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January 29, 2015

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High-end club staff finally get their money

MORE than 140 former employees of a high-end club in downtown Jing’an District that closed four months ago have finally received wages of 1.17 million yuan (US$180,000), the district court said yesterday.

This was paid temporarily by a special fund established by the court and human resources authorities to protect rights of employees.

The Lichi Oriental Club, owned by the Shanghai Jing’an Lichi Business Hotel Ltd Co, suddenly closed last October.

Its owner, whose name was not given, disappeared without paying six weeks’ salaries to employees, said the court.

“I’ve been working in Lichi for seven years and never thought it would close so suddenly,” one employee, surnamed Xiong, told reporters.

Some former staff went back to their hometowns while some created a group on the WeChat social messaging app to try to get their cash. They submitted an application to the local labor dispute arbitration committee. The case was accepted by the district court, which launched an investigation of the club owner’s properties and assets.

Investigators found there was nothing to pay the employees, and the court cooperated with the Jing’an human resources and social security bureau to pay the money.

It will look to track down the club owner and get him to repay the sum.

More than 60 employees received cash at the court yesterday, while those who had left Shanghai and returned to their hometowns would also receive the delayed payments in their bank accounts, said officials.

Security deposit

As Shanghai has been cracking down on employers not paying workers, many districts have set up security funds to help employees receive their wages as soon as possible.

Under this system, employers are required to pay a back pay security deposit to into the fund each year.

Last October, 141 employees in another Lichi Business Hotel on Hongqiao Road in Changning District gathered to protest at the hotel as they had not be paid for two months.

Though the hotel agreed to pay, it asked for more time to prepare the funds.

Changning human resources and social security bureau used its back pay security fund and paid the staff.




 

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