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The Labour Department has reminded employment agencies to comply with the law or face prosecution and possible revocation of licences in the light of a recent court case.
XPAT Domestic Limited was fined $14,200 at the Eastern Magistrates' Courts for unlicensed operation and overcharging two job seekers.
The employment agency concerned was found to have started its business before a licence was issued. An investigation also discovered that the agency collected $295 registration fee from job seekers and demanded job seekers to pay several thousand dollars for placement service.
According to Part XII of the Employment Ordinance, operators must apply for a licence before starting an employment agency business. The licence fee, as stipulated in the Employment Agency Regulations, is $2,000 for a main office and $385 for a branch office. The maximum penalty for unlicensed operation is $50,000.
In addition, the operator of an employment agency is not allowed to charge any reward, payment or other advantage in respect of expenses from a job seeker directly or indirectly in connection with having obtained, obtaining or seeking to obtain employment for him, except a commission of not more than 10% of his first month's salary after a successful placement. The maximum penalty for overcharging a job seeker is $50,000.
Under the Employment Ordinance, the Commissioner for Labour may refuse to issue or renew, or may revoke a licence if the employment agency operator has contravened any provision of Part XII of the Ordinance or the Employment Agency Regulations, or if the operator has been convicted of an offence involving membership of a triad society, fraud, dishonesty or extortion, or if for any other reason, he is not considered a fit and proper person to operate an employment agency.
For inquiries or complaints against unlicensed operations or overcharging of commissions by employment agencies, please call the Employment Agencies Administration at 2852 3535 or visit its office at 12/F, Harbour Building, 38 Pier Road, Central, Hong Kong.
Ends/Saturday, July 28, 2007
Issued at HKT 14:00
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