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The proprietor of a bookshop located at 206-216 Castle Peak Road, Yuen Long, was fined $10,000 at the Fanling Magistrates' Courts today (November 18) for failing to take out an insurance policy for his employees as required by the Employees' Compensation Ordinance.
The offence was detected during an inspection by the Labour Department on July 15, 2008. It was found that the employer failed to secure an insurance policy for five employees and the Labour Department launched the prosecution.
Section 40(1) of the Employees' Compensation Ordinance stipulates that employers are required to take out insurance policies for all their employees to cover their liabilities both under the ordinance and common law for injuries at work.
Employers failing to secure insurance cover for their employees commit an offence and are liable on summary 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/Tuesday, November 18, 2008
Issued at HKT 17:55
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