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Conviction for defaulting on payment of Labour Tribunal award
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     Pivot Point Company Limited and its two directors were sentenced to a fine of $84,500 at the Tsuen Wan Magistrates' Courts today (September 22) for wage offences under the Employment Ordinance and non-compliance with an award issued by the Labour Tribunal. They were also ordered to clear the outstanding wages via the court. The prosecution was taken out by the Labour Department.

     A spokesman for the Labour Department said that the judgment would send a strong message to all companies and their directors or responsible persons that they have to ensure that wages were paid to employees in accordance with the Employment Ordinance and that payment of the awards issued by the Labour Tribunal or the Minor Employment Claims Adjudication Board are duly complied with.  

     The company failed to pay wages to three employees within seven days after the expiry of wage periods and termination of employment as required by the ordinance. Additionally, the company failed to pay the awarded sum of about $24,000 to three employees within 14 days of the date of the award.  The two directors were convicted of consent, connivance or neglect in the offences.

     According to Sections 23 and 25 of the Employment Ordinance, wages due upon expiry of wage periods and termination of employment shall be paid as soon as practicable, but not later than seven days thereafter. Any employer who fails to do so wilfully and without reasonable excuse commits an offence.

     Section 64B of the Employment 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, they shall be guilty of a like offence.  Offenders are liable to prosecution and, upon conviction, to a maximum penalty of a fine of $350,000 and imprisonment for three years.

     Section 43P(1) of the Employment Ordinance stipulates that where an award issued by the Labour Tribunal or the Minor Employment Claims Adjudication Board provides for the payment by an employer of any specified entitlement, and the employer wilfully and without reasonable excuse fails to pay any sum payable under the award within 14 days after the date of the award or after the date on which the sum is payable according to the award terms, the employer commits an offence and is liable to a fine of $350,000 and imprisonment for three years.

     Section 43Q(1) of the Employment Ordinance stipulates that where any offence of non-compliance of an award issued by the Labour Tribunal or the Minor Employment Claims Adjudication Board 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, the director, manager, secretary or other similar officer shall be guilty of a like offence.

     A spokesman for the Labour Department said, "The Labour Department will not tolerate wage offences and the offences of non-compliance of awards issued by the Labour Tribunal or the Minor Employment Claims Adjudication Board and will spare no effort in bringing to justice employers and directors who defy the law."

Ends/Thursday, September 22, 2011
Issued at HKT 18:34

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