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The director of Roystar Holdings Limited, Mr Suen Kar-chun, was sentenced at the Kwun Tong Magistrates' Courts today (November 8) to 160 hours community service order for wage offences under the Employment Ordinance.
Mr Suen was also ordered to clear the outstanding wages and payments via the court. The prosecution was launched by the Labour Department.
A spokesman for the Labour Department welcomed the judgment, saying it would send a strong message to directors or responsible persons of a limited company that they had a personal responsibility to ensure that wages were paid to employees in accordance with the Employment Ordinance.
"This is the first case where a director or responsible person of a limited company has been given a community service order. Five other directors or responsible persons of a limited company have been given custodial sentences this year for wage offences. It shows that the courts are attaching more importance to such offences. Employers should not defy the law," he said.
The two employees involved in this case were delayed wage payments by the company and had their employment terminated on April 7 last year. They were owed wages of about $50,000 and other terminal payments. Subsequently, the employees lodged claims with the Labour Tribunal which ruled in their favour. However, the company failed to honour the award.
The Labour Department investigated the case and found that wage offences were committed with the director,¡@Mr Suen Kar-chun's consent, connivance or neglect.
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, that person will be guilty of a like offence. The maximum penalty is a fine of $350,000 and imprisonment for three years.
"The Labour Department does not tolerate wage offences and will prosecute directors and employers who defy the law," the spokesman said.
Employees who are owed wages should immediately call the Labour Department's complaint hotline, 2815 2200.
Ends/Thursday, November 8, 2007
Issued at HKT 18:25
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