Employees and consumers file claims after Physical Fitness abruptly closed

A group of more than 30 former staff of Physical Fitness filed employment claims to the Labor Tribunal on Monday, while one of the affected consumers has sought HK$135,000 in compensation following the sudden closure of the gym chain earlier this month.

The staff applying for compensation includes trainers, beauty advisors, and receptionists. 

The Mandatory Provident Fund Schemes Authority (MPFA) had initiated legal action against Physical for the unpaid MPF contributions and surcharges totaling HK$3.37 million as the chain failed to pay the employees' pension funds since June.

As of last Thursday (Sep 26), the Labor Department has received complaints from around 760 employees, most of which were related to claims for wage arrears and other employment rights. 

Meanwhile, one affected customer alleges in the writ that on July 7 and August 9, 2023, he signed a contract to purchase HK$60,000 worth of 75 stretching classes, HK $162,000 worth of 110 myofascial release classes, and 100 weight resistance training classes.

The plaintiff has already paid in full over HK$220,000, including HK$160,000 via an online virtual bank loan.

However, due to the abrupt closure of Physical, the plaintiff remains with 174 lessons outstanding, totaling HK$135,000.

The plaintiff filed a claim requesting recovery from his losses, but Physical Fitness has yet to refund or provide other compensation.