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An employer of an advertising company, Mr Kong Wai-lung, was convicted and sentenced to two months' imprisonment for committing wage offences under the Employment Ordinance at the Eastern Magistrates' Courts yesterday (August 25). The prosecution was taken out by the Labour Department.
The Permanent Secretary for Economic Development and Labour, Mr Matthew Cheung Kin-chung, welcomed the judgement. "This is the heaviest sentence ever imposed on employers defaulting on wage payments.
"It is the third time this year that an employer has been given a jail sentence for wage offences, demonstrating that the courts are attaching more importance to such offences. Employers should not defy the law," Mr Cheung said.
The defendant, Mr Kong Wai-lung, employed seven youngsters from September to December in 2002 to conduct telephone surveys for the advertising company. The employees were each owed wages ranging from $2,000 to $3,000 after termination of employment.
The Department took out prosecution after collecting sufficient evidence and securing the consent of the employees to act as prosecution witnesses. However, the defendant left Hong Kong and did not appear in the court hearing.
The court then issued an arrest warrant. When the defendant returned to Hong Kong early this year, he was arrested and brought before the court for hearing. He was convicted yesterday and given an immediate jail sentence for two months.
The defendant was also fined for committing wage offences two years ago. As he failed to pay the fine as ordered, he was sentenced to imprisonment for 28 days.
"The defendant deliberately and blatantly committed wage offences and deprived employees of their rights and benefits. We cannot and will not tolerate this. We will investigate similar offences and do everything within our power to bring errant employers and company directors to justice.
"Employees suffering from defaults of wage payments should come forward and act as witnesses in prosecution against offending employers or company directors to safeguard their rights.
"We will not hesitate to prosecute the employers and company directors concerned if there is sufficient evidence and if the employees are willing to testify in court," Mr Cheung said.
"Employers have the responsibility for paying wages under the Employment Ordinance. They should not attempt to shirk their responsibility. The Labour Department has adopted a multi-pronged approach in deterring wage offences, including stepping up inspections and prosecutions, as well as studying a proposal to raise its penalty.
"The current maximum penalty of a wage offence is a fine of $200,000 and imprisonment for one year. We are proposing to raise the maximum penalty to $350,000 and imprisonment for three years to achieve a greater deterrent effect. We will consult the Labour Advisory Board and the Manpower Panel of the Legislative Council on the proposal soon.
"Last month, the Labour Department employed three veteran ex-police officers with expert knowledge of criminal investigation. They help investigate wage offences and reinforce the Department's capacity in collecting evidence. We are now recruiting one investigation adviser and three more investigation officers," he continued.
In 2004, 504 summonses for wage offences were convicted, up 13% over the previous year. In the first half of this year, there were 325 convicted summonses, an increase of 30% over the same period last year.
"Apart from Mr Kong Wai-lung's case, a company director of a restaurant and a person-in-charge of a printing company were given a one-month custodial sentence and a suspended jail sentence respectively this year. An employer of a restaurant was also given a heavy fine of $120,000.
"In addition, two employers who committed wage offences were sentenced to jail after they failed to pay the court as ordered. These cases showed that the courts have attached great importance to wage offences. Employers and company directors should not defy the law," Mr Cheung said.
Mr Cheung urged young job-seekers to be aware of their statutory rights and should promptly seek help from the Labour Department when employers owe them wages.
According to Section 23 and 25 of the Employment Ordinance, wages due upon expiry of the last day of the wage period and 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 commits an offence. Upon conviction, the maximum penalty is a fine of $200,000 and imprisonment for one year.
Ends/Friday, August 26, 2005
Issued at HKT 19:13
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