Labour disputes reported in the January-July period fell 8.5% on the same period last year to 129 cases, thanks to strenghtened enforcement.

Of them, disputes involving the catering industry fell 52% from 54 to 26.

Permanent Secretary for Economic Development & Labour (Labour) Matthew Cheung today said the catering industry fall was attributed to the improved economy and the efforts of trade unions and the Government in protecting workers' rights.

Mr Cheung said the Labour Department launched an operation in August last year to deal with restaurant closures through early intervention and proactive consultation. It deterred unscrupulous employers from depriving employee rights and from abusing the Protection of Wages on Insolvency Fund.

Since the operation's launch, applications for insolvency funds from the catering industry fell to 2,518 in the August-July period, from 6,160 in the corresponding period of 2004-05. Insolvency fund payments also dropped from over $76.2 million to $33 million.