Written Reply to Parliamentary Question on Liquidated Damages

Written Reply to Parliamentary Question on Liquidated Damages by Ms Grace Fu, Minister for Sustainability and the Environment

Mr Leong Mun Wai: To ask the Minister for Sustainability and the Environment (a) to date, how many Socially-conscious Enterprise Hawker Centres (SEHCs) have charged hawkers liquidated damages for failing to open for business; (b) whether NEA-operated hawker centres impose such liquidated damages on their hawkers; (c) if not, why are SEHCs allowed to levy such charges; and (c) in each year since 2020, how many hawkers operating at SEHCs have been charged such liquidated damages.

Answer:

1 The National Environment Agency does not manage the tenancies of the Socially-conscious Enterprise Hawker Centres (SEHCs). Nevertheless, we understand that the tenancy agreements between SEHC operators and its stallholders have liquidated damages clauses to deter stallholders from breaching tenancy conditions, such as failing to open for business. This is to ensure that the centres serve residents in the community well, where patrons can have access to affordable food throughout the day. This is one of the important social objectives of our hawker centres.

2 Since 2020, one SEHC operator has imposed liquidated damages on three stallholders for failing to open for business. These liquidated damages were imposed after repeated reminders and engagement when the stallholders failed to open for business for extended periods without valid reasons, thereby causing inconvenience to residents and patrons. If no action is taken for the non-compliance, it would have been unfair to other tenants who have complied to the terms by working longer hours.