Traditional Chinese Simplified Chinese Email this article news.gov.hk
Bill to deter Labour Tribunal award defaults
********************************************

     The Government will introduce tough measures to deter defaults of awards by the Labour Tribunal (LT) and Minor Employment Claims Adjudication Board (MECAB).

     The Employment (Amendment) Bill 2009, which seeks to effect this proposal, will be gazetted on Friday (June 26) and introduced into the Legislative Council on July 8.

     Under the bill, an employer who fails to pay any sum awarded by the LT or MECAB comprising wages and entitlements underpinned by the criminal elements under the Employment Ordinance (EO) wilfully and without reasonable excuse will be liable to prosecution.

     The maximum penalty for the new offence will be $350,000 and three years' imprisonment, the same as the highest penalty for wage offences under the EO. To enable effective enforcement against corporate employers, a director or responsible person proven to have consented, connived at or been neglectful will also be liable for the same offence of non-payment committed by a body corporate.

     The Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, said, "The proposal marks a great step forward in enhancing the protection of employees' rights and benefits.

     "The problem of some employers deliberately evading their responsibility to comply with the awards by the LT has been a long-standing issue and has caused grave public concern. The creation of the new offence will provide a strong deterrent and send a clear message to the community that defaulting LT awards is a serious offence."

     "The proposal only targets those employers who do not have genuine financial difficulty but are unwilling to pay," he stressed.

     Currently, the modes of execution of LT awards are no different from the enforcement of any other civil judgments. Specifically, it is for the successful party to enforce the judgment if it is not complied with.

     However, employees with little financial means are often deterred by the time and costs involved in seeking to have awards in their favour enforced. To exploit the situation, some employers who are financially capable choose not to settle LT and MECAB awards.

Ends/Wednesday, June 24, 2009
Issued at HKT 15:30

NNNN

Print this page