The Social Welfare Department has intervened in a case in which the Neighbourhood Advice-Action Council reportedly dissolved some staff contracts due to budget errors.
Speaking to the media today, Secretary for Labour & Welfare Dr Law Chi-kwong said the department has asked the council for details, including account information.
Dr Law said there is no standard penalty for this kind of arrangement, but will study the situation.
"It depends at the end of the day whether the Social Welfare Department discovers anything that we consider to be irregular or if there is any negligence."
He said he hopes the council can retain as many staff as possible.