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An employer in the information technology industry was sentenced to three months' jail and fined $4,500 at the Eastern Magistrates' Courts yesterday(December 19) for wage, annual leave pay and severance payment offences under the Employment Ordinance. He was also ordered to clear the outstanding sum 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 that they have to ensure that wages, annual leave pay and severance payment were paid to employees in accordance with the Employment Ordinance.
The employer failed to pay wages to an employee within seven days after the expiry of wage periods and termination of employment as required by the ordinance. The employer also failed to pay annual leave pay to the employee within seven days after the termination of employment as required by the ordinance. The total amount of wages and annual leave pay involved were about $172,000. In addition, the employer failed to pay severance payment of about $15,000 to the employee within the time limit specified in the order of the Labour Tribunal.
Section 23 and 25 of the Employment Ordinance stipulates that 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 willfully and without reasonable excuse commits an 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 31O(1A) of the Employment Ordinance stipulates that severance payment shall be paid by an employer within the time ordered by the Minor Employment Claims Adjudication Board or Labour Tribunal, and where there is no such order as to the time within which the severance payment shall be payable, the sum shall be paid within 14 days from the date of the order of payment. Section 41D of the Employment Ordinance stipulates that annual leave pay due upon termination of employment shall be paid as soon as practicable and in any case not later than seven days after the termination. Any employer who fails to comply with the requirements of Sections 31O(1A) and 41D of the Employment Ordinance regarding the respective payments of severance payment and annual leave pay is liable to a maximum fine of $50,000 for each offence.
A spokesman for the Labour Department said, "The Labour Department will not tolerate wage offences and will spare no effort in bringing to justice employers and directors who defy the law."
Ends/Tuesday, December 20, 2011
Issued at HKT 10:22
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