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Director of Harmony Property Management Limited, Mr Fung Hung-yiu, was sentenced to four weeks' imprisonment, suspended for 18 months after being convicted in Kwun Tong Magistrates' Court today (September 7) of wage offences under the Employment Ordinance. The prosecution was taken out by the Labour Department.
A spokesman for the Labour Department welcomed the judgment, adding that it would send a strong message to company directors that they had a personal responsibility to ensure wages were paid to employees in accordance with the Employment Ordinance.
"This is the fourth case this year in which a custodial sentence has been imposed on a company director for wage offences. It shows that the courts are attaching more importance to such offences. Employers should not defy the law," he said.
Harmony Property Management Limited ceased operation in October last year with outstanding wages and other termination payments owed to around 200 employees. The employees then lodged claims with the Labour Tribunal and were given an award. However, the employer did not honour the award to pay them.
The Labour Department investigated the case and evidence showed that the wage offences were committed with the director, Mr Fung's consent, connivance or neglect. Nine employees agreed to act as the prosecution witness. The total wage amount involved was around $85,000.
According to Section 23 and 25 of the Employment Ordinance, wages due upon expiry of the last day of the wage period or upon termination of employment shall be paid as soon as practicable, but not later than seven days. Any employer who fails to do so wilfully and without reasonable excuse commits an offence.
Section 64B of the ordinance stipulates that where any wage payment offence committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate, the director, manager, secretary or other similar officer shall be guilty of a like offence. Offenders are liable to prosecution and, upon conviction, to a maximum penalty of a fine of $350,000 and imprisonment for three years.
"The Labour Department will not tolerate wage offences and will spare no effort in prosecuting directors and employers who defy the law," the spokesman said.
Employees who are owed wages should call the Labour Department's complaint hotline, 2815 2200, immediately.
Ends/Friday, September 7, 2007
Issued at HKT 18:45
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