A property management contract between Professional Property Management Ltd (PPM), a property management contractor, and Toto Bus Ltd. (TBL), a public transport utility, in Hong Kong, would not be renewed upon its expiry on 30th November 2019. PPM was a multinational enterprise engaging over 5,000 security guards in no less 2,000 property services and maintenance contracts in Hong Kong. PPM intended to redeploy the affected workers (over 300) to other workplaces. In view of the opposition of workers against such move, PPM attempted a second redeployment but the employees were still dissatisfied. The workers accused PPM of forcing them to resign by means of unreasonable redeployment. They demanded severance payment before deciding on whether the redeployment arrangement would be accepted. PPM appealed to the workers to report duty to the newly designated workplace on 1st December 2019, or else they would not be entitled to severance payment. On the contrary, the workers considered that they had been constructively dismissed by PPM. Ah Chuen and other 100 workers filed claims for severance payment and miscellaneous compensation against PPM, and over 90% of the claimants joined another contractor on 1 st December 2019 and continued to work in the same place since then.

Questions:

1. Please specify the possible labour law issue of this case. (1 Mark)

2. Please comment, with illustrations, assumptions and applicable laws on whether the claim/s of Ah Chuen and his colleagues was/were substantiated. (5 Marks)

3. Please provide specific recommendation(s) for good labour relations practices to minimise the captioned risk in the company in this case. (4 Marks)