Pizza Hut apologizes for underpaying some staff for 10 years

November 03, 2017 13:31
In a letter to former staffers, Pizza Hut said it had underpaid holiday wages to some employees since 2007. Photo: Internet

Restaurant chain Pizza Hut was found to have underpaid some staff by 1 percent in salaries over the past 10 years.

In a letter to former staffers, Pizza Hut said it had underpaid holiday wages since 2007, Apple Daily reports.

Up to 3,000 staff are believed to have been affected, with most of them being underpaid by about 1 percent of their annual salaries. However, Pizza Hut did not give the actual amount involved.

Pizza Hut Hong Kong chief executive Yip Cheuk-tak apologized in the letter, saying he hopes the employees would forgive the company for the mistake. The underpayment will be settled by the end of the year, Yip said.

The Labour Department expressed concern over the incident, saying the Employment Ordinance must be strictly adhered to.

Most of the employees who have left Pizza Hut received the letter this week.

A fomer employee, surnamed Cheung, said the letter mentions that the human resources department found that it made a mistake in calculating the wages for the operations department and would repay them as soon as possible.

For example, if a waiter receives HK$15,000 a month, he or she should get about HK$1,800 in holiday pay per year.

Pizza Hut said the mistake has been corrected since August and all those who are still working in Pizza Hut will receive back payment in December with their paychecks.

As for those who have already left, the company said it is trying to contact them and would mail them their checks before the end of the year.

Leung Tin-chu, a committee member of the Eating Establishment Employees General Union, said Pizza Hut had notified its employees about their holiday pay of its own accord, showing that the company is being responsible for its mistakes.

The letter did not say why the mistake was made in the first place.

In May, Apple Daily reported that Chung Yuen Electrical Co. was found to have withheld staff commissions in the calculation of average salary in the holiday pay checks for 10 years.

With the help of the Labour Department, the 200 employees concerned were able to receive their owed wages for six out of the 10 years.

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