Highlights
Task:
Question 1 (55 marks)
Headquartered in Hong Kong, Tusman Limited (the ‘Company’) is an online food delivery company. The Company collects marketing information on a daily basis with each order, such as feedback on which customer likes and dislikes the service.
The Company uses standard questionnaires to collect customers’ feedback and updates the information from time to time. The information collected includes the respondents’ full name, address, HKID card number and contact telephone number.
At the bottom of the questionnaires is the statement ‘All personal data collected will be used for research purpose only.’ However, the Company’s clerical staff shared some of the customers’ personal data with other business partners in Singapore, where they have set up a similar business. Furthermore, some of the personal data collected is stored on the Company’s cloud, which is insecure. Staff from its subsidiary company, which runs a beauty salon business, also have access to this data and are planning to contact the customers for promoting their facial treatment services.
Answer the following questions as the company secretary of Tusman Limited.
a Discuss the action of the clerical staff mentioned in the case in dealing with customers’ personal data. (10 marks)
b Advise on the security measures the Company should adopt to improve the security system for protecting the personal data held by the Company. (25 marks)
c Recommend the best practices that the Company should incorporate into its personal data privacy policy/guidelines for handling personal data in order to comply with the Personal Data Protection Ordinance.
Question 2 (45 marks)
Since the COVID-19 pandemic hit Hong Kong, Peter, the owner of Green Park Limited (the ‘Company’) which manages a theme park in Hong Kong, has been thinking of ways for it to survive since huge capital has already been invested.
Although the theme park has received some government subsidies, they are not sufficient to keep the Company afloat. One of Peter’s ideas is to cut costs by reducing its workers’ wages in order to keep the company running until normal times return. However, Peter is concerned that the reduction in wages may be in contravention of the Minimum Wage Ordinance (MWO). Peter is also planning to hire staff on an hourly basis instead of full-time, he but doesn’t know the rules. In addition, Peter thinks that if he hires staff from mainland China, he may not have to comply with Hong Kong’s Mandatory Provident Fund (MPF) requirements.
Answer the following questions as the company secretary of Green Park Limited.
a Write a report to Peter explaining what the MWO covers and the calculation of minimum wage. Include what is and what is not included as hours worked for the purposes of computing minimum wage. Also explain the consequences of failure to pay the minimum wage. (30 marks)
b Prepare a guide to MPF principles for employees of Hong Kong companies who live and/or work in mainland China.
An introduction to labour law
Before you begin your study of this topic, think about some questions. What is your perception of the level of employment protection in Hong Kong? Are Hong Kong employees better protected, and do they enjoy more benefits, than their counterparts in other Asian countries, e.g. mainland China, Singapore, or Japan?
To enable you to appreciate the importance of labour law in protecting the welfare and benefits of employees in Hong Kong, please read Case study 1.1 and try your best to answer the questions that follow it.
Case study 1.1
Albert entered into a contract with Sunshine Fitness Club (‘Sunshine’) as a fitness trainer on 4 July 2008. His remuneration comprised commission for giving private lessons to members and marketing fitness courses, and an hourly wage for conducting demonstrations. Sunshine provided Albert with all the equipment he needed for conducting private lessons. Albert was required to stay in the club from 9 am to 9 pm every day, during which time he had to wear a uniform and provide assistance to members although he did not receive pay from Sunshine for this service. He was not entitled to paid statutory holidays and was not allowed to work for other fitness clubs in Hong Kong.
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