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Mr Yeung Kut-pui trading as New Town Garment Factory was fined $10,000 at the Kwun Tong Magistrates' Courts today (October 18) for failing to take out insurance policies for its employees as required by the Employees' Compensation Ordinance.
The offences were detected during inspections by the Labour Department in April this year. The employer failed to secure insurance policies for 15 employees.
Section 40(1) of the ordinance stipulates that employers must take out insurance policies for all employees to cover their liabilities both under the ordinance and at common law for injuries at work.
Employers failing to secure insurance cover for their employees are liable on conviction to a maximum fine of $100,000 and imprisonment for one year. In addition, they are liable to pay a surcharge to the Employees Compensation Assistance Fund Board.
Employees are urged to call the complaint hotline of the department's Labour Inspection Division on 2815 2200 if they suspect that their employers have not taken out insurance cover for them. All complaints will be handled in strict confidence.
Ends/Thursday, October 18, 2007
Issued at HKT 17:57
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