym chain abruptly closed its doors earlier this month, according to Labour Secretary Chris Sun.
"We have received around 670 employees of Physical Fitness seeking help from the Labour Department," Sun told reporters on Sunday. "Basically, they are looking for relief to their unpaid wages and severance payment."
Physical Fitness abruptly shut down all its 23 branches in Hong Kong on September 6 for what it said was a temporary closure due to high rents in the financial hub.
Since then, more than 2,600 complaints Physical Fitness' gym members have been filed with Hong Kong's Customs and Excise Department and the police, leading to the arrest of two directors of the gym chain.
Sun told reporters that LD members and labour unions are "trying their very best" to persuade the employer of Physical Fitness to sign a statement declaring that they are unable to pay their employees.
This will speed up the process for affected employees who are eligible for funding support under Hong Kong's Protection of Wages on Insolvency Fund, according to Sun.
"In the event that this statement is not available, there is an established procedure which has to go through the Labour Tribunal and also to file a petition to the court, so it takes a bit more time," the labour secretary said.
"Yet you can rest assured that under the Fund, all the affected employees can get funding support for their unpaid wages and severance payment."
Pension problems for Physical
The temporary closure of Physical Fitness also followed the Mandatory Provident Fund Schemes Authority's statement that the gym chain had not paid contributions to the MPF pension scheme in June and July, the Hong Kong Free Press reported.
Contributions for 740 employees have not been paid, according to the authority, amounting to about HK$3 million outstanding.
A spokesperson for the authority said Physical should settle its outstanding payments or face a civil claim.
Rebranding to 'Healthy'
Meanwhile, Physical's branch in Wan Chai has reopened under a new wellness brand called "Healthy," the HKFP reported.
The Hong Kong Free Press said a banner under Healthy was erected outside the branch, announcing that it would provide services to those who had packages from Physical but would not be responsible for the "financial or contractual disputes" over the gym chain's closure.
Sun advised former Physical employees who are joining Healthy to pay attention to the terms of the new employment.
"[They should] make sure they know what terms are being offered, as well as the protection and terms of the employment, and make sure they know what they are signing up for," Sun said.
He added that they also need to ask their new employer how it would handle the unpaid wages and severance payment left behind by Physical.
"I think this is very important and I urge them to make sure they consider all these factors before signing a new employment contract," the labour secretary said.
