Chan Yau Wei v. Chuen Kee Seafood Restaurant Group Ltd
Read the full judgment text of DCEC 111/2001 on BabelCite. This District Court judgment was delivered on 29 May 2004.
1. The Applicant (Mr. Chan Yau Wei) makes an application against his former employer, the Respondent (Chuen Kee Seafood Restaurant Group Limited) for compensation under ss. 9 & 10 of the Employee's Compensation Ordinance, Cap. 282, Laws of Hong Kong. The Respondent opposes to the application.
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DCEC000111/2001 DCEC 111/2001 IN THE DISTRICT COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION EMPLOYEES' COMPENSATION CASE NO. 111 OF 2001 ____________
____________ Coram: Deputy District Judge J. Lam in Court Date of Hearing: 14 - 15 April 2004 Date of Handing Down Judgment: 29 May 2004 ____________ JUDGMENT ____________ 1.The Applicant (Mr. Chan Yau Wei) makes an application against his former employer, the Respondent (Chuen Kee Seafood Restaurant Group Limited) for compensation under ss. 9 & 10 of the Employee's Compensation Ordinance, Cap. 282, Laws of Hong Kong. The Respondent opposes to the application. 2.The amounts of the compensation claimed have been agreed at HK$ 87,321.6 (under s. 9) and HK$ 334,732.8 (under s. 10) respectively. 3.Counsel from both sides (Mr. Pirie for the Applicant; Mr. Chang for the Respondent) agree that the sole issue is whether the Applicant was injured in the course of employment. Mr. Chang concedes that if the accident arose in the course of employment, the presumption in s. 5(4)(a) of Cap. 282 shall operate to deem the accident as also arising out of employment. The compensation applied for will then be payable. 4.The facts of the case are almost undisputed:
5.From the totality of the evidence, it is clear that: -
6.The issue for this Court to decide is whether the Applicant was in the course of employment when the accident occurred. 7.Mr. Pirie contends that the Applicant was. He says 'in the course of employment' does not only mean actual performance of work. It also covers such situation when the employee was doing anything incidental to his employment. Mr. Pirie mentions several cases but he says one case, The Commonwealth v. Oliver (1962) 107 C.L.R. 353, says it all. He says that case illustrates how the law has moved on. He points out how Dixon CJ apparently took a more liberal approach to the interpretation of the situation and thus came to a different decision on a set of facts very similar to those in Whittingham v. The Commissioner of Railways (W.A.) (1931) 46 C.L.R. 22 (in that case the judge was also involved). 8.Mr. Chang, in citing Lord Goff's statement in Smith v. Stages [1989] 1 AC 928 [H.L.], at 936B: -
is in agreement with Mr. Pirie in that if the Applicant was doing some act(s) incidental to his employment at the time of the accident, he could be regarded as being in the course of employment. Of course, such act(s) must be reasonably incidental, not unreasonably or remotely. This 'incidental to the work' test was actually adopted by the Hong Kong Court of Appeal in Lam Min v. Yau On Construction Co. [1981] HKLR 646 (a case not cited by both sides). 9.Mr. Chang says that in order to determine what is incidental, the Court must first look at the nature of the employment. He cites Lord Wrenbury's words in St. Helens Colliery Co. Ltd. v. Hewitson [1924] AC 59 [H.L.], at 92: -
I agree to Mr. Chang's proposition. 10.The Applicant was employed by the Respondent to work as a waiter to serve customers in the restaurant. He was remunerated on monthly basis (though paid at half-monthly intervals) to work on a number of days per week, including holiday days. His daily working hours were separated by a recess on non-holiday working days and none on holiday working days. Though the Applicant had no obligation to work during the recess, he would offer assistance should the need arise. He was under no obligation to stay in the restaurant during the recess but for convenience and necessity, he had made it a habit to go out for tea and then come back for a nap at an upper level before taking the dinner provided by the Respondent at the Ground Level at around 5 pm. The night session of work was scheduled to start after the dinner at 5:30 pm but if customers did patronize the restaurant early, the Applicant would still render service during his mealtime. The Respondent recognized the Applicant's practice and raised no objection to his staying in the premises for rest before dinner. The Applicant was allowed to enjoy his recess freely but he was not to disturb the customers or to do anything illegal during such period. At all material times including the recess and the meal periods, the Respondent had control (Mr. Chang does not say otherwise) of the premises. 11.Mr. Chang says that the accident occurred during the Applicant's recess. The Applicant was actually enjoying his own free time; the employment being suspended then. The Respondent only granted a liccnce for the Applicant to stay in the restaurant during the recess. Mr. Chang also says the Applicant's taking the dinner provided freely by the employer (thus his going down the stairs to take the meal) was no obligation; it was just a benefit conferred by the employment. Mr. Chang argues that the Applicant was not in the course of employment when the accident occurred, as he was not performing any duty under his employment or incidental to his employment. 12.With respect to Mr. Chang, I do not agree with him. He over-emphasizes the concept of duty and interprets the whole thing too narrowly. The statement of Lord Wrenbury quoted by him (supra) is right but it must be viewed in context rather than in isolation. The Law Lord also said in the same case at p. 91: -
13.In another case Weaver v. Tredegar Iron & Coal Co. Limited [1940] AC 955 [H.L.], also in Mr. Chang's list of authorities, the true perspective of the connotation of duty was discussed by Lord Atkin at p. 966: -
The facts of that case were that the workman was pushed off a platform by a crowd of fellow workmen when seeking to board a train after leaving work at the collieries. The platform and the train were owned and controlled by a railway company, but the platform was situated adjacent to and accessible only from the colliery premises and was not open to the public. The arrangement was made between the employer with the railway. There was no duty or obligation to use the railway and thus the platform; the workers were free to go home by other means of transport. But in practice almost all employees used the railway. The House of Lords held that the worker was making using of the facilities of egress from his place of work as provided by the employer, and the worker was also in the premises which his employer had obtained on licence for him to use and which he had no right to be except by virtue of his employment. The House of Lords treated the fact that there were alternative mans of egress as irrelevant. They found the worker being in the course of employment. 14.It is clear that the mentioned Law Lords did not adopt a restricted connotation of 'duty' as Mr. Chang did. Instead, they used a liberal approach to consider what was incidental to employment. 15.The Law Lords are no doubt right. Employment is not just work or performance of duty. Service rendered by the employee is only one side of the coin. The other side is that the employer will provide perquisites or benefits to the employee, who is only entitled to such rewards as a result of the service he has rendered or will render to the employer. There is no employment in this world that does not embrace such necessary reciprocity. An employee is not a machine working incessantly. There must be times when he pauses in his employment out of necessity or by mutual arrangement (express or implied) between him and the employer or merely as allowed by the employer for him to enjoy the perquisites he is entitled to under the employment. 16.If one can term Mr. Chang's argument 'the contractual duty test', it is just such duty test that the Court in the case of Lam Min (supra) rejected. There, the deceased employee worked on a site on an island. There were no lunch facilities available. The workers could choose to stay on the island without going out for lunch but it was customary for them to go out on a boat provided by the site owner at no charge. On a tragic out-journey, there was a collision on water and the deceased worker got drowned. Counsel for the employer contended that the taking of the boat journey had nothing to do with the duty of deceased worker; there was no contractual duty in his employment that he had to use the boat and he was not obliged to take the journey. The Court of Appeal dismissed such argument. It was ruled that the taking of the boat in the circumstance of the case was something incidental to the deceased worker's employment. The accident was regarded as arising out of employment and in the course of employment. 17.Coming back to the present case, the Applicant was enjoying his recess and going to take the dinner provided in the restaurant - a premises under the Respondent's control at the material time. Mr. Chang submits that this is a non sequitur. He cites the statement of Lord Dunedin in John Stewart and Son (1912) Ltd. v. Longhurst [1917] AC 249, at p. 256: -
18.I humbly agree with Lord Dunedin in that the element of control over the premises was not conclusive. However, it is in the Law Lord's own words 'a fact tending to show that the accident arose in the course of the employment'. 19.Mr. Chang argues that the Applicant could have been anywhere at the material time on 4 July 2000 if he had not come back to sleep in the restaurant that afternoon. He could also have done other things. In fact, he had left the restaurant and only come back to take the nap on his own will and he stayed in the premises merely under a licence granted by the Respondent. 20.I do not find such argument attractive. Again, that is too narrow a view of the whole context of this case. In any event, the Applicant at the material time was not anywhere else or doing anything else. He was in the employer's premises (i.e., his place of work) with the latter's permission enjoying a perquisite under the employment (i.e., rest by taking nap) and he was going down the stairs to take the dinner (another perquisite under the employment). The Applicant was not a stranger to the Respondent. It was not that he just happened to be there out of the blue. He was not a passer-by just dropping in for a rest. It was part of his employment that he could (and he would) rest there during the recess and to take the dinner provided by the employer. 21.It is true that the Applicant was not obliged to work during the recess. Nor was he required to stand by or to remain contactable. He could pass the time in the way he wanted (provided he did not disturb the customers or do anything illegal). He was not obliged to take the meals. But this does not mean that all these were not incidental to his employment. Rather it should be interpreted as the Respondent allowing the Applicant to enjoy in a free manner such time and appurtenances under his employment. All these were reasonably incidental to the Applicant's employment. 22.Of course, the Applicant could have done other things during the recess but it was only natural for him to rest during the recess in order to become refreshed and energetic for the night session duty. It was again natural for him to stay in the restaurant as his home was far away from his place of work. It was convenient for him to stay there. Out of necessity and convenience, the Applicant made it a practice to stay in the premises so that he could rest and take the dinner and resume duty on time. Such practice was recognized by the Respondent, who raised no objection to it. It was illogical to expect the Applicant to adopt a different practice of spending his recess or to stay elsewhere or to refuse to take the meals provided. His staying in the restaurant during the recess was reasonably and not remotely incidental to his employment. In such way, he could get refreshed and energetic. In a sense, he was equipping himself physically to cope with the night session of work. The licence granted by the Respondent to the Applicant to stay was also naturally incidental to the employment. I am sure if the Applicant were not employed by the Respondent, the latter would not grant such licence. The Respondent allowed the Applicant to rest in the restaurant to facilitate the latter's recuperation for coping with the night session of work. 23.I have found that sometimes the Applicant did not take the meals but he did so usually. It is not disputed that the meal place was on the Ground Level and the stairs was within the place of work and was the only way of ingress and egress between the Ground Level and the upper levels. If the Applicant had to take the meal, he had to use the stairs to go to the Ground Level. 24.Just as much as I have said of the Respondent's granting licence for the Applicant to stay in the restaurant for a nap, the same is true of the former's providing free meals to the latter. The Respondent was not doing this for benevolent reasons. The meals were provided as perquisites under the employment so that the Applicant could take meals conveniently and at no costs, thus satisfying his need and want before starting to work in each session. This arrangement was beneficial to the employer as much as to the employee. The meals energized the Applicant. The arrangement also avoided the possibility of his coming back late from meal (if he had to take meal elsewhere). The provision of meal at the Respondent's place was, therefore, of mutual benefit. I am sure if the Applicant did not work for the Respondent, he would not be provided with such meals. The provision of meals was incidental to the Applicant's employment. It follows that the going down the stairs (after resting during recess in the restaurant with the employer's permission) to take the meal was also incidental to his employment. 25.On 4 July 2000, the Applicant woke up from his nap. Mr. Pirie put it as near 5 pm, the mealtime. However, the Applicant said in his statement that it was 4:20 to 4:25 pm. This tallies with the case of the Respondent that the accident occurred shortly before 4:30 pm. There was still slightly more than half an hour to go before the dinner. 26.There is no evidence that the Applicant would be served as a customer during the dinner. It is reasonable to assume that those taking the meal would have to help out like laying the table, moving the chairs and so on. I would not go so far as to suggest that the Applicant would have to help cooking. Certainly, that would be the business of the chef. In any event, it would be inappropriate and even rude for the Applicant to go down just on time for the meal without contributing any effort. In such circumstance, I do not find it unreasonably early when he went down the stairs at around 4:30 pm or shortly before. 27.Mr. Chang tries to say there was no employment during the recess in that the applicant was employed to work in two discreet periods. Alternatively, he says the recess was a clean break of employment if the day's employment should be considered as one period. In any event, he is saying that the employment had been ended or suspended during the recess. He quotes the joint judgment in Hatzimanolis v. A.N.I. Corporation Ltd. [1992] 173 C.L.R. 473, at p. 483 to establish that: -
28.However, one cannot ignore what Lord Dunedin in Stewart & Son Limited v. Longhurst (supra), said at p. 256: -
29.In Davidson v. Mould (1944) 69 C.L.R. 96, a case mentioned by Mr. Pirie, the then Chief Justice of the New South Wales Supreme Court, Sir Frederick Jordan, had enunciated a statement of principle which was adopted by William J. with approval in the High Court. Jordan J. said: -
30.In the present case, the Applicant had left the Respondent's premises but he subsequently re-entered it for purposes (to take a nap and then to take the dinner provided) incidental to his employment and nothing else. If the course of employment had stopped when he left the premises after the morning session, it re-commenced when he re-entered it later that afternoon. Since then, he had not deviated from what he had been allowed to do there. He took a nap and, after waking up, went down from the 2nd Level to prepare to take the dinner at the Ground Level. He had an accident when he stepped onto the stairs, which was the only means of ingress and egress between the Ground Level and the upper levels. 31.Mr. Chang mentions a number of meal cases just as Mr. Pirie does, trying to draw a parallel between those cases and the present one. 32.I do not think it is right for anyone to compare the facts of this case with the facts of similar cases to reach a decision. It is obvious that each case has to be decided on its special facts. In Lord Dunedin's words: "each case arises in accordance with its own circumstances" (supra) and in J. Jordan's words "the question is essentially one of degree and of fact" (supra). 33.Mr. Chang also refers to some on-call duty cases, including Cheng Ho Kee v. Secretary for Justice HCA 16883 of 1999 (unreported) decided by Hartmann J. That case was indeed concerned with Correctional Services Department officers arguing about on-call duty. Mr. Pirie has fairly conceded that the Applicant in the present case was not on call during the recess. Furthermore, Hartmann J decided his case in the context of Civil Service Regulations. I do not find this line of Mr. Chang's argument helpful. 34.Having considered all the evidence and submission adduced by both sides, I find that on 4 July 2000, shortly before 4:30 pm, when the Applicant (having woken up from his nap at the employer's premises during the recess) stepped onto the stairs in order to get down to the Ground Level for dinner (provided by the employer), he was doing an act reasonably and naturally incidental to his employment. He was in the course of his employment then. There being no other disputable issues, I rule that the Applicant is entitled to the compensation he claims. The quantum is agreed. I award the Applicant HK$ 87,321.6 under s. 9 of the Employee's Compensation Ordinance, Cap. 282 and HK$ 334,732.8 under s. 10 of the same ordinance. 35.s. 23 (1) of Cap. 282 empowers the Court to grant interest:-
36.The Applicant is surely entitled to interest on the awarded sums at judgment rate from the date of judgment to the date of payment. I so order. 37.As regards how pre-judgment interest should be calculated, there is some argument in the trial. Mr. Chang has raised the issue of delay. Both counsel have made some suggestions of the rate to be applied. However, they have not addressed me fully on the facts and the law pertaining to this issue. It seems they would rather leave it to when the main issue has been decided. Now the 'in the course of employment' issue has been decided. If no agreement can be reached between both sides on the pre-judgment interest issue, I would require them to appear before me for further argument on the pre-judgment rate and over what period such rate should apply. 38.As to costs, I make an order nisi that the Respondent is to pay the Applicant costs. Such costs are to be taxed if not agreed. I also grant certificate for counsel's attendance. 39.If both parties can come to agreement on the pre-judgment interest issue, they can take out a consent summons for this Court to issue a further order on the matter. If not, or if any party is dissatisfied with the nisi order on costs, application should be made within 14 days from the date of judgment for a date to be set down for further argument. After the 14-day period, the costs order nisi will become absolute.
Representation: Mr Nicholas Pirie instructed by Messrs. B. Mak & Co. for Applicant. Mr Jonathan Chang instructed by Messrs. Lo, Wong & Tsui for Respondent. |