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Two employers fined for wage and holiday offences

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Two employers were fined a total of $37,500 at the Eastern Magistrate's Court yesterday (July 7) for committing wage and holiday offences under the Employment Ordinance.

Onrich Investment Limited, which engaged employees for the Hong Kong Cathay Hotel in Causeway Bay, and Skyright Advertising Company were fined $30,500 and $7,000 respectively. The prosecutions were launched by the Labour Department.

Onrich Investment defaulted on wage payments of more than $111,437 from November 2002 to February 2003 to seven employees and failed to grant them statutory holidays as required by the ordinance.

In a separate case, Skyright Advertising was fined $7,000 because the employer, Kong Wai-lung, failed to pay wages to two employees within seven days of the termination of employment as required by the ordinance. The total amount of wages involved was $8,100. In addition to paying the fines, the employer was ordered to pay the employees the wages they were owed.

In this case, the employer delayed payment to his employees by using the excuse that they had not finished their jobs properly and had resigned without giving advance notice.

"Summonses were served several times to that employer who did not attend the scheduled court hearings. A warrant of arrest was issued to him eventually," a spokesman for the department said.

"We are determined to protect the rights and benefits of workers under the ordinance. As part of our stringent enforcement action, we will exhaust all available means to bring suspected offenders to court for hearing to ensure that justice is done for workers."

"We have streamlined procedures to expedite investigations and prosecutions," the spokesman said.

He added that job-seekers should beware of job traps. They should be wary of dubious recruitment advertisements, especially those requiring no skills or academic qualifications, but offering high pay.

"They should take note of the name of the employer, the company's address and nature of business. They should also make sure that they are engaged as employees. All these will facilitate their future employment claims, if any."

"Before signing an employment contract, they should make sure that they understand and accept all the terms. In case of doubt or problems, they should consult their family or appropriate authorities," the spokesman added.

According to the Employment Ordinance, wages due upon the expiry of the last day of the wage period or upon termination of employment shall be paid as soon as practicable within seven days. Any employer who fails to do so wilfully and without reasonable excuse is liable to a maximum fine of $200,000 and a year's jail.

The ordinance also provides for an employee's entitlement to 12 statutory holidays a year. If the employer requires the employee to work on a statutory holiday, the employer should arrange an alternative holiday for him/her within 60 days and give not less than 48 hours' prior notice. Under mutual agreement, a substituted holiday can also be arranged within 30 days. Any employer who fails to do so without reasonable excuse is liable to a maximum fine of $50,000.

End/Tuesday, July 8, 2003

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