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The proprietor of a transportation company was sentenced to six months' immediate imprisonment at the Tsuen Wan Magistrates' Courts today (May 29) for failing to take out an insurance policy for his employee as required by the Employees' Compensation Ordinance.
The Labour Department welcomes the judgment. This is the first case this year in which an employer was sentenced to imprisonment for not taking out an insurance policy for his employee. The Labour Department hopes that the conviction would send a strong message to other employers that they should take out employees' compensation insurance policies for their employees in accordance with the law.
The proprietor employed a truck porter on February 1 last year to collect goods from Chek Lap Kok. The head of the worker was accidentally trapped between the tailgate and the rear end of the cargo compartment of the truck when operating the tail lift platform. The worker sustained serious head injury and was certified dead on the spot. It was found that the proprietor had failed to secure an insurance policy for the worker 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 at common law for injuries at work.
"Employers failing to secure insurance cover for their employees commit an offence and are liable to a maximum fine of $100,000 and imprisonment for two years. In addition, they are liable to pay a surcharge to the Employees' Compensation Assistance Fund Board. The Labour Department does not tolerate such offences and spares no efforts in prosecuting employers who defy the law," a spokesperson for the Labour Department said.
The Labour Department stresses that employers should take out employees' compensation insurance policies for their employees to ensure that employees injured at work could receive employees' compensation. The Labour Department will continue to safeguard the statutory employment rights and benefits of all workers in Hong Kong. The spokesperson urged all workers who suspect that their employers have not taken out insurance cover for them to promptly report the matter to the Labour Department, assist in investigation and give evidence to protect their statutory rights and benefits.
To enhance the awareness and knowledge of their employment rights and benefits, the department will continue to hold various promotional and educational activities.
Ends/Thursday, May 29, 2014
Issued at HKT 18:28
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