Secretary for Labour and Welfare Chris Sun on Saturday said workers affected by the liquidation of a construction group could seek help through the government's insolvency fund, a day after Fung Cheung Kee announced it had initiated proceedings to wind up and dismissed all of its employees.

The minister said the Labour Department had responded to news about the company's decision, adding that it understood around 120 staff were directly employed by the group.

He also said workers could seek to apply to the Protection of Wages on Insolvency Fund, regarding issues such as wages owed and severance payments.

"We have reached out to the relevant trade unions, working with them to see if there are any workers who need help," Sun told reporters.

"We understand that subcontractors are involved. We hope to get in touch and understand how many workers are affected, and what their needs are. We will definitely go all out to help them."

The city's pension regulator said subsidiaries under the construction group have failed to make mandatory retirement fund contributions for several months, totalling some HK$60,000 and affecting around 10 workers.

The Mandatory Provident Fund Schemes Authority said it has reached out to the firm to follow up, adding that it would file a proof of debt on behalf of the affected employees if the company confirmed its liquidation.

The Development Bureau, for its part, said one of the group's subsidiaries – Cheung Kee Fung Cheung Construction Company – is on its approved list of public works contractors.

But the construction firm did not have any outstanding public works projects, the bureau said.