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The Employment (Amendment) Ordinance 2010, which creates an offence relating to an employer's defaulting on payment of an award, will take effect today (October 29).
Under the ordinance, an employer who wilfully and without reasonable excuse fails to pay any sum awarded by the Labour Tribunal or Minor Employment Claims Adjudication Board comprising wages and entitlements underpinned by criminal sanctions under the Employment Ordinance (EO) will be liable to prosecution.
An employer commits an offence if he wilfully and without reasonable excuse fails to pay the awarded sum within 14 days after the date on which it is due, and is liable to a maximum penalty of $350,000 and three years' imprisonment.
In addition, if the wilful default on payment of an award committed by a body corporate is proved to have been committed with the consent, connivance or neglect of a director or responsible person of the body corporate, the director or responsible person commits the like offence and is subject to the same penalty.
Where the wilful default on payment of an award by a partner of a firm is committed with the consent, connivance or neglect of any other partner or person concerned in the management of the firm, such person commits the like offence and is subject to the same penalty.
The Secretary for Labour and Welfare, Mr Matthew Cheung said, "The amendment has taken into account the interests and concerns of both employers and employees. While strengthening the deterrent effect on defaults on awards made by the Labour Tribunal and Minor Employment Claims Adjudication Board on the one hand, the amendment also assures that employers who have genuine financial difficulties or other valid reasons will not be targeted. It is the outcome of mutual understanding and acceptance of the two sides."
"The new criminal offence is a significant milestone in the protection of employees' rights as well as a major breakthrough in our labour policy. It has not come easily and I am most gratified to note its implementation today."
To assist employers, employees and the public in understanding the law amendments, the Labour Department has published "A Concise Guide to the Employment (Amendment) Ordinance 2010", which is available at the department's branch offices of the Labour Relations Division and the Home Affairs Department's district offices. The concise guide can also be downloaded from the department's homepage:
www.labour.gov.hk/eng/public/content2_3.htm . Enquiries on the Amendment Ordinance can be made at the department's hotline 2717 1771.
Ends/Friday, October 29, 2010
Issued at HKT 07:01
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